EMPLOYMENT LAW NEWS
California Minimum Wage in 2023
By Kris Janisch
Updated June 2023
Employers that operate in the state must monitor the ever-changing California minimum wage rates, especially at the local level, which will only grow more challenging as rates move from regular schedules to indexing.
What is the minimum wage in California in 2023?
At the beginning of 2022, California became the first state with a $15 minimum wage.
In 2023, California’s minimum wage is $15.50 per hour for all workers effective Jan. 1.
The background of minimum wage in California
California minimum wage is among the most complex in the U.S.
In 2022, California became the first state to reach a $15 standard minimum wage (for large employers) and its cities continue to pass new wage laws. And it hits $15.50 for all employers in 2023.
Meanwhile, many of those cities have moved to indexed rates, meaning they increase based on the applicable Consumer Price Index (CPI) instead of a set schedule.
Also, employers should note that some jurisdictions’ minimum wage increases changed their schedule in 2022 — yet another reminder of the challenges of tracking and applying rates in California.
Lastly, before getting into the rates for minimum wage in California, at all levels of government, it should be noted that the state does not allow employers to take tip credits, so there are no separate rates for employees who regularly receive tips. And some cities have separate rates for hotel workers.
Los Angeles County Minimum Wage
Also, Los Angeles County also has its own minimum wage rate. Effective July, 1, 2023, the rate is:
- $16.90
Remember that the law only applies to the unincorporated areas of the county. Learn more in our blog:
LA County: Incorporated vs Unincorporated – Minimum Wage Laws
California Minimum Wage: Cities
The dozens of cities in California with their own minimum wage rates update at two times of the year:
- Jan. 1
- July 1
Below is a rundown of the rates. Of course, new employment laws in California are passed all the time, and employers should monitor their locations for potential new minimum wage rates.
California Minimum Wage as of July 1, 2023
Alameda
- $16.52
Berkeley
- $18.07
Emeryville
- $18.67
Fremont
- $16.80
Los Angeles
- $16.78
Long Beach
- The city otherwise follows the state rate, but does have industry-specific rates for hotel workers and concessionaire employees
Malibu
- $16.90
Milpitas
- $17.20
Pasadena
- $16.93
San Francisco
- $18.07
Santa Monica
- $16.90
West Hollywood
- $19.08
Jan. 1, 2023 Minimum Wage Rates in California Cities:
Minimum wage in Belmont
- $16.75
Minimum wage in Burlingame
- $16.47
Minimum wage in Cupertino
- $17.20
Minimum wage in Daly City
- $16.07
Minimum wage in East Palo Alto
- $16.50
Minimum wage in El Cerrito
- $17.35
Minimum wage in Foster City
- $16.50
Minimum wage in Half Moon Bay
- $16.45
Minimum wage in Hayward
- $16.34 (large employers, 26 or more employees)
- $15.50 (small employers, 25 or fewer employees)
Minimum wage in Los Altos
- $17.20
Minimum wage in Menlo Park
- $16.20
Minimum wage in Mountain View
- $18.15
Minimum wage in Oakland
- $15.97
Minimum wage in Palo Alto
- $17.25
Minimum wage in Novato
- $16.32 (very large, 100 or more employees)
- $16.07 (large, 26-99 employees)
- $15.53 (small, 1-25 employees)
Minimum wage in Petaluma
- $17.06
Minimum wage in Redwood City
- $17
Minimum wage in Richmond
- $16.17
Minimum wage in San Carlos
- $16.32
Minimum wage in San Diego
- $16.30
Minimum wage in San Jose
- $17
Minimum wage in San Mateo
- $16.75
Minimum wage in Santa Clara
- $17.20
Minimum wage in Santa Rosa
- $17.06
Minimum wage in Sonoma
- $17 (large employers, 26 or more employees)
- $16 (small employers, 25 or fewer employees)
Minimum wage in South San Francisco
- $16.70
Minimum wage in Sunnyvale
- $17.95
What are the California salary thresholds effective Jan. 1, 2023?
- Large employers (26 or more): $64,480 annually ($5,373.33 monthly)
- Small employers (25 or fewer): $64,480 annually ($5,373.33 monthly)
- Computer Software Employees: $53.80 per hour, $9,338.78 monthly, or $112,065.20 annually
Conclusion
The federal standard minimum wage of $7.25 has not increased in more than a decade. It’s the longest stretch in the nation’s history without a minimum wage bump.
This situation has prompted smaller jurisdictions to pass a flurry of new minimum wage laws over the past few years. And in progressive states like California, minimum wage has become a hot employment law topic.
Employers that operate in California must monitor the ever-changing rates in the state, especially at the local level, which will only grow more challenging as rates move from regular schedules to indexing.
Related: Healthcare Workers Minimum Wage: $25 Trend in California
This Employment Law News blog is intended for market awareness only, it is not to be used for legal advice or counsel.
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