July 2022 changes in minimum wage laws

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In 2016 California enacted legislation that incrementally raises minimum wage for all employers through 2023. The statewide minimum wage effective January 1, 2022, is $14.00 per hour for small businesses (1-25 employees) and $15.00 per hour for large businesses (26+ employees). However, local cities and counties are allowed to enact minimum wage rates, and ordinances in such cities may establish higher minimum wage rates for employees working within that jurisdiction. Employers must follow the minimum wage rate that is most beneficial to the employee.

In fact, as of July 1, 2022, several California cities and counties have raised their minimum wages, and employers in those locations must be aware of the changes and adjust their pay rates accordingly. Here are the changes effective July 1, 2022, which apply to all employers regardless of size (unless otherwise noted):

Minimum wage changes effective July 1, 2022.
Jurisdiction Minimum Wage per hour
Alameda (City) $15.75 (up from $15.00)
Berkeley $16.99 (up from $16.32)
Emeryville (all businesses) $17.68 (up from $17.13)
Foster City $15.75 (up from $15.00)
Fremont $16.00 for all employers, regardless of size
Los Angeles (City) $16.04 (up from $15.00)
Los Angeles (County, including unincorporated areas) $15.96 (up from $15.00)
Malibu $15.96 (up from $15.00)
Milpitas $16.40 (up from $15.65)
Pasadena $16.11 (up from $15.00)
San Francisco $16.99 (up from $16.32)
Santa Monica $15.96 (up from $15.00)
West Hollywood (>50 employees) $16.50 (up from $15.50)
West Hollywood (50 or fewer employees) $16.00 (up from $15.00)

Employers not in compliance with these new minimum wage rates may face significant exposure to wage and hour violation and penalties. Employers should be vigilant in remaining in compliance with any additional requirements associated with their type of business. As new employment laws in California are passed periodically, employers should monitor their jurisdictions for any potential new minimum wage rates.