Local Minimum Wage Increases Effective July 1, 2020

Local Minimum Wage Increases Effective July 1, 2020
June 29, 2020 dmock2015

On January 1, 2020, as part of the state’s effort to reach a minimum wage of at least $15.00 per hour for all employees by January 1, 2023, California’s statewide minimum wage rate increased to $13.00 per hour for employers with 26 or more employees and $12.00 per hour for employers with 25 or fewer employees.  At the same time, several municipalities increased their minimum wage rates above the state minimum, with minimum wage rates as high as $16.05 in some localities.

Effective July 1, 2020, several other cities and counties will increase their minimum wage rates above the state minimum wage:

Alameda, San Leandro $15.00 per hour
Berkeley, San Francisco (City and County) $16.07 per hour
Emeryville $16.84 per hour
Fremont $13.50 per hour for employers with 25 or fewer employees
$15.00 per hour for employers with 26 or more employees
Los Angeles (City and County), Malibu, Pasadena, Santa Monica $14.25 per hour for employers with 25 or fewer employees
$15.00 per hour for employers with 26 or more employees
Milpitas $15.40 per hour
Novato $13.00 per hour for employers with 25 or fewer employees
$14.00 per hour for employers with 26 to 99 employees
$15.00 per hour for employers with 100 or more employees
Santa Rosa $14.00 per hour for employers with 25 or fewer employees
$15.00 per hour for employers with 26 or more employees

In addition to increasing wage rates for any employees who fall below these levels, affected employers must update their minimum wage postings at each jobsite.

As a reminder, employers must pay California exempt employees a salary of at least two times’ the state’s minimum wage.  In 2020, this equates to $54,080 per year for employers with 26 or more employees and $49,920 for employers with 25 or fewer employers.  Exempt employees must also spend more than half their work time performing exempt duties.

California’s next statewide minimum wage increase will occur on January 1, 2021, along with that of several municipalities.