Effective July 1, 2020, several California cities will implement minimum wage increases. Generally, employees who perform at least two hours of work in a city are covered by the minimum wage provisions of that city, which would be at or above the California minimum wage rate.
Cities with pending minimum wage hikes and the corresponding new minimum hourly wage as of July 1, 2020 are as follows. Where two numbers are provided, the larger applies to employers with 26 or more employees and the smaller applies to employers with 25 or fewer.
- Alameda - $15.00
- Berkeley - $16.07
- Emeryville - $16.84
- Fremont- $13.50/$15.00
- Long Beach (Hotel Workers) - $15.47
- Long Beach (Concessionaire Workers) - $15.30
- Los Angeles (city and unincorporated county areas) $14.25/$15.00
- Malibu $14.25/$15.00
- Milpitas - $15.40
- Novato- $13.00 (25 or fewer employees); $14.00 (26-99 employees); $15.00 (100+ employees)
- Pasadena $14.25/$15.00
- San Francisco (city and county) - $16.07
- San Francisco (“Government Supported Employees”) - $14.22
- San Leandro - $15.00
- Santa Monica $14.25/$15.00
- Santa Monica (Hotel Employees) - $16.63
- Santa Rosa- $14.00/$15.00
The above list is not exhaustive of every possible local minimum wage increase—employers should inquire as to any applicable local minimum wage rates where their employees perform work. Two cities—San Carlos and Hayward, delayed their local minimum wage increases scheduled for July 1st, due to the COVID-19 pandemic. Employers in cities without a specific minimum wage are subject to California’s minimum wage ($12/$13). Local minimum wages do not affect the California salary test for exempt status, which requires payment of a monthly salary of at least twice the State’s minimum wage ($4,160 /$4506.67 per month).
The State of California, as well as other cities not listed above, increase their minimum wage on January 1st. Eventually, California’s minimum wage will reach $15.00, but some cities may continue to increase their wages above that mark. Employers should always be cognizant of the minimum wage of all locations in which they do business and in which their employees work.