Increases To California’s Local Minimum Wages Effective July 1, 2019

California’s Minimum Wage: In 2016, California enacted a new law which will gradually increase the minimum pay received by nonunion employees. The hourly minimum wage will increase based upon the size of the employer to $15 per hour. The 2016 law also created a “Minimum Salary Threshold” establishing the minimum compensation a salaried employee can be paid to be exempt from California’s overtime laws. After 2023, the Minimum Salary Threshold and state minimum hourly wages will be linked to the Consumer Price Index.

Effective January 1, 2019, California’s state minimum wage increased from $10.50 to $11 per hour for employers with twenty-five (25) or fewer employees, and from $11 to $12 per hour for employers with twenty-six (26) or more employees. In 2019, the Minimum Salary Threshold is $45,760 per year ($22 per hour based on a 40-hour workweek and 2080 hours worked per year) for employers with twenty-five (25) or fewer employees, and to $49,920 per year ($24 per hour) for employers with twenty-six (26) or more employees.

Local Minimum Wage Rates: Some California cities and counties have enacted local city or county wide minimum wages which are higher than California’s Minimum Wage. Employers must pay qualifying employees either the California Minimum Wage or the Local Minimum Wage, whichever is greater.

A few of the major population centers law are listed, below. Please be certain to check local laws to determine wage rates.

Alameda: As from July 1, 2019, the local minimum wage for all nonunion employees regardless of their employer’s size is $13.50 per hour.

Belmont: As from July 1, 2019, the local minimum wage for all nonunion employees regardless of their employer’s size is $13.50 per hour.

Berkeley: On July 1, 2019, the local minimum wage for all nonunion employees regardless of their employer’s size increased from $15.00 per hour to $15.59 per hour. The local minimum wage will increase based on the local Consumer Price Index every July 1.

Cupertino: As from July 1, 2019, the local minimum wage for all nonunion employees regardless of their employer’s size is $15.00 per hour.

El Cerrito: As from July 1, 2019, the local minimum wage for all nonunion employees regardless of their employer’s size is $15.00 per hour.

Emeryville: As from July 1, 2019, the local minimum wage for all nonunion employees regardless of their employer’s size is $16.30 per hour.

Freemont: The local minimum wage is determined by the employer’s size. For employers of 25 or fewer employees, the California minimum wage of $11 per hour applies. For employers with 26 or more employees, the local minimum wage is $13.50 per hour.

Long Beach: There is a local minimum wage for Hotel workers of $14.97 per hour. For all other employees, regardless of the size of their employer is the California state minimum wage.

Los Altos: As from January 1, 2019, the local minimum wage for all nonunion employees regardless of their employer’s size is $15.00 per hour.

Los Angeles’ (city and county): The local minimum wage is determined by employer size, with a special rate for Hotel Workers. As from July 1, 2019 the local minimum wage for employers with 25 or fewer nonunion employees is $13.25 per hour. For employers with 26 or more nonunion employees, the local minimum wage is $14.25 per hour. The local minimum wage for nonunion hotel workers, regardless of employer size is $16.63 per hour.

Malibu: The local minimum wage is determined by employer size. As from July 1, 2019, the local minimum wage for employers with 25 or fewer employees is $13.24. The local minimum wage for employers with 26 or more employees is $14.25 per hour.

Milpitas: As from January 1, 2019, the local minimum wage for all nonunion employees regardless of their employer’s size is $15.00 per hour.

Mountain View: As from January 1, 2019, the local minimum wage for all nonunion employees regardless of their employer’s size is $15.65 per hour.

Oakland: The local minimum wage for all nonunion employees, regardless of size is $13.80 per hour. There is also a special minimum wage for hotel workers. The local minimum wage for hotel workers with benefits is $15.00 per hour. The local minimum wage for hotel workers without benefits is $20.00 per hour.

Palo Alto: As from January 1, 2019, the local minimum wage for all nonunion employees regardless of their employer’s size is $15.00 per hour.

Pasadena: As from July 1, 2019, the local minimum wage for employers with 25 or fewer employees is $13.25. The local minimum wage for employers with 26 or more employees is $13.50 per hour.

Redwood City: As from January 1, 2019, the local minimum wage for all nonunion employees regardless of their employer’s size is $13.50 per hour.

Richmond: The local minimum wage for employees with benefits is $13.50 per hour. The local minimum wage for employees without benefits is $15.00 per hour.

Sacramento: As from July 1, 2109 the local minimum wage increased to $11.75 per hour. It will increase again July 1, 2020 to $12.40 per hour. Thereafter, the local minimum wage will be linked with increases to the Consumer Price Index.

San Diego: As from January 1, 2019 the local minimum wage increased from $11.50 per hour to $12.00 per hour. Future increases are linked to the local Consumer Price Index.

San Francisco: As from July 1, 2019, the local minimum wage increased from $15.00 to $15.59 per hour. Future increases are linked to the Consumer Price Index.

San Jose: As from January 1, 2019 the local minimum wage is $15.00 per hour. Future increases are linked to the local Consumer Price Index.

San Leandro: As from July 1, 2019, the local minimum wage for all nonunion employees regardless of their employer’s size is $14.00 per hour.

San Mateo: As from July 1, 2019, the local minimum wage for all nonunion employees regardless of their employer’s size is $13.50 per hour. As of January 1, 2020, the local minimum wage for all nonunion employees regardless employer size will increase to $15.00 per hour.

Santa Clara: As from January 1, 2019, the local minimum wage for all nonunion employees regardless of their employer’s size is $15.00 per hour.

Santa Monica: As from July 1, 2019, the local minimum wage for employers with 25 or fewer employees is $13.25. The local minimum wage for employers with 26 or more employees is $14.25 per hour.

Sunnyvale: As from January 1, 2019, the local minimum wage for all nonunion employees regardless of their employer’s size is $15.65 per hour.

Immediate Action Required: Review your job descriptions, employee locations, and payroll to ensure compliance with local and state wage laws.

If you have questions about these or any other workplace law, please contact me at doug@dmwadelaw.com.

The materials contained herein are for informational purposes only and not to provide legal advice. For advice about a particular problem or situation, please consult with an attorney.