The minimum wage in California and in many local jurisdictions in the state will increase on January 1, 2022.
State Minimum Wage for 2022:
Effective January 1, 2022, the state’s minimum wage will increase to $14 per hour for employers with 25 or fewer employees. For employers with 26 or more employees, the state’s minimum wage will increase to $15 per hour.
Note: The change in the state’s minimum wage also impacts the minimum salary requirements for certain state exemptions from overtime. For the administrative, professional, and executive exemptions from overtime, employers with 26 or more employees must pay a salary of at least $1,200 per week beginning January 1, 2022. Employers with fewer than 26 employees must pay a minimum salary of at least $1,120 to these exempt employees.
Local Minimum Wages for 2022:
Many cities in California that set their own minimum wages will increase them on January 1, 2022. The following chart includes many of these local jurisdictions.
|
Jurisdiction
|
New Minimum Wage RateJanuary 1, 2022
|
|
Belmont, CA
|
$16.20
|
|
Burlingame, CA
|
$15.60
|
|
Cupertino, CA
|
$16.40
|
|
Daly City, CA
|
$15.53
|
|
El Cerrito, CA
|
$16.37
|
|
Half Moon Bay, CA
|
$15.56
|
|
Hayward, CA
|
$14.52 (25 or fewer employees)
$15.56 (26 or more employees)
|
|
Los Altos, CA
|
$16.40
|
|
Menlo Park, CA
|
$15.75
|
|
Mountain View, CA
|
$17.10
|
|
Novato, CA
|
$15 (1-25 employees)
$15.53 (26-99 employees)
$15.77 (100 or more employees)
|
|
Oakland, CA
|
$15.06
|
|
Palo Alto, CA
|
$16.45
|
|
East Palo Alto, CA
|
$15.60
|
|
Petaluma, CA
|
$15.85
|
|
Redwood City, CA
|
$16.20
|
|
Richmond, CA
|
$15.54
Note:Under city law, employers that contribute at least a certain amount towards an employee medical benefits plan may be able to take a limited credit toward the minimum wage. Remember, employers must also comply with the state minimum wage. If the state minimum wage is higher than the applicable city rate with the credit, employers must pay at least the state minimum wage.
|
|
San Carlos, CA
|
$15.77
|
|
San Diego, CA
|
$15
|
|
San Jose, CA
|
$16.20
|
|
San Mateo, CA
|
$16.20
|
|
Santa Clara, CA
|
$16.40
|
|
Santa Rosa, CA
|
$15.85
|
|
Sonoma, CA
|
$15 (25 employees or less)
$16 (26 employees or more)
|
|
South San Francisco, CA
|
$15.80
|
|
Sunnyvale, CA
|
$17.10
|
|
West Hollywood, CA
|
$15 (49 or fewer employees)
$15.50 (50 or more employees)
|
This isn’t an exhaustive list. There may be additional local jurisdictions in the state that have scheduled increases for January 1. Check your local laws to confirm compliance.
Multiple Rates:
If an employee is covered by both the state and a local minimum wage, you should generally comply with the rate most generous to the employee.
Notice Requirements:
Employers should ensure that they display up-to-date state and local minimum wage notices. Employers may also be required to furnish a notice to employees. For instance, Oakland requires employers to notify employees of the change in the minimum wage and post an updated notice by December 15, 2021. Many of these local jurisdictions require the notices be in multiple languages. Check your local rules for details.
More 2022 Increases Coming:
Some jurisdictions schedule their changes at another point during the year. For example, several other cities in California will increase their minimum wages on July 1, 2022.
Compliance Recommendations:
Ensure that you understand the minimum wage rules that apply to your employees. Please contact your dedicated service professional with any questions.