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Get Ready for California’s Statewide and Local Minimum Wage Hikes

California’s stair-step climb to a $15 minimum wage continues. Effective Jan. 1, 2021, the minimum wage for employers with 25 employees or less will increase to $13.00 per hour, and for employers with 26 or more employees, the minimum wage will increase to $14.00 per hour. Employers must remember this increase also affects minimum salary requirements for exempt employees.

While some local minimum wages increase mid-year, many others also increase on Jan. 1 at the same time the state’s increases take effect.

For example, in the cities of Sonoma and Hayward, the minimum wage for employers with 25 employees or less will increase to $14.00 per hour, and for employers with 26 or more employees, the minimum wage will increase to $15.00 per hour, effective Jan. 1, 2021.

Likewise, the city of Novato’s minimum wage for employees with 25 employees or less will increase to $14.00 per hour, and for employers with 26 to 99 employees, the minimum wage will increase to $15.00 per hour as of Jan. 1.  For employers with 100 employees or more, the minimum wage in the city of Novato will increase to $15.24 per hour, effective Jan. 1, 2021.

The following local minimum wages go into effect on Jan. 1, 2021, regardless of employer size:

City

Required Minimum Wage as of Jan. 1

Belmont $15.90 per hour
Cupertino $15.65 per hour
Daly City $15.00 per hour
El Cerrito $15.61 per hour
Half Moon Bay $15.00 per hour
Los Altos $15.65 per hour
Menlo Park $15.25 per hour
Oakland $14.36 per hour
Petaluma $15.20 per hour
Palo Alto $15.65 per hour
Redwood City $15.62 per hour
Richmond $15.21 per hour
San Carlos $15.24 per hour
San Diego $14.00 per hour
San Jose $15.45 per hour
San Mateo $15.62 per hour
Santa Clara $15.65 per hour
Santa Rosa $15.20 per hour
South San Francisco $15.24 per hour
Sunnyvale $16.30 per hour

Employers must also ensure their minimum wage postings are updated appropriately to reflect state and local increases.

Andrea F. Oxman and Peter M. Waneis are attorneys with Jackson Lewis in Los Angeles. © 2020 Jackson Lewis. All rights reserved. Reposted with permission.

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