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Employers Face Minimum Wage Increases in Certain Cities and Local Areas
Tuesday, June 13, 2023

Although many cities in the Golden State increased their minimum wage on January 1, 2023, various localities in California will increase their minimum wage on July 1, 2023.  Below is a list of the cities and counties that require an increase in the minimum wage for hourly employees:

City/County New Minimum Wage as of July 1, 2023
Alameda $16.52
Berkeley $18.07
Emeryville $18.67
Fremont $16.80
Los Angeles $16.78
Unincorporated Areas of Los Angeles County $16.90
Malibu $16.90
Milpitas $17.20
Pasadena $16.93
San Francisco $18.07
Santa Monica 16.90
West Hollywood $19.08

Although West Hollywood previously increased its minimum wage on January 1, 2023, this new increase makes West Hollywood the city with the highest minimum wage in both California and the nation.  West Hollywood’s July 1 increase does away with the distinction between employers with less than or more than 50 employees and requires $19.08/hour for all private employers and regardless of industry.  This hourly rate is still lower than West Hollywood’s Living Wage Rate requirements for employers with service contracts.  

The increase in the local minimum wage does not impact the salary requirements for an employee to meet the administrative, professional, or executive exemptions since exempt employees must be paid twice the state’s minimum wage—not the locality’s minimum wage.

The increase in the minimum wage has various implications from a wage-and-hour context, impacting payments for such things as overtime, meal, and rest break premiums, and split shifts, to name a few.  Employers also should be mindful of how these minimum wage increases impact employees who work fully remotely and those on a hybrid schedule.  Certain localities require payment of the higher minimum wage if an employee works only a few hours during the week in the city.  This is just one of the few nuances that come with minimum wage increases.

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