California’s stair-step climb to a $15-dollar minimum wage continues. Effective January 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 January 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 January 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 January 1.  For employers with 100 employees or more, the minimum wage in the city of Novato will increase to $15.24 per hour, effective January 1, 2021.

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

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