Author, Megan Lockhart, Media Communications and Client Services Coordinator, Rancho Mesa Insurance Services, Inc.
As businesses ring in the New Year, it is important for owners to note some key changes to state and local wage policies taking effect January 1, 2023.
Established by the Fair Labor Standards Act (FLSA), the federal minimum wage rate stands at $7.25. However, changes to minimum and tipped wages will impact individual states and local areas. In California, the State minimum wage as of January 1, 2023 is $15.50 regardless of tips. Be sure to check the updates to your specific location to ensure your company is best prepared for the New Year.
Local Minimum Wage Rates for California
| Locality | Coverage | Minimum Wage as of January 1, 2023 Increase |
| Alameda City | $15.75 | |
| Belmont | $16.75 | |
| Berkeley | $16.99 | |
| Burlingame | $16.47 | |
| Cupertino | $17.20 | |
| Daly City | $16.07 | |
| East Palo Alto | $16.50 | |
| El Cerrito | $17.35 | |
| Emeryville | $17.68 | |
| Foster City | Employers that have a business license from Foster City | $16.50 |
| Fremont | $16.00 | |
| Half Moon Bay | $16.45 | |
| Hayward | Employers with 25 or fewer employees | $15.50 (state rate) |
| Hayward | Employers with 26 or more employees | $16.34 |
| Long Beach | Hotel employers (100 or more guest rooms) | $16.73 |
| Long Beach | Employers of concessionaires at the Long Beach Airport and Long Beach Convention Center | $16.55 |
| Los Altos | $17.20 | |
| Los Angeles City | General | $16.04 |
| Los Angeles City | Hotel employers with 150 or more guest rooms | $18.17 |
| Los Angeles County (unincorporated areas) | $15.96 | |
| Malibu | $15.96 | |
| Menlo Park | $16.20 | |
| Milpitas | $16.40 | |
| Mountain View | Employers that are subject to the Mountain View Business License Tax or that maintain a facility in Mountain View | $18.15 |
| Novato | Business with 1 – 25 employees | $15.53 |
| Novato | Business with 26 – 99 employees | $16.07 |
| Novato | Business with 100+ employees | $16.32 |
| Oakland | General | $15.97 |
| Oakland | Hotel employers (50 or more rooms) with qualifying health benefits | $17.37 |
| Oakland | Hotel employers (50 or more rooms) without qualifying health benefits | $23.15 |
| Palo Alto | $17.25 | |
| Pasadena | $16.11 | |
| Petaluma | $17.06 | |
| Redwood City | $17.00 | |
| Richmond | Employers that offer qualifying health benefits | $15.50 (state rate) |
| Richmond | Employers that don’t offer qualifying health benefits | $16.17 |
| San Carlos | $16.32 | |
| San Diego | $16.30 | |
| San Francisco | $16.99 | |
| San Jose | $17.00 | |
| San Mateo City | $16.75 | |
| Santa Clara City | $17.20 | |
| Santa Monica | General | $15.96 |
| Santa Monica | Hotel employers | $18.17 |
| Santa Rosa | $17.06 | |
| Sonoma City | Employers with 25 or fewer employees | $16.00 |
| Sonoma City | Employers with 26 or more employees | $17.00 |
| South San Francisco | $16.70 | |
| Sunnyvale | $17.95 | |
| West Hollywood | Employers with 49 or fewer employees | $17.00 |
| West Hollywood | Employers with 50 or more employees | $17.50 |
| West Hollywood | Hotel employers | $18.35 |
Clients can login to the RM365 HRAdvantage™ portal to review the full local minimum and tipped wages for all states and counties under the New Chart: 2023 State and Local Minimum and Tipped Wages.