California’s Increasing Minimum Wage – State and Local Deadlines

On May 12, 2022, Governor Newsom announced that the state minimum wage could increase to $15.50 per hour on January 1, 2023 due to inflation.  However, many California employers are already facing minimum wage increases much earlier – as many local jurisdictions throughout California are raising their minimum wage rates on July 1, 2022.  Here is a list of some local city and counties in Southern California that are set to increase minimum wage rates on July 1, 2022:

Local Government	Minimum Wage Rate as of July 1, 2022	Resources
Los Angeles City	$16.04	https://wagesla.lacity.org/
Los Angeles County	$15.96	https://dcba.lacounty.gov/minimum-wage-for-businesses/
Santa Monica	$15.96	https://www.santamonica.gov/minimum-wage
Malibu	$15.96	https://www.malibucity.org/793/Minimum-Wage
Pasadena	$16.11	https://www.cityofpasadena.net/planning/code-compliance/minimum-wage-ordinance/
West Hollywood	$16.50 for employers with 50 + employees; $16.00 for employers with fewer than 50 employees; $18.35 for hotel employees	https://www.weho.org/business/operate-your-business/minimum-wage

As a reminder, the City of San Diego raises its minimum wage rate on January 1 of each year.  Since January 1, 2022, the City of San Diego’s minimum wage is set at $15.00 per hour.  More information about San Diego’s minimum wage rate can be found here: https://www.sandiego.gov/compliance/minimum-wage.  Also, employers throughout California must review their local requirements – this is just a summary of Southern California increases.

Here are five items employers should consider prior to the July 1 deadline:

1. Map locations to ensure the company is paying the required minimum wage.
2. Ensure employees who travel and work in other cities/counties are being paid the appropriate minimum wage.
3. Ensure pay stubs reflect the increased minimum wage (as well as other requirements).
4. Update posters to ensure compliant posters are used in the workplace.
5. Update notices to employee to reflect increased wage rates.

Notices to Employee required under Labor Code section 2810.5 must be issued to all nonexempt employees when they start work.  The wage information section must reflect the higher minimum wage for minimum wage workers as of July 1, 2022.  Accordingly, the overtime rates of pay section of the Notice must also be updated to reflect the higher rates as a result of the higher minimum wage requirements.