On July 1st, 2023, several California local minimum wage increases went into effect. As of January 2023, the California state minimum wage rate is $15.50 for all employers. However, many cities and counties within the state have set a higher minimum wage rate for employers within their jurisdiction. Additionally, other states had minimum wage increases that went into effect on July 1. Businesses in states that have minimum wages below the federal minimum wage, meanwhile, must pay the federal rate set by the Fair Labor Standards Act (FLSA). The FLSA is the country’s primary federal wage and hour law and one of five main employment laws all businesses must know. Failure to do so can result in expensive settlements against them. In April, a court ordered a restaurant owner to pay over $911 thousand to settle FLSA violations resulting in wage theft.
California Local Minimum Wage Increases
California local minimum wage increases usually occur each year. In brief, the local minimum wage increases according to a municipality’s local consumer price index. Businesses in several municipalities throughout the state should expect the applicable minimum wage rate to increase on either January 1 or July 1 of each year. For this reason, employers should ensure they always have the most up-to-date local minimum wage notices posted at their worksite. Local minimum wage increases went into effect on July 1 in the following California localities:
- Alameda – $16.52
- Berkeley – $18.07
- Emeryville – $18.67
- Fremont- $16.80
- Los Angeles – $16.78
- Los Angeles County (unincorporated areas) – $16.90
- Malibu – $16.90
- Milpitas – $17.20
- Pasadena – $16.93
- San Francisco – $18.07
- Santa Monica – $16.90
- West Hollywood – $19.08
Meanwhile, even higher minimum wage rates effective July 1 apply to specific categories of workers. Often these include hotel workers in various cities and counties. For example, in Los Angeles, nonexempt employees in hotels that contain 60 or more rooms now must be paid the minimum rate of $19.73. Hotel workers in Long Beach and West Hollywood saw similar local minimum wage increases. Importantly, if multiple rates apply to workers in a particular municipality, employers must pay the highest rate applicable.
State Minimum Wage Increases Effective July 1st, 2023
Also, on July 1st, 2023, several state minimum wage increases took effect. In Washington D.C., the minimum wage increased from $16.10 to $17.00. The Nevada state minimum wage increased from $9.50 (with healthcare benefits) and $10.50 (without healthcare benefits) to $10.25 and $11.25, respectively. Finally, the Oregon state minimum wage increased from $13.50 to $14.20.
Municipalities in states other than California also had local minimum wage increases effective July 1. In Chicago, Illinois, the minimum wage is $15 (for 4-20 employee businesses) and $15.80 (for 21+ employee businesses). Montgomery County, Maryland, minimum wage increased to $14.50 (1-10 employees), $15.00 (11-50 employees), and $16.70 (51+ employees). Lastly, St. Paul, Minnesota, increased its minimum wage to $11.50 (5 or fewer employees), $13 (6 -100 employees), $15.00 (101+ employees), and $15.19 (for over 10,000 employees).