The state of California has some significant minimum wage changes for 2022. According to HR Daily Advisor, the minimum wage for the new year will increase to $15.00 per hour for those with 26 employees or more and $14.00 per hour for companies with 25 employees or less. For those with fewer than 26 employees, you will also see that the minimum rate will increase to $15.00 in 2023.
Besides the minimum wage laws in California, the state also has various cities that have higher minimum rates for employees working within their local jurisdictions. If an employee is subject to more than one minimum wage (such as federal, state, and local), the employer should pay the wage that is the most generous for the location in which they work.
For example, if an employee works for a larger employer and is located in San Carlos, CA which has a minimum wage of $15.77 and the state requires a minimum rate of $15.00, the employer should pay $15.77 per hour for all hours worked in San Carlos since the local minimum is higher than the state and federal minimum wage. However, if the same employee works in a location without a higher jurisdictional rate, those hours can be paid at the state minimum.
As California business owners, it is important to ensure that you are paying your employees correctly so be sure to review the following local minimum wage changes occurring in your state. Please review the following locations with higher minimum wages to be sure you are in compliance:
| Jurisdiction: | Minimum wage rate effective January 1, 2022: |
| Belmont, CA | $16.20 |
| Burlingame, CA | $15.60 |
| Cupertino, CA | $16.40 |
| Daly City, CA | $15.53 |
| El Cerrito, CA | $16.37 |
| Half Moon Bay, CA | $15.56 |
| Hayward, CA | $14.52 (25 or fewer employees)$15.56 (26 or more employees) |
| Los Altos, CA | $16.40 |
| Menlo Park, CA | $15.75 |
| Mountain View, CA | $17.10 |
| Novato, CA | $15 (1-25 employees)$15.53 (26-99 employees)$15.77 (100 or more employees) |
| Oakland, CA | $15.06 |
| Palo Alto, CA | $16.45 (updated) |
| East Palo Alto, CA | $15.60 |
| Petaluma, CA | $15.85 |
| Redwood City, CA | $16.20 |
| Richmond, CA | $15.54Note: Under city law, employers that contribute at least a certain amount towards an employee medical benefits plan may be able to take a limited credit toward the minimum wage. Remember, employers must also comply with the state minimum wage. If the state minimum wage is higher than the applicable city rate with the credit, employers must pay at least the state minimum wage. |
| San Carlos, CA | $15.77 |
| San Diego, CA | $15.00 |
| San Jose, CA | $16.20 |
| San Mateo, CA | $16.20 |
| Santa Clara, CA | $16.40 |
| Santa Rosa, CA | $15.85 |
| Sonoma, CA | $15 (25 employees or less)$16 (26 employees or more) |
| South San Francisco, CA | $15.80 (updated) |
| Sunnyvale, CA | $17.10 |
| West Hollywood, CA | $15.00 (49 or fewer employees)$15.50 (50 or more employees) |
If you would like more details on local minimum wage increases for the new year, please go to https://sbshrs.adpinfo.com/blog/new-minimum-wages-for-2022.
