California’s stair-step climb to a $15 minimum wage continues. Effective Jan. 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 Jan. 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 Jan. 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 Jan. 1. For employers with 100 employees or more, the minimum wage in the city of Novato will increase to $15.24 per hour, effective Jan. 1, 2021.
The following local minimum wages go into effect on Jan. 1, 2021, regardless of employer size:
City
Required Minimum Wage as of Jan. 1
Belmont $15.90 per hour
Cupertino $15.65 per hour
Daly City $15.00 per hour
El Cerrito $15.61 per hour
Half Moon Bay $15.00 per hour
Los Altos $15.65 per hour
Menlo Park $15.25 per hour
Oakland $14.36 per hour
Petaluma $15.20 per hour
Palo Alto $15.65 per hour
Redwood City $15.62 per hour
Richmond $15.21 per hour
San Carlos $15.24 per hour
San Diego $14.00 per hour
San Jose $15.45 per hour
San Mateo $15.62 per hour
Santa Clara $15.65 per hour
Santa Rosa $15.20 per hour
South San Francisco $15.24 per hour
Sunnyvale $16.30 per hour
Employers must also ensure their minimum wage postings are updated appropriately to reflect state and local increases.