Employers in California need to be aware of the statewide minimum wage increase. In 2023, all employers, regardless of size, must pay a minimum wage of $15.50 per hour. This is a noted change from the previously scheduled increase due to a provision in the law that triggers when inflation is above 7%.
Exempt Employee Minimum Salaries/Wages
Exempt employees’ minimum salary threshold increases to $1,240 per week ($64,480 per year) for all employers, regardless of employee count.
Exempt computer software employees qualify for an increased minimum hourly rate of $53.80 per hour (or an annual salary of $112,065.20). The minimum rate for exempt licensed physicians and surgeons paid hourly will increase to $97.99 per hour.
Local Minimum Wages
In the following cities, the hourly minimum wage will increase beyond the statewide wage:
- Belmont: $16.75
- Burlingame: $16.47
- Cupertino: $17.20
- Daly City: $16.07
- East Palo Alto: $16.50
- El Cerrito: $17.35
- Foster City: $16.50
- Half Moon Bay: $16.45
- Hayward (26 or more employees): $16.34
- Los Altos: $17.20
- Menlo Park: $16.20
- Mountain View: $18.15
- Novato (25 or fewer employees): $15.53
- Novato (26–99 employees): $16.07
- Novato (100 or more employees): $16.32
- Oakland: $15.97
- Oakland (hotels with health benefits): $17.37
- Oakland (hotels without health benefits): $23.15
- Palo Alto: $17.25
- Petaluma: $17.06
- Redwood City: $17.00
- Richmond (without benefits): $16.17
- San Carlos: $16.32
- San Diego: $16.30
- San José: $17.00
- San Mateo City: $16.75
- Santa Clara: $17.20
- Santa Rosa: $17.06
- Sonoma City (25 or fewer employees): $16.00
- Sonoma City (26 or more employees): $17.00
- South San Francisco: $16.70
- Sunnyvale: $17.95
- West Hollywood (hotels): $18.35 (no change)
- West Hollywood (49 or fewer employees): $17.00
- West Hollywood (50 or more employees): $17.50
If you have questions about your area’s minimum hourly wage or salary requirements, consult with your legal representation. You can also sign up for HR Help by Payroll People to get access to qualified and experienced HR professionals who can answer questions and provide solutions.
