California Employers Face Minimum Wage Increases This July 1

With the Consumer Price Index recently showing the largest spike in 30 years, California employers need to brace themselves and prepare for the minimum-wage hikes going into effect in several cities across the state on July 1, 2022. If you do business in California, you need to educate yourself on these increases and prepare now.

Which Cities Are Impacted?

The following increased minimum wage rates will go into effect on July 1:

• Alameda: $15.75/hour
• Berkeley: $16.99/hour
• Emeryville: $17.68/hour
• Fremont: $16.00/hour
• Long Beach: $16.73/hour for hotel workers; $16.55 for concessionaire workers
• Los Angeles (City): $16.04 for all employers
• Los Angeles (County, unincorporated): $15.96/hour
• Malibu: $15.96/hour
• Milpitas: $16.40/hour
• Pasadena: $16.11/hour
• San Francisco (City/County): $16.99/hour
• Santa Monica: $15.96/hour
• West Hollywood: $16.50/hour for employers with 50+ employees; $16.00/hour for employers with less than 50 employees; $18.35/hour for hotel workers

These local minimum wage increases do not impact the salary threshold requirement for many exempt employees. But non-exempt employees must be paid at least the applicable minimum wage, generally based on where the employee performs the work.

New West Hollywood Paid Sick Leave Ordinance

Effective July 1, full-time employees for all businesses in West Hollywood must be provided at least 96 compensated hours and 80 uncompensated hours per year for sick leave, vacation, or personal necessity. Part-time employees must be provided compensated and uncompensated hours in increments proportional to that accrued by someone who works 40 hours per week.

If you have employees working in West Hollywood, contact your Fisher Phillips attorney for more information.

IRS Increases Mileage Rate

As noted in our recent Insight, employers should also be aware that the IRS increased the optional standard mileage rate for business travel from July through December 2022 to 62.5 cents per mile.

Conclusion

As employers continue to adjust to inflation in 2022, Fisher Phillips is here to help employers navigate these changing times. Please reach out to your Fisher Phillips attorney, the authors of this Insight, any attorney in our California offices, or any attorney in our Wage and Hour Practice Group with any questions or to discuss implementation of any of the above.

The authors would like to acknowledge Law Clerk Jacob Axelrad for his significant contributions to this Insight.