Mid-Year CA Minimum Wage Increase

As we all know, California’s statewide minimum wage increased to $14 per hour for employers with 26 or more employees and $13 per hour for employers with 25 or fewer employees. But note, as described below, some localities have a higher minimum wage than the state minimum and some local ordinances eliminate any difference in minimum wage based on employer size.

Of course, we are now one step closer to its goal of a $15 per hour minimum wage, something we’ve all been hearing on the news. Although right now, it’s pretty difficult to hire someone at minimum wage despite the increase due to the continuing unemployment benefit supplement. That additional benefit ends September 6, although half of US states have already eliminated the supplement.

2021 California Local Minimum Wage Changes

On top of California’s minimum wage increase, many cities and counties have implemented their own minimum wage ordinances that exceed state requirements. The local ordinance, if higher, always supersedes the state’s minimum wage.

Keep in mind, if you have employees that work in the field and work in one of these cities or counties, you will need to abide by the local minimum wage rules for the time the employees are working in the area.

The chart below shows changes to local minimum wage rates throughout California set to take effect on July 1, 2021.