Minimum Wages on the Rise Again As We Continue To Face Increasing Inflation

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Inflation has been a major topic in the news, but it impacts far more than just the prices consumers pay for everyday goods. All employers in California should be aware that the current high rate of inflation has triggered a substantial increase in the statewide minimum wage; even in many localities where the minimum wage is set even higher.

Earlier this year, we published an article about the increase to California’s statewide minimum wage to $15.00 (for employers with 26 or more employees) and local-level (city and county) increases above the statewide minimum wage.

Now, with the heavy rise of inflation, these recent increases are set to rise even more. Last month, Governor Gavin Newsome announced that California’s statewide minimum wage is projected to increase to $15.50 per hour, starting January 1, 2023. This recent increase is attributable to inflation. Employers should prepare to increase wages to meet this minimum.

Moreover, many localities in California have decided to implement further minimum wage increases to keep up with inflation. Many of these go into effect on July 1, 2022, so it is important that employers in these localities ensure they timely implement any required increases for their current minimum wage employees.

Failure to do so could subject the employer to liability for wage and hour claims, and representative claims under the Private Attorneys General Act. Employers must also ensure their minimum wage bulletin postings are updated appropriately to reflect state and local increases.

Below is a table of California localities that will implement a higher minimum wage as of July 1, 2022.

City or County New Minimum Wage Rate
Alameda $15.75
Berkeley $16.99
Emeryville $17.68
Fremont $16.00
Los Angeles City $16.04
Los Angeles County (Unincorporated Areas) $15.96
Malibu $15.96
Milpitas $16.40
Pasadena  $16.11
San Francisco City and County $16.99
Santa Monica $15.96

If you need further advice about these upcoming changes to California law, the experienced attorneys at MNK Law can help. Please contact us at info@mnklawyers.com.

This material is provided for informational purposes only. It is not intended to constitute legal advice, nor does it create a client-lawyer relationship between MNK Law and any recipient. Recipients should consult with counsel before taking any actions based on the information contained within this material.

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