[co-author: CJ Sjulin]
Local Minimum Wage Increases Go Into Effect on July 1, 2023
On July 1, 2023, a number of local governments throughout California will raise their minimum wage. In the City of Los Angeles, the new rate is $16.78/hour ($19.73/hour for hotel employees at hotels with 60 or more guest rooms).
The new rate for employees in Malibu, Santa Monica, and unincorporated areas of Los Angeles County is $16.90/hour ($19.73/hour for hotel employees in Santa Monica).
Below is a summary of the local minimum wage rates which are increasing on July 1, 2023:
As a reminder, employers in these cities should update their minimum wage postings in the workplace to reflect local increases.
Employers whose employees work in localities that have not set their own minimum wage must continue to apply the State of California’s minimum wage requirement, which is currently $15.50/hour for all employers, regardless of size. For employees working in cities which require a higher minimum wage than the state minimum wage, including all of the cities listed above, employers should pay the higher city minimum wage.
As we shared in our 2022 year-end client alert, an increase in the municipal/local minimum wage does not affect the minimum wage that is to be used for the salary-basis test for California’s professional, administrative and executive exemption classifications. As a reminder, to satisfy the administrative, executive, and professional exemptions from overtime, California employers must pay exempt employees a salary that is at least twice the state minimum wage in addition to meeting the other requirements for those exempt classifications.
