The State of California and Many California Localities Are Set to Increase the Minimum Wage on January 1, 2021 – Make Sure You Are Ready
California’s stair-step climb to a $15-dollar minimum wage continues. Effective January 1, 2021, the minimum wage for employers with 25 employees or less will increase to $13.00 per hour, and for employers with 26 or more employees, the minimum wage will increase to $14.00 per hour. Employers must remember this increase also affects minimum salary requirements for exempt employees.
While some local minimum wages increase mid-year, many others also increase on January 1 at the same time the State’s increases take effect.
For example, in the cities of Sonoma and Hayward, the minimum wage for employers with 25 employees or less will increase to $14.00 per hour, and for employers with 26 or more employees the minimum wage will increase to $15.00 per hour, effective January 1, 2021.
Likewise, the city of Novato’s minimum wage for employees with 25 employees or less will increase to $14.00 per hour, and for employers with 26 to 99 employees, the minimum wage will increase to $15.00 per hour as of January 1. For employers with 100 employees or more, the minimum wage in the city of Novato will increase to $15.24 per hour, effective January 1, 2021.
The following local minimum wages go into effect on January 1, 2021, regardless of employer size:
Required Minimum Wage as of January 1, 2021, Irrespective of Employer Size
|Belmont||$15.90 per hour|
|Cupertino||$15.65 per hour|
|Daly City||$15.00 per hour|
|El Cerrito||$15.61 per hour|
|Half Moon Bay||$15.00 per hour|
|Los Altos||$15.65 per hour|
|Menlo Park||$15.25 per hour|
|Oakland||$14.36 per hour|
|Petaluma||$15.20 per hour|
|Palo Alto||$15.65 per hour|
|Redwood City||$15.62 per hour|
|Richmond||$15.21 per hour|
|San Carlos||$15.24 per hour|
|San Diego||$14.00 per hour|
|San Jose||$15.45 per hour|
|San Mateo||$15.62 per hour|
|Santa Clara||$15.65 per hour|
|Santa Rosa||$15.20 per hour|
|South San Francisco||$15.24 per hour|
|Sunnyvale||$16.30 per hour|
Employers must also ensure their minimum wage postings are updated appropriately to reflect state and local increases.