On January 1, 2023, the local minimum wage rate will increase in more than 35 cities across the United States. To prepare:
- Be ready to pay the right minimum wage rate.
Local minimum wage rates are higher than state and federal rates. Employers covered by a local minimum wage law can’t choose which rate to pay – they need to pay the local rate.
For example, Oakland, California, businesses need to pay $15.97 per hour in 2023 rather than the state rate of $15.50 per hour. If a business is in Sunnyvale, California, it is required to pay $17.95 per hour.
- Understand when you are covered by a local minimum wage law.
Local minimum wage rates generally apply to all business located within a certain municipality. For example, businesses in Las Cruces, New Mexico, need to pay the city’s minimum wage rate, as do businesses in Cupertino, California.
However, other stipulations may apply:
— Some local minimum wage laws apply to companies subject to a city’s business license requirements .
— Some local minimum wage laws only apply when an employer has more than a certain number of employees.
— Most local minimum wage laws do not apply to government employers.
— Some local municipal minimum wage laws base coverage on how many hours an employee spends working in that city.
When a law bases coverage on an employee’s work hours in a city, things can get complicated. For example, the Los Angeles minimum wage rate applies to employees who perform at least two hours of work each week in Los Angeles. This could include employees who travel into the city to perform work, such as landscapers or roofers.
Because of this stipulation, businesses in California, and those near other cities with their own minimum wage, should make sure they are paying their employees the required minimum wage rate based on where the employee is performing work.
- Update your posters in all required languages.
When a local minimum wage rate applies, employers need to display a poster showing the current rate. In some cities, these posters must be displayed in multiple languages.
Employers in Fremont, California, for example, must display the minimum wage poster in the top five languages spoken in the city, while businesses in Cupertino, California, need to put up posters in the top three languages in the city.
Companies in El Cerrito need to consider their employee population when displaying posters, and post the minimum wage notice in any language spoken by at least 10 percent of the workforce.
How do I comply with local minimum wage posting requirements?
An employer wondering which posters to display should check their city website for information. A search for “minimum wage” usually brings up rate and posting information.
Employers can also work with a reputable labor law poster update service to get new posters when a city makes a rate change.
Does my city have a January 1, 2023, minimum wage increase?
Employers in these cities will have a minimum wage increase on January 1:
- Daly City
- East Palo Alto
- El Cerrito
- Half Moon Bay
- Los Altos
- Menlo Park
- Mountain View
- Palo Alto
- Redwood City
- San Carlos
- San Diego
- San Francisco
- San Jose
- San Mateo
- Santa Clara
- Santa Rosa
- South San Francisco
- West Hollywood
- Bernalillo County
- Las Cruces
- Santa Fe (March 1)
Key to remember: Covered employers need to pay workers the local minimum wage rate and display updated workplace posters in all required languages when the rate changes.