Minimum wage is increasing again on January 1st, 2022 in California as well as many other states across the country. In addition to the statewide increases for both small and large employers in California, there are also over 25 individual minimum wage increases for specific cities, counties and/or municipal areas that employers in those areas must meet.
Exempt employees in California may also see their wages go up, as the state is increasing the minimum salary requirements as well. It’s crucial for employers to be informed about their local mandates on top of state and federal requirements to ensure they are providing compliant wages and benefits to all of their employees. Here’s what employers should know about minimum wage requirements in California and beyond for 2022.
California Statewide Minimum Wage and Minimum Salary Requirements
The statewide minimum wage increases are as follows:
- Effective January 1, 2022, minimum wage for small employers (25 or fewer employees) in the state will be $14.00 an hour.
- Effective January 1, 2022, minimum wage for large employers (26 or more employees) will be $15.00 an hour.
The statewide minimum salary requirements are as follows:
- Effective January 1, 2022, the minimum salary requirements for exempt employees of small employers are:
- Weekly: $1,120
- Biweekly: $2,240
- Semimonthly: $2,426.67
- Monthly: $4,853.33
- Annually: $58,240
- Effective January 1, 2022, the minimum salary requirements for exempt employees of large employers are:
- Weekly: $1,200
- Biweekly: $2,400
- Semimonthly: $2,600
- Monthly: $5,200
- Annually: $62,400
California Local and Municipal Minimum Wage
Making matters exceedingly more complex for employers with multiple worksites throughout the state are the individual local mandates for minimum wage compensation. Many cities, counties and municipal areas have their own set of minimum wage ordinances that are above state and federal levels in order to meet the cost-of-living demands in those areas.
Some of the areas with their own minimum wage increases going into effect on January 1, 2022 are:
- Cupertino ($16.40 an hour)
- Daly City ($15.53 an hour)
- El Cerrito ($16.37 an hour)
- Los Altos ($16.40 an hour)
- Oakland ($15.06 an hour)
- Palo Alto ($16.45 an hour)
- Petaluma ($15.85 an hour)
- San Diego ($15.00 an hour)
- San Jose ($16.20 an hour)
- Sunnyvale ($17.10 an hour)
- And more… for a full list of California Minimum Wage Ordinances, download our free 2022 Minimum Wage & General Employment Ordinances E-guide.
Beyond the Golden State
The federal minimum wage is not increasing January, 1st, 2022, however, California is not the only state with minimum wage increases that exceed federal requirements. Colorado, Delaware, Florida, Illinois, Maine, Maryland, New Jersey, New Mexico, Ohio, Virginia, and Washington are among the list of states increasing their minimum wage in 2022. You can get a more detailed look into the minimum wage and local ordinances for your state, including local and county ordinances, when you download our free e-guide.
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Since 1995, Emplicity has provided a smarter, more secure, and integrated platform of employer services to its 300 business clients and their 8,500 employees. As a Professional Employer Organization, or PEO, the California-based HR outsourcing firm simplifies the compliance, administration, and support businesses need in the areas of employee benefits, payroll, and human resources technology.
NOTICE: Emplicity provides HR advice and recommendations. Information provided by Emplicity is not intended as a substitute for employment law counsel. At no time will Emplicity have the authority or right to make decisions on behalf of its clients.