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:

Employers must also ensure their minimum wage postings are updated appropriately to reflect state and local increases.

Jackson Lewis will continue to track minimum wage increases and changes in California and nationally. If you have questions about payment of wages, reach out to a Jackson Lewis attorney to discuss.