Reminder: 2022 California Minimum Wage Increases Impact Exempt and Nonexempt Employees

Berliner Cohen, LLP advises and represents employers on wage compliance within the state of California.

California employers should note upcoming changes to state and local minimum wage laws—many of which take effect on January 1, 2022—that will impact both nonexempt and exempt employees. These changes make California one step closer to achieving the statewide minimum wage goal of $15.00 per hour, which was enacted in the “Fair Wage Act of 2016.”

2022 California State Minimum Wage Rate

Effective January 1, 2022, California's statewide minimum wage will increase to $15.00 per hour for employers with 26 or more employees, and $14.00 per hour for employers with 25 or fewer employees. But note, as explained below, some local ordinances have a higher minimum wage than the state law and some local ordinances remove any distinction in minimum wage based on employer size. Employers must comply with the local minimum wage rate if the local rate exceeds the state minimum wage rate.

2022 California Local Minimum Wage Rate Ordinances

Additionally, the following cities and counties have enacted their own local minimum wage rates increases that go into effect on January 1, 2022, or went into effect on July 1, 2021 and are differentiated by employer size.

Local Minimum Wage Rate Increases Chart

Locality	Minimum Wage (25+ Employees)	Minimum Wage (Small Employers with <25 Employees)	Effective Date
Alameda	$15.00/hour	$15.00/hour	July 1, 2020
Berkeley	$16.32/hour	$16.32/hour	July 1, 2021
Daly City*	$15.53/hour	$15.53/hour	January 1, 2022
El Cerrito*	$16.37/hour	$16.37/hour	January 1, 2022
Emeryville	$17.13/hour (CPI)	$17.13/hour (CPI)	July 1, 2021
Fremont	$15.25/hour	$15.00/hour	July 1, 2021
Hayward	$15.56/hour (CPI)	$14.52/hour (CPI)	January 1, 2022
Milpitas	$15.65/hour	$15.65/hour	July 1, 2021
Oakland*	$15.06/hour	$15.06/hour	January 1, 2022
*Oakland (Hotel Workers w/Health Benefits)	$16.38/hour	$16.38/hour	January 1, 2022
*Oakland (Hotel Workers w/out Health Benefits)	$21.84/hour	$21.84/hour	January 1, 2022
Palo Alto	$16.45/hour	$16.45/hour	January 1, 2022
San Carlos	$15.77/hour	$15.77/hour	January 1, 2022
San Francisco	$16.32/hour	$16.32/hour	July 1, 2021
San Jose	$16.20/hour	$16.20/hour	January 1, 2022
San Leandro	$15.00/hour	$15.00/hour	July 1, 2021
Santa Clara	$16.40/hour	$16.40/hour	January 1, 2022
Santa Rosa*	$15.85/hour	$15.85/hour	January 1, 2022
Sunnyvale	$17.10/hour	$17.10/hour	January 1, 2022
Long Beach (Hotel Workers)	$15.69/hour	$15.69/hour	July 1, 2021
Los Angeles* ** (City and County)	$15.00/hour	$15.00/hour	July 1, 2020 & July 1, 2021, Respectively
Malibu	$15.00/hour	$15.00/hour	July 1, 2020 & July 1, 2021, Respectively
Pasadena*	$15.00/hour	$15.00/hour	July 1, 2021
San Diego	$15.00/hour	$15.00/hour	January 1, 2022
Santa Monica	$15.00/hour	$15.00/hour	July 1, 2021
Santa Monica (Hotel Workers)	$17.64/hour	$17.64/hour	July 1, 2021
Novato	$15.53/hour ($15.77/hour for employers with 100+ employees)	$15.00/hour	January 1, 2022
South San Francisco	$15.80/hour	$15.80/hour	January 1, 2022
Belmont*	$16.20/hour	$16.20/hour	January 1, 2022
Burlingame*	$15.60/hour	$15.60/hour	January 1, 2021
Cupertino*	$16.40/hour	$16.40/hour	January 1, 2021
East Palo Alto*	$15.60/hour	$15.60/hour	January 1, 2021
Half Moon Bay*	$15.56/hour	$15.56/hour	January 1, 2021
Los Altos*	$16.40/hour	$16.40/hour	January 1, 2021
Menlo Park*	$15.75/hour	$15.75/hour	January 1, 2021
Mountain View*	$17.10/hour	$17.10/hour	January 1, 2021
Redwood City*	$16.20/hour	$16.20/hour	January 1, 2021

*As of July 1, 2021, the city will make no distinction between smaller and larger businesses. Only one minimum wage rate will apply.

2022 California Exempt Employees Minimum Salary Increases

For workers to qualify as exempt employees, California requires that they perform exempt duties more than 50 percent of their work time; and that exempt executive, administrative, and professional employees earn a salary of no less than two times the state minimum wage for full-time employment. The minimum annual salary is based on the current state minimum wage, calculated as follows: (minimum wage x 2) x 2,080 hours. Effective January 1, 2022, the minimum salary threshold for these exemptions are:

• Employers with 1-25 employees: $58,240 per year.
• Employers with 26 or more employees: $62,400 per year.
• Computer professionals: $50.00 per hour; $8,679.16 per month; $104,149.81 per year.
• Licensed physicians and surgeons: $91.07 per hour.

Employers should review compensation for their exempt employees to ensure that the appropriate minimum salary level is satisfied. If the salary level is not satisfied, the employer should consider increasing compensation to meet the minimum, or reclassify the employee as nonexempt.

Berliner Cohen, LLP advises and represents employers on wage compliance within the state of California. For questions about employer wage laws or other matters, reach out to our experienced Labor & Employment Department at 408.286.5800.