New California Minimum Wage Rates

Jun 30, 2022

The minimum wage for unincorporated areas of Los Angeles county will increase on July 1, 2022. According to the Los Angeles County’s Chief Executive, their new wages are based on a consistent 6.4 % rate increase, determined by the Bureau of Labor Statistics’ Consumer Price Index. The minimum wage will differ among cities.

According to Mayor Eric Garcetti, the minimum wage rate for the Los Angeles area will increase from $15 to $16.04 per hour. Announced on February 1, the increase is calculated from the Los Angeles metropolitan area Consumer Price Index and will increase annually. Mayor Garcetti’s efforts to establish fair wages are fueled by his determination to increase economic viability. Following the Los Angeles Municipal Code, Garcetti commented on his interest to “end poverty wages in Los Angeles,” noting that the “fight for better wages is far from finished.”

In other areas, the rate is different. The new wage will be $15.96 per hour in the unincorporated areas of Los Angeles County. The Minimum Wage Ordinance in 2016 established specific criteria to be met and is still in effect in 2022. For example, Los Angeles employers and workers in unincorporated areas must perform at least two hours of work a week, and employers must post an updated bulletin of new wage rates in a prominent location along with other organization postings. In addition, it is illegal for employers to retaliate, and employees are protected regardless of their immigration or work status.

Rate increases in other California cities include Berkeley ($16.32 to $16.99), Emeryville for small and large businesses ($17.13 to $17.68), Malibu ($15.00 to $15.96) for employers with 25 or fewer employees, Milpitas ($15.65 to $16.40), Pasadena ($15.00 to $16.11) for small businesses, San Francisco ($16.32 to $16.99), Santa Monica ($15.00 to $15.96) for small and large businesses.


CA minimum wages


California can be proud to be the first state to establish a $15 per hour minimum wage. It is also the most complex. With the new increase, jurisdictions are establishing new laws that will constantly change locally. While the federal minimum wage has not moved from $7.25 in more than a decade, some new California rates are determined by regular schedules, and others are determined by Consumer Price Index (CPI). Rates are updated on January 1 and July 1, and there are no separate rates for employees who receive tips. A further list of cities’ rate increases is here.

The California minimum wage may go even higher, projected to rise from $15 to $15.50 in January 2023. This announcement came with Governor Newsom’s proposed $18.1 Billion Inflation Relief Package with the projection that inflation would reach 7%. With the continued inflation problems due to the pandemic, wages must also continue to increase. So far, this is what is happening.

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