© 2020 American Payroll Institute, Inc. June 29, 2020 Volume 22 Issue 13 State and Local Minimum Wage Rate Changes Effective July 1 Mtopic inimum wage laws and ordinances remain a hot in 2020. In the absence of federal legislation to increase the federal minimum wage ($7.25 an hour), many states, cities, and counties have enacted their own minimum wage laws and ordinances. Several states and localities have minimum wage rates that take effect July 1. Due to the COVID-19 pandemic, two cities in California Hayward and San Carlos have delayed the effective date of their respective minimum wage ordinances to January 1, 2021 (both previously scheduled to begin on July 1 see PAYSTATE UPDATE, Issues 7 and 11, Vol. 22). Remember that changes to minimum wage rates can impact state garnishment limits and state white collar exemption salary levels (see APA’s Guide to State Payroll Laws, §§7.1 and 1.3). Be sure to check for these indirect changes with every state and local minimum wage increase. The following chart provides state, county, and city minimum wage rates and tip credit amounts that are changing effective July 1, 2020, and July 1, 2021 (unless other dates are indicated). Minimum wage rates scheduled to be indexed for inflation in 2021 are shown as the current minimum wage rate plus CPI (consumer price index). Definitions are included in the footnotes. City/County/State Current Minimum Wage Eff. 7-1-20 2021 Minimum Wage Eff. 7-1-21 Current Tip Credit Eff. 7-1-20 2021 Tip Credit Eff. 7-1-21 Alameda, CA $15.00 $15.00 (no change) prohibited Berkeley, CA $16.07 $16.07 + CPI prohibited Emeryville,1 CA $16.84 all employers $16.84 + CPI all employers prohibited Fremont,2 CA $15.00 large employers $15.00 + CPI large employers prohibited $13.50 small employers $15.00 small employers Long Beach, CA $15.47 hotel workers $15.47 + CPI hotel workers prohibited Los Angeles City2 and county,2 CA $15.00 large employers $15.00 large employers prohibited $14.25 small employers $15.00 small employers $17.13 hotel workers4 $17.13 + CPI hotel workers4 Malibu,2 CA $15.00 large employers $15.00 large employers prohibited $14.25 small employers $15.00 small employers Milpitas, CA $15.40 $15.40 + CPI prohibited Novato, CA $15.00 very large employers $15.00 + CPI* very large employers *eff. 1-1-21 prohibited $14.00 large employers $15.00* large employers *eff. 1-1-21 $13.00 small employers $14.00* small employers *eff. 1-1-21
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