California State and Local Minimum Wage Rates 2021

Updated December 19, 2021

The California state minimum wage increased on January 1, 2021 – and many California local minimum wage rates increased on July 1, 2021.

Here is everything you need to know:

California State Minimum Wage 2021

California minimum wage 2021

Effective January 1, 2021 for employers with 25 or less employees, the state of California minimum wage is $13 per hour. Businesses with 26 or more employees have a minimum wage of $14 per hour.

Looking ahead, California employers can anticipate the following rate increases in 2022 and future years:

DateLarge Employers
(26+ Employees)
Small Employers
(25 or fewer Employees)
January 1, 2021$14$13
January 1, 2022$15$14
January 1, 2023Adjustment for inflation$15

An employer with 26 or more employees at any time during a pay period should apply the higher minimum wage to all employees for that pay period. If an employer’s workforce falls below 26 employees the employer does not need to automatically lower their minimum wage rate.

However, if the minimum wage is reduced because the threshold falls below 26 employees, the employer must notify the affected employees in advance before reducing their wages.

Important to note, there are Minimum Salary Exemptions for California such as computer software professionals. To learn about any of these exemptions in California, or any state, please message us.

California Local Minimum Wage 2021

Local jurisdictions – Counties or Cities – may have their own minimum wage that may trump the State minimum wage. Employers must pay the rate that benefits the employee. Please check the tables below for more information.

Effective Jan 1, 2021

JurisdictionLarge Employers
(26+ Employees)
Small Employers
(25 or fewer Employees)
+ Consumer Price Index (“CPI”)
+ Consumer Price Index (“CPI”)
Los Angeles
(City & Unincorporated Areas
of County)
($15.24 for Very Large Employers
with 100+ Employees)
San Francisco$16.07$16.07
South San Francisco$15.25$15.25
San Leandro$15.00$15.00
Santa Monica$15.00$14.25
Santa Rosa$15.20$15.20

Effective Jul 1, 2021

JurisdictionLarge Employers
(26+ Employees)
Small Employers
(25 or fewer Employees)
Alameda [source]$15.00$15.00
Berkeley [source]$16.32$16.32
Emeryville [source]$17.13
+ Consumer Price Index (“CPI”)
+ Consumer Price Index (“CPI”)
Fremont [source]$15.25$15.00
Los Angeles [source]
(City & Unincorporated Areas
of County)
Malibu [source]$15.00$15.00
Milpitas [source]$15.65$15.65
Novato [source]$15.00
($15.24 for Very Large Employers
with 100+ Employees)
Pasadena [source]$15.00$15.00
San Francisco [source]$16.32$16.32
South San Francisco [source]$15.25$15.25
San Leandro [source]$15.00$15.00
Santa Monica [source]$15.00
(plus temporary $5.00 ‘Hero pay’
for some essential workers)
Santa Rosa [source]$15.20$15.20

To keep your business up to date with the current Minimum Wage in your local jurisdiction or state, why not use our Labor Law Poster Service – you’ll be updated automatically based on your state, industry, and employee size.

Selected Other States

Hawaii Minimum Wage 2021

Hawaii minimum wage 2021

Since January 1, 2018 the minimum wage in Hawaii is $10.10 per hour.

Arizona Minimum Wage 2021

Arizona minimum wage 2021

Effective January 1, 2021, through December 31, 2021, the minimum wage in Arizona is $12.15 per hour. It is due to increase each year by the cost of living.

Other States

We are currently servicing small businesses, CPAs and accountants in most states and are constantly expanding. Please reach out to us if you don’t see your state listed.

Always double-check the minimum wage in your area, as governed by the Fair Labor Standards Act (FLSA), to verify this article has the most current information.

Things can change rapidly during a pandemic. We are here to help you through these changing regulations.

Share This:
Sign up for our Newsletter
Payroll News You Can Use

We will never share your personal information.
View our privacy policy

Contact Us Now for Your Free Quote!
What our customers say about us

Gordon and his team run this first class operation. Why go with the big box ADP when you can have professional, personalized services at a lower cost? It’s a no brainer.

They take care of my payroll needs for multiple locations so I can focus on growing my business. Gordon promptly responds to all my questions and concerns. He also helps me take care of additional issues like workers’ comp audits and taxes.

Julie L. via Yelp

I wish I would have known about them years ago. You call you get to talk to Gordon, you email your data into him and it gets done… like a smooth-running machine. I strongly suggest you call Gordon and start having him handle your payroll needs today.

We as business owners have enough to do without having to deal with Federal and State agencies. Put your efforts into your business that you know best, that is what makes you money.

Sharon D. via Google

We’ve been with this company for almost a year and could not be more pleased. Gordon keeps us in compliance with all of the complex employment and tax rules. He is extremely patient, committed and giving of his time and knowledge without reservation. If we need help understanding something he is always there for us.

If you’re thinking about getting someone to take over your payroll, give Gordon a call. He is more than affordable and worth every penny.

Kathleen M. via Yelp

I had stayed with a large payroll company because I thought it was difficult to change. Once my friend recommended Gordon, it was so fast and easy to switch! And my fees were cut in HALF!

And I pay nothing when they file quarterlies. And he’s a million times more responsive.

Arlene M. via Email
Contact Us
Content copyright 2022. Pacific Payroll Group. All rights reserved.
Call Now ButtonCall Us For a Free Quote!