Nevada, California Cities Announce Minimum Pay Hikes

Nevada and four Californian cities have joined a growing list of U.S. state and local jurisdictions that have announced upcoming minimum pay hikes for 2023. The cities of Pasadena, West Hollywood, Fremont, Los Angeles County in CA, and the state of Nevada have enacted laws that require all employers in their jurisdictions to increase hourly compensation to a specific minimum rate, effective July 1, 2023. Employers must also notify the public accordingly through conspicuous posters at their workplaces.

Here’s a look at some of the announced minimum wage requirements for hourly workers in these areas:

Pasadena, CA ($16.93/Hour)

Starting July 1, 2023, all Pasadena employers must pay their workers at least $16.93 per hour. The new rates will become effective exactly 7 years after the city’s minimum wage ordinance took effect on July 1, 2016.  They apply to all workers in the city who have worked at least 2 hours a week.

Nevada ($10.25/Hour with Health Benefits, $11.25 Without Coverage)

Nevada’s upcoming minimum wage increment for its workers is two-tier. If you’re a Nevada-based employer, the state requires you to raise your hourly rate to at least $10.25 for employees that receive health benefits and $11.25 for workers without this coverage. The state-mandated rates apply from July 1, 2023, through June 30, 2024.

Los Angeles County, CA ($16.90)

July 1, 2023, is the day you should start paying your Los Angeles County hourly employees a minimum wage of $16.9 per hour. The required basic hourly pay increases by $0.94 from the $15.96 rate effective last year on July 1st.

Fremont, CA ($16.80/Hour)

Fremont is another Californian city that recently announced it would increase the minimum hourly compensation for its workers starting July 1, 2023. If you operate a business in the state, prepare to pay your hourly workforce at least $16.80 per hour.

West Hollywood, CA ($19.08/Hour)

Of the five jurisdictions covered in this article, West Hollywood, CA, has the highest minimum wage increase for July 1, 2023. As with all other employers in the city, you must start paying your hourly employees $19.08 per hour at the very least when the rate takes effect. Unlike the city’s previous pay hikes, the new rate applies to all employers regardless of industry type and business size. It will be up for renewal next year based on the consumer price index (CPI-W) adjustment.

Note that, throughout California or Nevada, a tip credit won’t count toward fulfilling your minimum wage obligations. You must pay your employees their deserved minimum rate regardless of the value of tips they may have received on duty. Remember to follow applicable posting rules for the new wage rate adjustments at your worksite or office.

Navigate Minimum Wage Hikes with McKnight Associates!

Has any state or city-mandated minimum wage hike affected your payroll plans in the recent past? If so, feel free to share your concerns with the experts at McKnight & Associates. We have the expertise to help your organization efficiently manage any voluntary or required compensation increases. Contact us to learn more.