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Minimum Wage Updates: January 2022

New year, new compliance updates. While the federal minimum wage remains at $7.25 for the fourteenth consecutive year, many states and municipal governments are enforcing new minimum wage increases at the start of the year. To ensure you stay compliant, we’ve compiled every jurisdiction upping their minimum wage, tip credits, and/or tipped cash wage rates starting  January 1, 2022.

2022-Compliance

States

In all, 19 states will change minimum hourly rates once the New Year countdowns are over. Some states, such as Florida, will raise their minimum wages around the fall season. We will keep you updated.

StateNew Minimum WageNew Tip CreditNew Tipped Cash Wage
AZ$12.80$3.00$9.80
CA (<25 employees)$14.00
CA (26+ employees)$15.00
CO$12.56$3.02$9.54
DE¹$10.50$2.23$8.27
IL$12.00$4.80$7.20
MA$14.25$8.10$6.15
MD$12.20$8.57$3.63
ME$12.75$6.38$6.38
MN (<$500K in revenue)$8.42
MN ($500K+ in revenue)$10.33
MO$11.15$5.575$5.575
NJ (<5 employees)$11.90$6.77$5.13
NJ (6+ employees)$13.00$7.87$5.13
NM$11.50$8.70$2.80
NY²$13.20$4.40$8.80
OH$9.30$4.65$4.65
RI$12.25$8.36$3.89
SD$9.95$4.975$4.975
VA$11.00$8.87$2.13
VT$12.55$6.27$6.28
WA$14.49

  1. Delaware: The statewide training/youth wage is eliminated as of 12/29/21, so all employees will be compensated at/above state or local minimum wage rates
  2. Hospitality employees only, excluding resorts, fast food, and service employees

Cities, Counties, and Municipalities

A slog of local governments is going beyond state initiatives, upping the minimum wage in their jurisdictions starting January 1.

MunicipalityNew Minimum WageNew Tip CreditNew Tipped Cash Wage
Flagstaff, AZ$15.50 $2.50 $13.00
Belmont, CA$16.20
Burlingame, CA$15.60
Cupertino, CA$16.40
Daly City, CA$15.53
East Palo Alto, CA$15.60
El Cerrito, CA$16.37
Half Moon Bay, CA$15.56
Hayward, CA (<25 employees)$14.52
Hayward, CA (26+ employees)$15.56
Los Altos, CA$16.40
Menlo Park, CA$15.75
Mountain View, CA$17.10
Novato, CA (<25 employees)$15.00
Novato, CA (26-99 employees)$15.53
Novato, CA (100+ employees)$15.77
Oakland, CA$15.06
Oakland CA (hotel only)$16.38/$21.84¹
Palo Alto, CA$16.25
Petaluma, CA$15.85
Redwood City, CA$16.20
Richmond, CA$14.04/$15.54¹
San Carlos, CA$15.77
San Diego, CA$15.00
San Jose, CA$16.20
San Mateo, CA$16.20
Santa Clara, CA$16.40
Santa Rosa, CA$15.85
Sonoma, CA (<25 employees)$15.00
Sonoma, CA (26+ employees)$16.00
South San Francisco, CA$15.80
Sunnyvale, CA$17.10
West Hollywood, CA (<50 employees)²$15.00
West Hollywood, CA (50+ employees)²$15.50
West Hollywood, CA (Hotel workers)³$17.64
Denver, CO$15.87 $3.02 $12.85
Cook County, IL$13.60/$12.00⁴$4.80 $7.20
Portland, ME$13.00 $6.50 $6.50
Rockland, ME$13.00 $6.50 $6.50
Albuquerque, NM$11.50/$10.50⁵$4.60/$3.60⁵$6.90
Las Cruces, NM$11.50⁶$6.30⁶$4.20
Nassau County, NY⁷$15.00 $5.00 $10.00
Suffolk County, NY⁷$15.00 $5.00 $10.00
Westchester County, NY⁷$15.00 $5.00 $10.00
Washington, DC – Ronald Reagan Washington National Airport$14.25 $12.12 $2.13
Washington, DC – Dulles International Airport$14.25 $12.12 $2.13
Seattle, WA (<499 employees)$17.27/$15.72⁸$1.52 $15.75
Seattle, WA (500+ employees)$17.27
SeaTac, WA⁹$17.53

  1. Employees not receiving employer-paid health benefits are paid at the larger rate
  2. Minimum wage rates for West Hollywood, CA will change again 7/1/22
  3. “Hotel workers” applies to anyone working inside a hotel, including restaurant workers
  4. Tipped earners make the lower rate
  5. Employees not receiving benefits are paid at the larger rate
  6. Rate staying the same
  7. Rate changes apply 12/31/21
  8. Employees not receiving employer-paid health benefits OR are paid based on tip credits are paid at the larger rate
  9. Hospitality and Transportation employees ONLY: Hotels with 100+ rooms or 30+ workers, Food Service with 10+ workers

A Note on Tucson, AZ

Tucson, Arizona recently passed legislation which will go into effect on April 1, 2022 that affects:

  • Minimum Wage, which rises to $13.00/hr, with a $3.00 tip credit, and a $10.00 tipped cash wage
  • Work Hours
    • Time that an employer requires the employee to undergo a security screening immediately prior to or following a work shift; to be on the employer’s premises; to be at a prescribed work site; or to be logged in and actively attentive to an employer-provided computer program, phone application, or similar device.
  • Pay Card payments
    • The Act prohibits employers from requiring employees “to receive minimum wage payments using a pay card, reloadable debit card, or similar method that requires the employee to possess a valid social security number.”
  • Minimum Shift Pay
    • Under the Act, “large” employers, defined as those that averaged at least 26 employees (full-time, part-time, or temporary) during the last quarter of the previous year, must pay at least three hours of minimum wage compensation when:
      • an employee is scheduled to work at least three hours;
      • the employee timely reports for duty;
      • the employee is able to work the entire shift; and
      • the employer engages the employee for fewer than three hours; or
      • an employee is scheduled to work at least three hours and the employer cancels the employee’s shift with less than twenty-four (24) hours’ notice.

A Note on West Hollywood, CA

In addition to raised minimum wages mentioned above, the following rules go into effect January 1.

  • All employees will accrue paid time off, eligible for use beginning at the latest six months of employment
    • Full-time (40+ hours per week) employees must accrue at least 96 hours of PTO per year
    • Part-time employees must accrue PTO at a proportional rate as a full-time employee, based on hours worked
    • Monthly cash payments are paid to employees with accrued compensated time over the maximum. The employee can cash out any portion of this extra PTO accrued, but the employer cannot require an employee take the cash payout
  • Full-time employees are also guaranteed at least 80 additional hours per year of sick leave (unpaid time off), used for themselves or a member of the employee’s immediate family. This sick leave is given only when the employee has exhausted all their allotted PTO for the year
  • Service Charges – which are separate line-items in a bill (not a gratuity) associated with employee services and are charged to customers – have their own regulations
    • Service Charges must be disclosed to customers in advance of purchases. If any are optional, the customer has the right to opt out
    • Employers cannot consider service charges when determining whether they paid the employee the minimum wage, as they might be able to under federal and California law. Employers cannot subtract a credit card payment processing fee or cost, and must pay the employee the entire service charge amount
    • Service Charges must be distributed in their entirety to the applicable employee(s) equitably. No amount of a Service Charge may go to the employer, managers, or supervisors
    • Healthcare-related Service Charges can either be:
      • Paid directly to employees as wages
      • Deposited within seven days of collection into segregated accounts controlled exclusively by employees, such as Flexible Spending Accounts, Health Savings Accounts, or Premium-Only Cafeteria Plans

HotSchedules has updated with all the new minimum wage rates, so for customers using Time & Attendance, HotSchedules will make any adjustments to the minimum wage pay at time of payroll calculation. Remember: HotSchedules is your best resource when it comes to staying compliant.

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