CORRECTION; Original article stated the Minimum wage in January 1, 2023 will be $16.25. The correct wage is $16.30
SDEA if often put in the position of having to deliver news that is not welcome by all and I fear this may be one of those times.
Last week, the City of San Diego notified employers that effective January 1, 2023, the city minimum wage will increase to $16.30/hour. The city’s minimum wage is applicable to any employee who performs at least two (2) hours of work in one or more calendar weeks of the year within the geographic boundaries of San Diego. This applies to all companies in the geographical boundaries, regardless of company size.
For those companies that do not fall within the city boundaries, California’s minimum wage applies; this too will increase effective January 1, 2023 to $15.50 for all businesses, regardless of employee count.
Because the state minimum wage is tied to minimum salary requirements for exempt employees, this too increases effective January 1, 2023. The minimum salary that can be paid to a properly classified exempt employee (one who meets the salary test AND the duties test) must be equal to two times the current minimum wage which will equal $64,480 effective January 1, 2023.
While employers do not have any options other than to pay an employee a least minimum wage, an employer, who may consider this increase a financial hardship, could change an exempt employee to a non-exempt hourly employee and pay them on an hourly basis, including any applicable overtime. This should be done on a consistent basis in order to avoid any discrimination issues.
If you have questions or need assistance, please give us a call at 858-505-0024.
To download the new San Diego minimum wage poster, CLICK HERE
This poster needs to be posted if you have workers in San Diego, even if you do not have minimum wage workers.
SDEA members are provided unlimited consultation from our experienced HR Consultants, give us a call. 858-505-0024
Remember, We are not just her for you, we are HeRe WITH you.