Local Minimum Wage Frequently Asked Questions
The new local ordinance accelerates the minimum wage-rate increase already called for under State law. For large employers, defined as those with 26 or more workers, the current minimum wage is $15.56. Beginning January 1, 2023, the minimum wage rate for large employers will increase to $16.34.
Thereafter, the Hayward minimum wage rate for large employers will be adjusted upward annually each January 1 based on the Consumer Price Index (CPI) with a maximum of 5% increase.
For small employers, defined as those with 25 or fewer workers—the Hayward minimum wage rate is $14.52 per hour as of January 1, 2022. Beginning on January 1, 2023, the minimum wage rate for small employers will be $15.50 as directed by the State of California. Future increases for small businesses will be consistent with State law.
Current State law caps the California minimum wage at $15, however a provision in the law allows wages of at least $15 to be raised annually for any increase in inflation of over 7% as measured by the national Consumer Price Index. Gov. Newsom announced that employers of every size will begin paying $15.50 beginning Jan. 1, 2023.
The minimum wage established by Federal, State and local government law sets the lowest wage an employer may legally pay to workers. As of January 1, 2020, California law requires the minimum wage for all industries to be no less than $12.00 per hour for businesses with less than 25 employees and $13.00 per hour for businesses with 26 or more employees. The Federal minimum wage for covered nonexempt employees has been $7.25 per hour since July 24, 2009.
The current minimum wage set by the State of California for all industries as of January 1, 2023 is $15.50 per hour for all businesses. After January 1, 2024, future wage increases are tied to inflation, reflecting increases in the Consumer Price Index (CPI), up to 3.5% per year.
At their October 15, 2019 City Council meeting, the City Council discussed interest in implementing a $15 per hour minimum wage by 2022 or earlier. At the April 7, 2020 City Council meeting, the Council adopted the local minimum wage that went into effect January 1, 2021.
A Local Minimum Wage applies to all businesses within the geographic boundaries of Hayward and any employee working at least two or more hours per week.
Small Businesses are defined as those having 25 employees or fewer, including persons employed outside the city.
Large Businesses are defined as having 26 or more employees, including persons employed outside the city.
The size of the employer is determined based on the total number of employees employed by the business that work both within the City of Hayward and those that work outside the city.
Of the 100 cities located in the nine-county region considered the Bay Area, 25 have adopted a Local Minimum Wage. Six (6) of the 14 cities in Alameda County have a local minimum wage including: Alameda, Berkley, Emeryville, Fremont, Oakland, and San Leandro.
The City Council adopted a local minimum wage on April 14, 2020. The first increase took place January 1, 2021. Subsequent increases will occur each January 1, per the ordinance requirements for small and large employers.
If your employer is currently not paying the State required minimum wage, you can contact The State of California Department of Labor at www.labor.ca.gov to file a claim. If the City of Hayward adopts a local minimum wage, the City of Hayward will establish a point of contact for possible violations once the local minimum wage goes into effect.
No, non-profit organizations are not exempt from the minimum wage requirements. All businesses operating within the geographic boundaries of Hayward must pay employees who work two or more hours per week the local minimum wage.
No. Small businesses are not exempt from the minimum wage ordinance. All businesses operating within the geographic boundaries of Hayward must pay employees who work two or more hours per week the local minimum wage. Small businesses with 25 or fewer employees must pay $15.50 per hour beginning January 1, 2023 per California State Law.
No. Tips and gratuity are not considered a part of the minimum hourly wage rate and may not offset the hourly wage.
No. Employees may not agree to work for less than the Hayward Minimum Wage unless there is a bona fide collective bargaining agreement in place.
Yes. Any person who works for an employer that maintains a facility in the City of Hayward or provides good and/or services within the City limits is eligible to be paid at the City of Hayward’s minimum wage rate.
No. An employer may not use fringe benefits such as health insurance, vacation, sick leave or other benefits to offset or use as a credit towards the employer’s obligation to pay the City minimum wage.
No. Only employees who work within the geographic boundaries of the City of Hayward are subject to the City’s minimum wage. All businesses operating within the geographic boundaries of Hayward must pay employees who work two or more hours per week the local minimum wage.
Yes. Any employee who works within the geographic boundaries of the City of Hayward is subject to the City of Hayward’s Minimum Wage Ordinance.
Each year, the City will publish a bulletin notice by October 1 on the Minimum Wage web page. It is the business owner’s responsibility to post the new wage rate and bulletin from the City in the workplace, in a location that employees may view the new rate along with their rights. All employees must be able to read and understand the rate, so posting in other languages is recommended.
The Consumer Price Index (CPI) is a measure of the average change over time in the prices paid by urban consumers for goods and services.
The CPI is used as an economic indicator measuring inflation, a deflator of economic series and as a means of adjusting dollar values. This relates to the minimum wage in that it adjusts consumers’ income payments to automatically provide cost-of-living wage adjustments. The City of Hayward caps the maximum the minimum wage may be adjusted each year at 5%.
The minimum wage in Hayward as of January 1, 2023 to $15.50 per hour for businesses that have 25 or fewer employees and $16.34 per hour for businesses with 26 or more employees. This applies to all employees working within the geographic boundaries of the City of Hayward, working two or more hours per week. All employees have rights pertaining to filing claims against employers who do not comply with the local minimum wage.
If you have experienced wage theft, file a wage claim with the State Labor Commissioner's Office by email, mail or in person. Workers in California have the right to file a wage claim when their employers do not pay them the wages or benefits, they are owed. A wage claim starts the process to collect on those unpaid wages or benefits. California’s labor laws protect all workers, regardless of immigration status.
For more information about filing a wage claim, visit the State of California Department of Industrial Relations website or contact the local office at:
State of California Labor Commissioner - Oakland Office 1515 Clay Street, Suite 801 Oakland, CA 94612 (510) 622-3273 email@example.com