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© 2021 American Payroll Institute, Inc. State and Local Minimum Wage Rate Changes Effective July 1 Many states, cities, and counties have enacted their own minimum wage laws and ordinances in the absence of legislation to increase the federal minimum wage ($7.25 an hour). Several states and localities have minimum wage rates that took effect July 1. Remember there might be additional requirements specific to certain industries, such as pandemic-specific hero pay or hazard pay ordinances requiring payment of an additional premium per hour to certain employees (see PAYSTATE UPDATE, Issue 8, Vol. 23). Typically, these requirements apply to certain categories of front-line workers in retail grocery or drug stores or to health care workers who have continued to work in public-facing positions throughout the pandemic. Be sure to check for expiration dates for these requirements as reopening occurs because most are temporary measures. Also remember changes to minimum wage rates can impact state white collar exemption salary thresholds and state garnishment limits (see APA’s Guide to State Payroll Laws, §§1.3 and 7.1). State white collar exemption threshold increases. In Oregon, the July 1 minimum wage increase meant an increase in white collar overtime exemption salary thresholds to $560 per week (Portland metro previously $530), $510 per week (standard previously $480), and $480 per week (nonurban counties previously $460). State garnishment limit increases. In California, local minimum wage increases affect garnishment limits and must be applied. Recent minimum wage increases also change garnishment limits in Connecticut and the District of Columbia. Garnishment limits for fast food workers in New York might also be affected. The following chart provides state, county, and city minimum wage rates and tip credit amounts that changed effective July 1, 2021 (unless indicated otherwise). Definitions are included in the footnotes. Minimum Wage Increases Effective July 1, 2021 City/County/State Minimum Wage Prior to July 1 Minimum Wage Eff. July 1, 2021 Tip Credit Prior to July 1 Tip Credit Eff. July 1, 2021 Berkeley, CA $16.07 $16.32 prohibited Emeryville, CA $16.84 $17.13 prohibited Fremont, CA1 $15.00 large employers $15.25 large employers prohibited $13.50 small employers $15.00 small employers Long Beach, CA hotel workers $15.47 hotel workers $15.69 hotel workers prohibited Los Angeles, CA1 city and county $15.00 large employers $15.00 large employers prohibited $14.25 small employers $15.00 small employers $17.13 hotel workers2 $17.64 hotel workers2 Malibu, CA1 $15.00 large employers $15.00 large employers prohibited $14.25 small employers $15.00 small employers Milpitas, CA $15.40 $15.65 prohibited Pasadena, CA1 $15.00 large employers $15.00 large employers prohibited $14.25 small employers $15.00 small employers July 19, 2021 Volume 23 Issue 14