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2023 Minimum Wage Increases in Santa Clara, Sunnyvale

The 2023 minimum wage is going up in Santa Clara and Sunnyvale.

The City of Santa Clara says starting on Jan. 1, 2023, any employer who is subject to the city’s business license tax or maintains a facility within the city will be required to pay employees $17.20 per hour, the city’s new minimum wage.

In Santa Clara, an employee is someone who “performs at least two hours of work a week.”


Santa Clara’s minimum wage is adjusted annually and based on the regional consumer price index. In 2022, the City’s minimum wage was $16.40 per hour.

Sunnyvale is also increasing its minimum wage. Starting on Jan. 1, 2023, the new minimum wage in Sunnyvale will be $17.95 per hour.

Like Santa Clara, Sunnyvale adjusts its minimum wage based on the regional consumer price index. In 2022, Sunnyvale’s minimum wage was $17.10 per hour.

State and Federal Minimum Wage

As of Jan. 1, 2023, the Federal minimum wage will remain at $7.25 per hour. Meanwhile, California’s minimum wage is $15.50 per hour for employers with 26 or more employees. It is the same rate for employers with 25 or fewer employees.

Since both Santa Clara and Sunnyvale have stricter minimum wage requirements, employers are required to follow the requirements in their respective cities versus the state or federal rules.

According to Santa Clara’s FAQ document on minimum wage: “Santa Clara employers are subject to Federal, State and Santa Clara minimum wage laws. When there are conflicting requirements in the laws, the employer must follow the strictest standard – that is, the one that is most favorable to the employee. Since Santa Clara’s ordinance will require a higher minimum wage rate than the State and Federal law, covered employers will be required to pay the city minimum wage.”

For more details on Santa Clara’s minimum wage rules, visit the City’s Business and Development website.

You can receive more details on Sunnyvale’s minimum wage rules by visiting Sunnyvale’s website and searching “minimum wage,” calling Sunnyvale city staff at (408) 730-7902 or emailing


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