As of July 1, 2025, several states, cities, and municipalities will see their minimum wage rates rise, with California being the most notable among them.
While many regions already implemented increases earlier in the year, workers in over a dozen cities and states are set to benefit from new wage laws. These changes are part of efforts to address the increasing cost of living and ensure fair compensation for workers.
State and Local Minimum Wage Increases in California:
In California, the state minimum wage has been set at $16.50 per hour. However, many cities and counties have enacted ordinances that establish higher local minimum wages. Employers in these areas must comply with the highest applicable wage rate.
Here is a breakdown of the local minimum wage increases that went into effect on July 1, 2025 in California:
- Alameda: $17.46 per hour
- Berkeley: $19.18 per hour
- Emeryville: $19.90 per hour
- Fremont: $17.75 per hour
- Los Angeles (city): $17.87 per hour
- Los Angeles County (unincorporated areas): $17.81 per hour
- Milpitas: $18.20 per hour
- Pasadena: $18.04 per hour
- San Francisco: $19.18 per hour
- Santa Monica: $17.81 per hour
Sector-Specific Salary Increases
Some cities in California have introduced sector-specific wage increases that apply to certain industries:
- Los Angeles: Workers at large hotels (those with more than 60 rooms) and at the airport will see a wage increase to $22.50 per hour. However, this increase could be delayed if a referendum petition is validated, in which case, the wage would be adjusted to $21.01 per hour.
- Santa Monica: Hotel workers will also receive a $22.50 per hour wage, or $21.01 per hour, depending on the outcome of the referendum.
- West Hollywood: The minimum wage for hotel workers will increase to $20.22 per hour from July 2025 to June 2026.
Read Also: Consumers Brace for California’s 4% Cannabis Tax Increase Starting July 1
Exempt Workers’ Salary Requirements:
It is important to note that workers in California who are exempt from the minimum wage (i.e., executive, professional, or administrative employees) must earn a minimum annual salary of $68,640.
This amount is based on the state’s minimum wage, and with any wage increases, this threshold automatically rises. However, increases implemented by specific cities or sectors do not affect this annual salary requirement.
What Employers Should Do:
To ensure compliance with the new wage laws, employers in California must:
- Review local and state wage laws to confirm the applicable wage rates for their employees.
- Post required notices regarding the new wage rates in the workplace.
- Implement the appropriate wage increases to comply with the new regulations.
Are you a worker or employer in California? How will these wage increases impact you or your business? Share your thoughts in the comments below.
Stay informed on the latest updates in labor laws and wage changes by visiting ridgecrestpact.org.
