California’s 2025 Minimum Wage Increase: See the New Pay Rates Coming to Your Area

CALIFORNIA – California is increasing the minimum wage, starting January 1, 2025, to $16.50 per hour statewide – up from the current wage of $16.

Although the recent Proposition 32 failed to get the votes needed to increase California’s minimum wage to $18 per hour, the 50-cent increase is due to a statutory adjustment tied to inflation.

According to Rosasco Law Group, one of the protections of the minimum wage law is an annual review of the wage rate using the U.S. Consumer Price Index for Urban Wage Earners and Clerical Workers (U.S. CPI-W).

“This year, the Department of Finance calculated that the average U.S. CPI-W for the 12 months from July 1, 2023, to June 30, 2024, increased by 3.18% compared to the 12 months from July 1, 2022, to June 30, 2023,” says Rosasco Law Group on their website.

As a result, the minimum wage was increased to $16.50 for all employers to begin at the start of next year.

The minimum salary for exempt status employees will also increase from $66,560 per year ($1,280 per week) to $68,640 per year ($1,320 per week) beginning January 1, 2025.

Fast-food and healthcare minimum wage

Certain fast-food workers must be paid $20 per hour based on the state law that took effect this year. The California Fast Food Council has the authority to raise the fast-food minimum wage effective January 1, 2025, but so far has not acted to do so.

In addition, certain healthcare industry employees must be paid a minimum of $23 an hour through June 30, 2025, which will then increase to $24 an hour. The healthcare minimum wage is set to increase another dollar per hour to $25 an hour on July 1, 2026.

Local minimum wage increases

Many cities across California also have local minimum wage increases taking effect January 1, 2025.

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Here’s a list of local minimum wage rate increases across the state:

• Belmont: $18.30 per hour
• Burlingame: $17.43 per hour
• Cupertino: $18.20 per hour
• Daly City: $17.07 per hour
• East Palo Alto: $17.45 per hour
• El Cerrito: $18.34 per hour
• Foster City: $17.40 per hour
• Half Moon Bay: $17.47 per hour
• Hayward: $17.36 per hour for employers with 26 or more employees; $16.50 per hour for employers with 25 or fewer employees (per state law)
• Los Altos: $18.20 per hour
• Menlo Park: $17.10 per hour
• Mountain View: $19.20 per hour
• Novato: $17.27 per hour for employers with 100 or more employees; $17 per hour for employers with 26-99 employees; $16.42 per hour for employers with 1-25 employees (however, small employers must pay California’s higher state minimum wage rate of $16.50 per hour)
• Oakland: $16.98 per hour
• Palo Alto: $18.20 per hour
• Petaluma: $17.97 per hour
• Redwood City: $18.20 per hour
• Richmond: $17.77 per hour
• San Carlos: $17.32 per hour
• San Diego (city): $17.25 per hour
• San Jose: $17.95 per hour
• San Mateo (city): $17.95 per hour
• San Mateo County: $17.46 per hour
• Santa Clara: $18.20 per hour
• Santa Rosa: $17.87 per hour
• Sonoma (city): $18.02 per hour for employers with 26 or more employees; $16.96 per hour for employers with 25 or fewer employees.
• South San Francisco: $17.70 per hour
• Sunnyvale: $19.00 per hour
• West Hollywood: $19.65 per hour

Get help if the employer not paying minimum wage

State law requires that most California workers be paid the minimum wage.

Workers who aren’t being paid at least the minimum wage can get help by contacting the Labor Commissioner’s Office to file a complaint about unpaid wages.