California Cities Increase Minimum Wage
On July 1, 2025, several California cities will increase their local minimum wage.
For example, the City of Los Angeles is increasing minimum wage to $17.87 per hour. Los Angeles County is increasing its minimum wage to $17.81 per hour (which applies to unincorporated areas within the County). Other cities include Berkeley, Pasadena, San Francisco, Santa Monica and many more up and down the State. Generally, these local ordinances apply to employees who work within the geographic boundary of the particular city or county, even if the employer is based elsewhere.
Certain industries have their own unique minimum wage rules, such as fast-food workers and certain workers in the healthcare industry. Healthcare workers’ minimum wage will also rise on July 1 for facilities that meet specific requirements.
The State’s minimum wage is $16.50 and will increase again on January 1, 2026. Employers must pay the higher of the state or local minimum wage. Keep in mind that salaried exempt employees that are classified as executive, administrative, or professional employees must be paid two times the State’s minimum wage on a salaried basis. Currently, this means the minimum salary threshold for a salaried exempt employee is $68,640/year ($5,720 per month).
California employers should review local minimum wage rates to ensure compliance with the law. Employers with any questions regarding wage obligations should contact employment counsel.
Sue M. Bendavid is the Chair of our Employment Practice Group.