California State and Local Minimum Wage Updates
All employers in California must pay at least the state minimum of $16.50 per hour (effective January 1, 2025). However, July is nearly here, and with July come new local minimum wage increases across several California cities and counties (as well as for some healthcare employers). These mid-year changes require employers to reassess pay hourly rates for non-exempt employees, as follows:
- Alameda: $17.46
- Berkeley: $19.18
- Emeryville: $19.90
- Fremont: $17.75
- Milpitas: $18.20
- Pasadena: $18.04
- San Francisco: $19.18
- Santa Monica: $17.81
- City of Los Angeles: $17.87
- Unincorporated Los Angeles County: $17.81
Industry‑Specific Minimum Wage Rates
In addition to local rates noted above, California enforces higher wages in certain industries:
- Larger fast‑food chain employers: $20.00 per hour (since April 1, 2024)
Hotel workers:
- Los Angeles and Santa Monica: $22.50 per hour
- West Hollywood: $20.22 per hour
- Long Beach: $25.00 per hour
Healthcare facility employees:
- $24.00 per hour (applicable to hospitals or large integrated health systems with 10,000+ employees, county‑run healthcare agencies in counties with over 5 million residents, and dialysis clinics)
- $18.63 per hour for employees at facilities run by small counties or designated safety‑net hospitals
Next Steps for Employers
To ensure compliance by July 1, 2025, you should:
- Update payroll systems to reflect new rates based on employee location and industry
- Post updated local and industry‑specific minimum wage notices at each workplace, in required languages (when in doubt, the higher local rules win out!)
- Apply the highest applicable rate when overlapping rules exist
- For remote workers, base their wage on where they physically perform their work
California’s minimum wage landscape evolves frequently and by location. Employers need to review their minimum wage policies now to meet the upcoming changes.
For questions about employment law issues, contact the attorneys at LightGabler LLP.