As of July 1, 2025, several California cities and counties are raising their local minimum wage rates—some dramatically. These updates reflect the continued effort to match pay with rising living costs and inflation across the state. If you work in California, now is the time to check your pay rate and ensure you’re being compensated fairly and legally.
At Employees First Labor Law, we’ve recovered millions for workers shorted on wages, breaks, and overtime. This guide will walk you through the minimum wage changes, industry-specific increases, and your rights if your employer doesn’t comply.
🔎 What Is California’s Statewide Minimum Wage?
As of January 1, 2025, the statewide minimum wage is:
- $16.50 per hour (for employers of all sizes)
This base rate does not change on July 1—but many cities and counties will raise their minimum wages under local ordinances. Under California law, employers must follow the highest applicable minimum wage, whether it’s set by the state, county, or city. (See: Lab. Code §§ 1182.12, 1197)
📍 July 1, 2025 Local Minimum Wage Increases
If you work in one of the following jurisdictions, your minimum hourly wage is going up. These changes apply to all employees who perform at least two hours of work per week in that location.
| Location | Current Rate | New Rate (July 1, 2025) |
|---|---|---|
| Los Angeles (City) | $17.28 | $17.87 |
| Unincorporated L.A. Co. | $17.27 | $17.81 |
| Santa Monica | $17.27 | $17.81 |
| Pasadena | $17.50 | $18.04 |
| San Francisco | $18.67 | $19.18 |
| Berkeley | $18.67 | $19.18 |
| Emeryville | $19.36 | $19.90 |
| Fremont | $17.30 | $17.75 |
| Milpitas | $17.70 | $18.20 |
| Alameda County | $17.00 | $17.46 |
| Sonoma County | $17.65 | $23.15 (new record high) |
▶ Tip: If you perform work in multiple cities, you must be paid the highest rate applicable to any location where you spend two or more hours in a workweek.
Industry-Specific Minimum Wages
Some industries have their own higher wage floors, particularly fast food, healthcare, and hospitality. These are set by state legislation or municipal ordinances, often following years of advocacy by unions and worker coalitions.
Fast Food Workers – $20.00/hour (Statewide)
- As of April 1, 2024, large fast food chains must pay at least $20.00/hour under AB 1228.
Healthcare Workers – Up to $24.00/hour
Under SB 525, California has enacted a multi-tiered wage schedule:
- Large hospitals & dialysis clinics: $24.00/hour
- Rural or safety-net facilities: $18.63/hour (indexed annually)
Hotel and Airport Workers – Up to $22.50/hour
- Cities like Los Angeles and Santa Monica will raise wages to $22.50/hour unless delayed by referendum, in which case the interim rate is $21.01/hour.
What This Means for Salaried Workers
Minimum wage laws don’t just affect hourly employees—they also impact salaried exempt workers who are classified as exempt from overtime under California law.
To qualify as exempt under the executive, administrative, or professional exemption, salaried workers must:
- Spend more than 50% of their time performing exempt duties
- Be paid at least 2x the applicable minimum wage for full-time employment
That means if the local minimum wage increases, the minimum salary threshold also increases. For example, in a city with a $19.18 minimum wage (like San Francisco), a salaried exempt employee must earn at least $79,334.40 per year ($19.18 × 2 × 40 hours/week × 52 weeks).
If your salary does not meet this threshold, you may be misclassified and entitled to:
- Overtime pay
- Meal and rest breaks
- Reimbursement for missed wages
👉 Learn more: Minimum Salary Requirements for Exempt Employees in California
⚠️ What If My Employer Doesn’t Comply?
If your employer fails to adjust your pay to match the new legal minimums, you may have a claim for:
- Back wages
- Liquidated damages
- Penalties for waiting time and pay stub violations
- Attorneys’ fees
You can file a complaint with the California Labor Commissioner, or work with a private attorney to pursue full compensation under the law.
Calculate Your Damages Using Our Calculator Here For Free
📞 Contact EFLL to Protect Your Wages
At Employees First Labor Law, we stand up for California workers in all industries. Whether you’re being underpaid, denied overtime, misclassified as exempt, or forced to skip breaks—we fight to make it right.
✅ Free case evaluations
✅ No fees unless we win
✅ Experienced wage and hour trial lawyers
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📞 Call us now to speak with an employment law attorney
