CA Minimum Wage Increase in 2025

Starting January 1, 2025, the minimum wage will rise from $16.00 to $16.50 per hour in California. This law applies to all employers, regardless of size.

If your employer fails to comply, contact an Orange County wage and hour attorney to discuss your legal options today.

Key Changes to California Minimum Wage Laws

Some cities in California will have even higher minimum wages than the state standard. For example:

• Belmont: $18.30 per hour
• Los Altos: $18.20 per hour
• Mountain View: $19.20 per hour
• Redwood: $18.20 per hour
• San Diego: $17.25 per hour
• Sunnyvale: $19.00 per hour

Employers operating in these jurisdictions must comply with the local ordinances, which override the state minimum wage where applicable.  

The state’s rise in minimum wage also affects the salary thresholds for exempt employees under the administrative, executive, and professional exemptions. To qualify as exempt, these employees must earn at least twice the state minimum wage. With the new increase, the annual salary requirement for exempt employees will rise to $68,640 from $66,560, or $5,720 per month.  

Industry-Specific Adjustments in California

Certain industries in California have unique minimum wage requirements that surpass the statewide rate:

• Fast-Food Workers: As of April 2024, fast-food employees have been entitled to a $20 per hour minimum wage. This rate will continue to apply in 2025.
• Healthcare Workers: Starting July 1, 2025, healthcare workers will see their minimum wage increase to $23 per hour, with scheduled increments in subsequent years.  

What are Employer Obligations in California?

Employers in California must take proactive steps to ensure compliance with the new minimum wage laws. Key responsibilities include:  

• Updating Payroll Systems: Adjust wages to reflect the new minimum rates and ensure all exempt employees meet the updated salary threshold.
• Displaying Wage Notices: Post updated wage notices in the workplace, as required by law.
• Auditing Pay Practices: Regular audits can help employers identify and resolve any discrepancies in wage payments.

Failing to comply with minimum wage laws can result in significant penalties, back pay obligations, and potential lawsuits. Employees will be entitled to receive compensation for unpaid wages and interest payments. 

What Do I Need to Do to Receive the Minimum Wage Increase in California?

Employers are responsible for automatically raising wages when there is a minimum wage increase, which means you should not have to do anything. However, review your pay stubs and ensure you are receiving the correct wage under the updated laws. If you work in a city with higher local rates or industries with special provisions, verify your pay aligns with those standards.

Keep a personal record of your hours worked, especially if you believe your employer is not paying the correct rate. This documentation can serve as evidence if you need to file a complaint. If employers fail to comply, you can report violations to the California Labor Commissioner and consult an Orange County wage and hour lawyer to recover unpaid wages.  

California law prohibits employers from retaliating against employees who demand fair pay or report wage violations. Retaliation may include termination, demotion, or reduced hours. If you face retaliation, you can file an additional complaint with the Labor Commissioner.