As we head into the new year, employers must continue to monitor minimum wages at the state and local level. California’s minimum wage will increase on January 1, 2025 to $16.50. In addition, the minimum wage will increase on January 1, 2025 (and again in July) for several municipalities. It can be tricky staying on top of the many local municipalities that already require minimum wage increases beyond $18 after January 2025 (the rate employers would have had to pay if Proposition 32 had passed).
Also keep in mind wage rates required for certain industries.
- Fast food restaurant employees must be paid at least $20.00 per hour. 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.
- Computer professional’s minimum hourly rate of pay has been adjusted from $55.58 to $56.97, effective January 1, 2025.
- Health care workers are also impacted by recently enacted legislation (SB 525 and SB 159) added sections 1182.14, 1182.15, and 1182.16 to the Labor Code, increasing the minimum wage for workers of certain health care employers. As a result, beginning on October 16, 2024, certain health care workers have been eligible to receive a higher minimum wage if they (1) work for certain “health care facilities” that are covered in the new law and (2) provide health care services or support the provision of health care. More information can be found here on health care wages https://www.dir.ca.gov/dlse/Health-Care-Worker-Minimum-Wage-FAQ.htm and on our previous blog Pay Attention to Those California City Boundaries | California Employment Law
This chart summarizes California municipality wage rates increasing in 2025:
| Location | New Rate 2025 |
| Alameda | $17.00 (effective July 1, 2024) |
| Belmont | $18.30 |
| Berkeley | $18.67 + CPI per hour effective July 1, 2025 |
| Burlingame | $17.43 |
| Cupertino | $18.20 |
| Daly City | $17.07 |
| East Palo Alto | $17.45 |
| El Cerrito | $18.34 |
| Emeryville | $19.36 (effective 7/1/24) |
| Foster City | $17.40 |
| Fremont | $17.30 (effective 7/1/24) |
| Half Moon Bay | $17.47 |
| Hayward | $17.36 for 26 or more employees $16.50 for 25 or fewer employees |
| Los Altos | $18.20 |
| Los Angeles | $17.28 (effective 7/1/24) |
| Los Angeles County | $17.27 (effective 7/1/24) |
| Malibu | $17.27 (effective 7/1/24) |
| Menlo Park | $17.10 |
| Milpitas | $17.70 (effective 7/1/24) |
| Mountain View | $19.20 |
| Novato | $17.27 for 100 or more employees $17.00 for 26-99 employees $16. 42 for 25 or fewer employees [state minimum] |
| Oakland | $16.89 Effective January 1, 2025, the Oakland Hotel Minimum Wage Rate goes up to $18.36 per hour (with Health Benefits), and $24.48 per hour (without Health Benefits) |
| Palo Alto | $18.20 |
| Pasadena | $17.50 (effective 7/1/24) |
| Petaluma | $17.97 |
| Redwood | $18.20 |
| San Carlos | $17.32 |
| Santa Clara | $18.20 |
| San Diego | $17.25 |
| San Francisco | $18.67 |
| San Jose | $17.95 |
| San Mateo | $17.95 |
| San Mateo County (unincorporated areas) | $17.46 |
| Santa Monica | $17.27 (effective July 1, 2024) Wage for hotels and businesses operating on hotel property $20.32 effective on July 1, 2024. |
| Santa Rosa | $17.87 |
| Sonoma | $18.02 for 26 or more employees $16.96 for 25 or fewer employees |
| South San Francisco | $17.70 |
| Sunnyvale | $19.00 |
| West Hollywood | $19.65 for non-hotel employees. This rate will be in effect until December 31, 2025. On July 1, 2024, the minimum wage rate for hotel employees was $19.61. This rate will be in effect until June 30, 2025. |
UC Berkely Labor Center posts yearly a list of California city and county minimum wages that can be found here. Inventory of US City and County Minimum Wage Ordinances – UC Berkeley Labor Center. Also be sure to check your city’s website to understand which city your business falls in. Cheers to staying compliant with minimum wage rates in 2025 and beyond.