CA minimum wage to increase in 2025 – find out how much in your area

CALIFORNIA – California is increasing the minimum wage, starting January 1, 2025, to $16.50 per hour statewide – up from the current wage of $16.

Although the recent Proposition 32 failed to get the votes needed to increase California minimum wage to $18 per hour, the 50 cent increase is due to a statutory adjustment tied to inflation.

According to Rosasco Law Group, one of the protections of the minimum wage law is an annual review of the wage rate using the U.S. Consumer Price Index for Urban Wage Earners and Clerical Workers (U.S. CPI-W).

“This year, the Department of Finance calculated that the average U.S. CPI-W for the 12-month period from July 1, 2023, to June 30, 2024, increased by 3.18% compared to the 12-month period from July 1, 2022, to June 30, 2023,” says Rosasco Law Group on their website.

As a result, the minimum wage was increased to $16.50 for all employers to begin at the start of next year.

The minimum salary for exempt status employees will also increase from $66,560 per year ($1,280 per week) to $68,640 per year ($1,320 per week) beginning January 1, 2025.

Fast-food and healthcare minimum wage

Certain fast-food workers must be paid $20 per hour based on the state law that took effect this year. 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.

In addition, certain healthcare industry employees must be paid a minimum of $23 an hour through June 30, 2025, which will then increase to $24 an hour. The healthcare minimum wage is set to increase another dollar per hour to $25 an hour on July 1, 2026.

Local minimum wage increases

Many cities across California also have local minimum wage increases taking effect January 1, 2025.

Here’s a list of local minimum wage rate increases across the state:

Belmont: $18.30 per hour
Burlingame: $17.43 per hour
Cupertino: $18.20 per hour
Daly City: $17.07 per hour
East Palo Alto: $17.45 per hour
El Cerrito: $18.34 per hour
Foster City: $17.40 per hour
Half Moon Bay: $17.47 per hour
Hayward: $17.36 per hour for employers with 26 or more employees; $16.50 per hour for employers with 25 or fewer employees (per state law)
Los Altos: $18.20 per hour
Menlo Park: $17.10 per hour
Mountain View: $19.20 per hour
Novato: $17.27 per hour for employers with 100 or more employees; $17 per hour for employers with 26-99 employees; $16.42 per hour for employers with 1-25 employees (however, small employers must pay California’s higher state minimum wage rate of $16.50 per hour)
Oakland: $16.98 per hour
Palo Alto: $18.20 per hour
Petaluma: $17.97 per hour
Redwood City: $18.20 per hour
Richmond: $17.77 per hour
San Carlos: $17.32 per hour
San Diego (city): $17.25 per hour
San Jose: $17.95 per hour
San Mateo (city): $17.95 per hour
San Mateo County: $17.46 per hour
Santa Clara: $18.20 per hour
Santa Rosa: $17.87 per hour
Sonoma (city): $18.02 per hour for employers with 26 or more employees; $16.96 per hour for employers with 25 or fewer employees.
South San Francisco: $17.70 per hour
Sunnyvale: $19.00 per hour
West Hollywood: $19.65 per hour

Get help if employer not paying minimum wage

State law requires that most California workers be paid the minimum wage.

Workers who aren’t being paid at least the minimum wage can get help by contacting the Labor Commissioner’s Office to file a complaint about unpaid wages.