On July 1, 2025, minimum wage increases will go into effect in certain cities and counties in California. In the City of Los Angeles, the minimum wage will increase from $17.28/hour to $17.87/hour. For hotel employees at hotels with 60 or more guest rooms, the minimum wage will increase to $22.50/hour. (Note: A referendum petition was filed against the Hotel Worker Minimum Wage Ordinance on May 23, 2025, and is being reviewed. If it is certified, the rate on July 1, 2025, will be $21.01/hour.)
The new minimum wage for employees in unincorporated areas of Los Angeles County, including Santa Monica, will be $17.81/hour (up from $17.27/hour). For hotel workers in Santa Monica, the rate will increase from $20.32/hour to $22.50/hour.
Below is a summary of the local minimum wage rate increases that will go into effect on July 1, 2025:
|
City |
Hourly Rate |
|---|---|
| Alameda | $17.46 |
| Berkeley | $19.18 |
| Emeryville | $19.90 |
| Fremont | $17.75 |
| Long Beach |
For concessionaire workers at the L.B. Airport and the L.B. Convention Center: $18.58 For hotel employees at hotels with 100 or more guest rooms: $25.00 Otherwise, the city continues to follow the state minimum wage rate ($16.50/hour). |
| City of Los Angeles |
$17.87 For hotel employees at hotels with 60 or more guest rooms: $22.50 (or $21.01 if the referendum petition is certified.) (To determine if a hotel falls within the city limits, go to the city of Los Angeles Neighborhood Info website.) |
| County of Los Angeles (unincorporated areas) | $17.81 |
| Milpitas | $18.20 |
| Pasadena | $18.04 |
| City and County of San Francisco | $19.18 |
| Santa Monica |
$17.81 For all hotel employees: $22.50 |
Although Malibu was scheduled to have a minimum wage increase on July 1, 2025, the Malibu City Council recently announced that it has approved a one-year suspension of the scheduled minimum wage increase "to support businesses impacted by the effects of the Palisades Fire." As a result, the minimum wage in Malibu will remain at $17.27 for Fiscal Year 2025-2026.
In cities that require a higher minimum wage than the state minimum wage, including the ones listed above, employers are bound by the higher city minimum wage. Employers in these cities should update their minimum wage postings in the workplace to reflect local increases.
You can find a complete inventory of minimum wage ordinances via the UC Berkeley Labor Center.
Employers with employees in California localities that have not set their own minimum wage must continue to comply with the State of California's minimum wage requirement, which is currently $16.50/hour for most employers. Employers should note that some industries are subject to a higher minimum wage rate. For fast food workers, there is a higher minimum wage of $20.00/hour (in effect since April 1, 2024). For certain healthcare workers, the minimum wage will increase to $24.00/hour on July 1, 2025.
Employers should remember that an increase in the local minimum wage does not affect the minimum wage that is used for the salary-basis test for California's executive, administrative, and professional overtime exemption categories. As a reminder, for these exemptions to apply, California employers must pay these employees a salary that is at least twice the state minimum wage (equal to $1,320.00/week, $5,720.00/month, or $68,640.00 annually), in addition to meeting the other requirements for those exempt classifications.
Employers with out-of-state employees should note that federal regulations require employees to be paid a minimum salary of $35,568.00, or $684.00/week, to qualify as exempt under the executive, administrative, or professional employee exemptions.
Employees outside of CA who are exempt under the federal Highly Compensated Employees rule must earn $107,432.00 per year, including at least $684.00 per week paid on a salary or fee basis. Although the minimum salaries under these federal exemptions were set to increase on July 1, 2024, and again on January 1, 2025, pursuant to the Department of Labor's April 26, 2024, "final rule," the U.S. District Court for the Eastern District of Texas vacated the 2024 final rule on November 15, 2024. Per the Department of Labor, "Lawsuits regarding the 2024 final rule are currently pending in two other federal district courts, and the United States has filed a notice of appeal from the November 15 decision. The Department will update this notice with additional information as it becomes available."
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
