The director of California’s Department of Finance has certified that the state’s minimum wage will increase from $16 per hour to $16.50 per hour for all employers as of January 1, 2025.

Companies with operations in California should also be aware of specific minimum wages for fast food employees (described here) and healthcare workers (described here). Additionally, certain cities and counties have their own local wage requirements (described here). California employers should review their pay policies to ensure compliance with the highest applicable minimum wage rate for their employees.