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:
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.
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