California State and Local Minimum Wage 2025
Updated Jan 1, 2025
The California minimum wage increased on January 1, 2025.
Here is everything you need to know about the new minimum wage rates in 2025.
California Minimum Wage 2025
The California minimum wage, effective January 1, 2025, is $16.50 per hour, regardless of the size of the employer [source].
| Effective Date | Large Employers (26+ Employees) | Small Employers (25 or fewer Employees) |
|---|---|---|
| January 1, 2024 | $16.00 | $16.00 |
| January 1, 2025 | $16.50 | $16.50 |
[Note: see the April 1 exception for Fast-Food workers in the next section]
This adjustment increases the minimum annual salary for white-collar exempt employees, setting it at $68,640 per year or $5,720 per month. It is essential to conduct an audit of employees falling under these exemptions to determine if both their job duties and salary meet the requirements for exemption.
[Note: the minimum wage rate for all employers from January 1, 2025 has been set by the Department of Finance at $16.50 per hour, an increase of 3.18%]
It is important to note that there are Minimum Salary Exemptions for California, such as computer software professionals. To learn about any of these exemptions in California, or any state, please message us.
California Minimum Wage for Fast-Food Employees in 2025
Per legislation AB 1228, the California minimum wage for fast-food employees in national chains is $20 per hour, beginning from April 1, 2024.
Who Are âFast Food Restaurant Employeesâ Under this New Law?
The law applies only to employees of âfast food restaurants.â The FAQs from the Department of Industrial Relations state that, to be considered a fast food restaurant, the restaurant must meet ALL of the below criteria:
- The restaurant must be a âlimited-service restaurantâ in California. A limited service restaurant is one that offers limited or no table service, where the customers order food or beverage items and pay for those items before the items are consumed.
- The restaurant is part of a restaurant chain of at least 60 establishments nationwide. An establishment is a single restaurant location offering food or beverages to customers. Business locations performing only administrative, warehouse, or food preparation work are not counted as âestablishmentsâ toward the 60 establishment minimum.
- The restaurant is primarily engaged in selling food and beverages for immediate consumption.
California Local Minimum Wage 2025
Local jurisdictions â Counties or Cities â may have their own minimum wage that may trump the State minimum wage. Employers must pay the rate that benefits the employee.
Please check the tables below for minimum wage rates in 2025 for all local jurisdictions.
California City and County Minimum Wage Effective Jan 1, 2025
| Jurisdiction | Large Employers (26+ Employees) | Small Employers (25 or fewer Employees) |
|---|---|---|
| Alameda [source] * | $17.00 | $17.00 |
| Belmont [source] | $18.30 | $18.30 |
| Berkeley [source] * | $18.67 | $18.67 |
| Burlingame [source] | $17.43 | $17.43 |
| Cupertino [source] | $18.20 | $18.20 |
| Daly City [source] | $17.07 | $17.07 |
| East Palo Alto [source] | $17.45 | $17.45 |
| El Cerrito [source] | $18.34 | $18.34 |
| Emeryville [source] * | $19.36 | $19.36 |
| Foster City [source] | $17.39 | $17.39 |
| Fremont [source] * | $17.30 | $17.30 |
| Glendale [source] * | $16.50 or $20.32/hour for hotels with 60 or more rooms | $16.50 or $20.32/hour for hotels with 60 or more rooms |
| Half Moon Bay [source] | $17.47 | $17.47 |
| Hayward [source] | $17.36 | $16.50 |
| Long Beach [source] * | $16.50 or $23.00 for Hotel Workers $17.97 for Concessionaire workers | $16.50 or $23.00 for Hotel Workers $17.97 for Concessionaire workers |
| Los Altos [source] | $18.20 | $18.20 |
| Los Angeles (City) [source] * | $17.28 or $20.32/hour for hotels with 60 or more rooms | $17.28 or $20.32/hour for hotels with 60 or more rooms |
| Los Angeles (Unincorporated Areas of County) [source] * | $17.27 | $17.27 |
| Malibu [source] * | $17.27 | $17.27 |
| Menlo Park [source] | $17.10 | $17.10 |
| Milpitas [source] * | $17.70 | $17.70 |
| Mountain View [source] | $19.20 | $19.20 |
| Novato [source] | $17.00 ($17.27 for Very Large Employers with 100+ Employees) | $16.42 |
| Oakland [source] | $16.98 or $18.36 for hotel workers with Health Benefits $24.48 for hotel workers without Health Benefits | $16.98 or $18.36 for hotel workers with Health Benefits $24.48 for hotel workers without Health Benefits |
| Palo Alto [source] | $18.20 | $18.20 |
| Pasadena [source] * | $17.50 | $17.50 |
| Petaluma [source] | $17.97 | $17.97 |
| Redwood City [source] | $18.20 | $18.20 |
| Richmond [source] | $17.77 | $17.77 |
| Sacramento | $16.50 | $16.50 |
| San Carlos [source] | $17.32 | $17.32 |
| San Diego [source] | $17.25 | $17.25 |
| San Francisco [source] * | $18.67 | $18.67 |
| San Jose [source] | $17.95 | $17.95 |
| San Leandro [source] | $16.50 | $16.50 |
| San Mateo [source] | $17.95 | $17.95 |
| San Mateo County (Unincorporated) [source] | $17.46 | $17.46 |
| Santa Clara [source] | $18.20 | $18.20 |
| Santa Monica [source] * | $17.27 or $20.32 for hotels and businesses operating on hotel property | $17.27 or $20.32 for hotels and businesses operating on hotel property |
| Santa Rosa [source] | $17.87 | $17.87 |
| Sonoma [source] | $18.02 | $16.96 |
| South San Francisco [source] | $17.70 | $17.70 |
| Sunnyvale [source] | $19.00 | $19.00 |
| West Hollywood [source] * | $19.65 or $19.61 for hotel employees | $19.65 or $19.61 for hotel employees |
To keep your business up to date with the current Minimum Wage in your local jurisdiction or state, why not use our Labor Law Poster Service – youâll be updated automatically with new Labor Law Posters based on your state, industry, and employee size.
Minimum Wage in Other States
We service small businesses, CPAs and accountants in most states and are constantly expanding. Please contact us to learn more about how we can help you navigate minimum wage requirements and ensure compliance for your business.
Please be aware that other states may change their minimum wage rates in months other than January. For example, on July 1, 2024, the minimum wage in Nevada increased to $12.00 for all employers – there was no longer a tiered rate system. The official notice can be found here: NEVADA WAGE NOTICE.Â
Always double-check the minimum wage in your area, as governed by the Fair Labor Standards Act (FLSA), to verify this article has the most current information.
We are here to help you through these changing regulations.
