Employee Login
Client Login

Dec 26, 2024

2025 Minimum Wages – California and Municipalities Effective January 01, 2025 Affects all CA employers and specific municipalitie

Effective January 01, 2025

Affects all CA employers and specific municipalities

 

Overview:

Beginning January 01, 2025, California’s State minimum wage will increase to $16.50 per hour for all employer sizes. Inflation provisions within Labor Code 1182.12 continue to trigger increases. Minimum wage reviews are conducted on or before August 1 of each year by the state’s Director of Finance.

 

Municipality and Industry Minimum Wages:

In addition to the CA state minimum wage, there are industry specific, and municipality minimum wages often tied to CPI to better support the needs of employees in the specified industries or geographical areas. Below is the 2024 minimum wages effective January 01, 2025 including calendar year increases effective April 01, 2024 (fast food), July 01, 2024 (specified municipalities), and October 16, 2024 (health care). For further information and/or printable posters, click the respective hyperlink to be directed to further information.  

California State Minimum Wage:

State 01/01/2025 Rate
California $16.50

 

California State Fast Food Minimum Wage:

State 04/01/2024 Rate
Limited-service restaurant chains with at least 60 establishments nationwide (if a local minimum wage is greater the local minimum wage must be paid) $20.00

 

California State Health Care Minimum Wage:

Covered Health Care Employers  10/16/2024 Rate
  1. Health care facility with 10,000+ FTEEs
  2. Health care facility part of an integrated health care system with 10,000+ FTEEs
  3. Health care facility with a dialysis clinic
  4. A person that owns, controls, or operates a dialysis clinic, or health facility owned, affiliated, or operated by a county with a population >5,000,000 as of 01/01/2023
 $23.00
  1. Hospital with a high governmental payor mix
  2. An independent hospital with an elevated governmental payor mix
  3. Rural independent covered health care facility
  4. Health care facility owned, affiliated, or operated by a county with a population <250,000 as of 01/01/2023
 $18.00
  1. Any of the following health care facilities
  1. Clinic as defined in subdivision (h) of Section 1206 of the Health and Safety Code not operated by or affiliated with a clinic in subdivision (b) of Section 1206 of the Health and Safety Code
  2. Community clinic licensed under subdivision (a) of Section 1204 of the Health and Safety Code, and any associated intermittent clinic exempt from licensure under subdivision (h) of Section 1206 of the Health and Safety Code
  3. A rural health clinic, defined in paragraph (1) of Section 1396d of Title 42 of the United States Code, that is not license-exempt
  4. An urgent care clinic that is owned or affiliated with a facility described in (ii) or (iii)
 $21.00
  1. All other covered health care facility employers
 $21.00

 

California State Municipality Minimum Wages:

Cities 01/01/2025 Rate 07/01/2024 Rate
Alameda $17.00 (effective 07/01/2024)
Belmont $18.30
Berkeley $18.67 (effective 07/01/2024)
Burlingame $17.43
Cupertino $18.20
Daly City $17.07
East Palo Alto $17.45
El Cerrito $18.34
Emeryville $19.36 (effective 07/01/2024)
Foster City $17.39
Fremont $17.30 (effective 07/01/2024)
Half Moon Bay $17.47
Hayward (25 or fewer employees) $16.50
Hayward (26 or more employees) $17.36
Long Beach (Concessionaire Workers) $17.97 (effective 07/01/2024)
Long Beach (Hotel Workers) $23.00 (effective 07/01/2024)
Los Altos $18.20
Los Angeles $17.28 (effective 07/01/2024)
Los Angeles (Hotels; 60 or more rooms) $20.32 (effective 07/01/2024)
Los Angeles County (Unincorporated) $17.27 (effective 07/01/2024)
Malibu $17.27 (effective 07/01/2024)
Menlo Park $17.10
Milpitas $17.70 (effective 07/01/2024)
Mountain View $19.20
Novato (25 or fewer employees) $16.42
Novato (26-99 employees) $17.00
Novato (100 or more employees) $17.27
Oakland $16.89
Oakland (hotels with health benefits) $18.36
Oakland (hotels without health benefits) $24.48
Palo Alto $18.20
Pasadena $17.50 (effective 07/01/2024)
Petaluma $17.97
Redwood City $18.20
Richmond $17.77
San Carlos $17.32
San Diego $17.25
San Francisco $18.67 (effective 07/01/2024)
San José $17.95
San Mateo City $17.95
San Mateo County (Unincorporated) $17.46
Santa Clara $18.20
Santa Monica $17.27 (effective 07/01/2024)
Santa Monica (All Hotels) $20.32 (effective 07/01/2024)
Santa Monica (Businesses on hotel property) $20.32 (effective 07/01/2024)
Santa Rosa $17.87
Sonoma City (25 or fewer employees) $16.96
Sonoma City (26 or more employees) $18.02
South San Francisco $17.70
Sunnyvale $19.00
West Hollywood (non-hotel employees) $19.65
West Hollywood (hotel employees) $19.61 (effective 07/01/2024)

 

Additional Minimum Wage Considerations:

It is important to understand the impact that minimum wage changes have on other minimum thresholds. For example, salary exempt employees must meet exemption requirements including earning no less than twice the minimum wage to remain exempt. With the increase to $16.50 per hour, salary exempt employees must earn no less than $68,640 per year, effective 01/01/2025. Additionally, computer software employees need to earn a minimum hourly rate of $56.97 per hour, or an annual salary of $118,657.43, or $9,888.13 per month. Exempt licensed physicians and surgeons need to earn no less than $103.75 per hour and commissioned inside sales exempt employees under wage orders 4 and 5 need to earn no less than $24.75 per hour. Minimum wage also impacts minimum pay for rest and non-productive time for piece rate earners, split-shift premiums, and minimum hourly rate for employees that are required to provide their own tools.

share this post:
© 2024 Hrizon HR. Website designed and maintained by Hey Salty