On January 1, 2025, the statewide minimum wage increased to $16.50 per hour. With the change in the statewide minimum wage, the minimum exempt salary for California employees rose from $66,560 to $68,640 per year.

In addition to the statewide minimum wage, certain industries in California, such as the fast food and healthcare industries, have their own minimum wage requirements that exceed the statewide minimum wage.

Moreover, a number of cities and counties across California have enacted local minimum wages, many of which exceed the statewide minimum wage. Where multiple minimum wage laws apply to an employee, the highest applicable minimum wage should be followed.

Several of these local minimum wages also increased effective January 1, 2025, including:

• The City of Belmont increased its minimum wage to $18.30 per hour;
• The City of Burlingame increased its minimum wage to $17.43 per hour;
• The City of Cupertino increased its minimum wage to $18.20 per hour;
• Daly City increased its minimum wage to $17.07 per hour;
• The City of East Palo Alto increased its minimum wage to $17.45 per hour;
• The City of El Cerrito increased its minimum wage to $18.34 per hour;
• Foster City increased its minimum wage to $17.39 per hour;
• The City of Halfmoon Bay increased its minimum wage to $17.47 per hour;
• The City of Hayward increased its minimum wage for businesses with 26 or more employees to $17.36 per hour;
• The City of Los Altos increased its minimum wage to $18.20 per hour;
• The City of Menlo Park increased its minimum wage to $17.10 per hour;
• The City of Mountain View increased its minimum wage to $19.20 per hour;
• The City of Novato increased its minimum wage for businesses with 100 or more employees to $17.27 and increased its minimum wage for businesses with 26 or more employees to $17.00 per hour;
• The City of Oakland increased its minimum wage to $16.89 per hour;
• The City of Palo Alto increased its minimum wage to $18.20 per hour;
• The City of Petaluma increased its minimum wage to $17.97 per hour;
• Redwood City increased its minimum wage to $18.20 per hour;
• The City of Richmond increased its minimum wage to $17.77 per hour;
• The City of San Carlos increased its minimum wage to $17.32 per hour;
• The City of San Diego increased its minimum wage to $17.25 per hour;
• The City of San Jose increased its minimum wage to $17.95 per hour;
• The City of San Mateo increased its minimum wage to $17.95 per hour;
• The County of San Mateo (unincorporated areas) increased its minimum wage to $17.46 per hour;
• The City of Santa Clara increased its minimum wage to $18.20 per hour;
• The City of Santa Rosa increased its minimum wage to $17.87 per hour;
• The City of Sonoma increased its minimum wage for employers with 26 or more employees to $18.02 per hour and increased its minimum wage for employers with 25 or fewer employees to $16.96 per hour;
• The City of South San Francisco increased its minimum wage to $17.70 per hour;
• The City of Sunnyvale increased its minimum wage to $19.00 per hour; and
• The City of West Hollywood increased its minimum wage to $19.65 per hour.

California employers should assess their need to adjust their employees’ wages to conform with these changes in the law.

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