Since California established a $15-per-hour minimum wage in 2016, the state’s wage policy has evolved significantly, including automatic adjustments tied to inflation. Starting January 1, 2025, the state minimum wage will increase to $16.50 per hour, reflecting inflation-driven adjustments that are triggered when inflation exceeds 7%.

In addition to the statewide increase, at least 25 cities and counties will implement higher local minimum wages, ranging from $16.70 to over $19 per hour. Cities like Mountain View and West Hollywood will lead with rates of $19.20 and $19.65, respectively. Employers must comply with the highest applicable wage rate, whether it is the state or local standard.

Sectors with Specific Regulations

Certain industries, such as fast food and healthcare, have independent minimum wage requirements. Fast food workers currently earn at least $20 per hour, while healthcare workers will see a minimum wage of $25 per hour in 2024, excluding dental offices.

Employer Obligations

Employers with exempt employees must also adjust their pay structures, as exempt workers must earn at least twice the state minimum wage for full-time employment. While there are provisions to delay wage increases during economic downturns, such exceptions are rare. The California Department of Industrial Relations (DIR) will update workplace postings to reflect these changes.

You might also be interested in its Spanish version: Así quedará el salario mínimo en California en el 2025

Below are some examples of notable local minimum wages for 2025:

• Mountain View: $19.20
• West Hollywood: $19.65
• El Cerrito: $18.34
• Palo Alto: $18.20
• San José: $17.95
• San Diego: $17.25

With these updates, California continues to lead in wage regulations tailored to economic and regional conditions.