2025 Brings New Minimum Wages by State, City, & County

Happy New Year! Many hourly and even some salaried employees are celebrating the new 2025 minimum wage increases occurring across California, which went into effect on January 1, 2025. Be sure your employees are getting the correct minimum wage by double checking exactly where remote employees now reside, and reviewing which cities and municipalities your on-site employees are working.

California’s 2025 state minimum wage increased to $16.50/hour for 2025. However, there are still many local minimum wage ordinances that require even higher minimum wages in their geographical boundaries. It’s likely that minimum wages are even higher for those employees who work in the fast food and health care industries. More information is available here on the fast food minimum wage, or the healthcare worker minimum wage.

See the full list of January 1 local increases below. Remember, local minimum wage ordinances are based on where your worker is physically working, not necessarily where your office or headquarters is located.

Your salaried exempt employees who work and live in California may also be celebrating. The minimum wage increase automatically increased the minimum salary requirement for your exempt (salaried) employees to $68,640 on January 1. (This amount is calculated by multiplying the state minimum wage of $16.50 by two and then multiplying that amount by 2080 hours.) Good news—the higher local minimum wages do NOT affect the exempt salary threshold! Unfortunately for employers in fast food and health care, the fast food minimum wage and health care worker minimum wage DOES impact the exempt employee salary minimum.

Local minimum wage increases that go above and beyond California’s State Minimum wage of $16.50, effective January 1, 2025, include:

Northern California:

• Belmont: $18.30/hour
• Burlingame: $17.43/hour
• Cupertino: $18.20/hour
• Daly City: $17.07/hour
• East Palo Alto: $17.45/hour
• El Cerrito: $18.34/hour
• Foster City: $17.39/hour
• Half Moon Bay: $17.47/hour
• Hayward: $17.36/hour (26 or more employees); $16.50/hour (25 or fewer employees)
• Los Altos: $18.20/hour
• Menlo Park: $17.10/hour
• Mountain View: $19.20/hour
• Novato: $17.27/hour (100 or more employees); $17.00/hour (26-99 employees); $16.42/hour (25 or fewer employees; however, employers must pay higher state minimum wage $16.50/hour)
• Oakland: $16.89/hour
• Oakland Hotels: $18.36/hour (with benefits); $24.98/hour (without benefits)
• Palo Alto: $18.20/hour
• Petaluma: $17.97/hour
• Redwood City: $18.20/hour
• Richmond: $17.77/hour
• San Carlos: $17.32/hour
• San Jose: $17.95/hour
• San Mateo (City): $17.95/hour
• San Mateo County: $17.46/hour
• Santa Clara: $18.20/hour
• Santa Rosa: $17.87/hour
• Sonoma (City): $18.02/hour (26 or more employees); $16.96/hour (25 or fewer employees)
• South San Francisco: $17.70/hour
• Sunnyvale: $19.00/hour

Southern California:

• San Diego (City): $17.25/hour
• West Hollywood: $19.65/hour

Need a list of all current local minimum wages? CEA members, we have you covered with our Local Minimum Wages and PSL Fact Sheet! Got questions? Give us a call at 800-399-5331.