July 1 Minimum Wage Increases in California

Summer is in full swing, and California employers should be aware of several July 1 local area minimum wage increases and minimum wage requirements in the healthcare industry.

Local Minimum Wage Increases

There are several local jurisdictions throughout California that implemented mid-year minimum wage increases, beyond the State’s required rate ($16.50/hour for most industries).

• Note: Some local minimum wages will exceed state industry-specific minimum wages for the Fast Food and Healthcare industries. In such cases, the employer must pay the higher hourly rate.

When determining if a local minimum wage applies to your business, remember to consider your non-exempt (hourly) remote and hybrid workers who may be living/working in a geographic location different from your main office location or headquarters. Local minimum wage ordinances are based on where your worker is physically working. Also, any hourly employees who are sent to visit a client or do any work in a city or county with a higher minimum wage may be entitled to a higher pay rate during those working hours.

So, take note! Local hourly rate increases taking effect on July 1 include:

Northern California	Southern California*
Alameda: $17.00 to $17.46	Los Angeles City: $17.28 to $17.87
Berkeley: $18.67 to $19.18	LA City and Santa Monica Hotels: $20.32 to $22.50*
Emeryville: $19.36 to $19.90	Los Angeles County (unincorporated areas): $17.27 to $17.81
Fremont: $17.30 to $17.75	Long Beach Hotels $23.00 to $25.00
Milpitas: $17.70 to $18.20	Pasadena: $17.50 to $18.04
San Francisco (City): $18.67 to $19.18	Santa Monica: $17.27 to $17.81
	West Hollywood Hotels: $19.61 to $20.22

*Los Angeles City and Santa Monica Hotel Worker Minimum Wages

There is currently some uncertainty regarding hotel worker minimum wage increases in Los Angeles, which also impacts the hotel worker minimum wage in Santa Monica.

A referendum petition was filed against the amendment to the Los Angeles Citywide Hotel Worker Minimum Wage Ordinance, which would raise the minimum wage for hotel workers to $22.50 beginning July 1, 2025.  If the petition is certified by the City Clerk, the amendment may be suspended, and the minimum wage rate on July 1, 2025, will be $21.01 per hour.  Under Santa Monica’s Municipal Code, the hourly wage for hotel workers in Santa Monica matches the hourly wage set for hotel workers in the City of Los Angeles. Employers subject to these ordinances should check city websites regularly for updates.

Malibu Increase Suspended Due to Palisades Fire

Due to the Palisades Fire, the scheduled July 1 minimum wage increase for the City of Malibu has been suspended to support businesses impacted. The minimum wage in the City of Malibu will remain at $17.27 per hour for Fiscal Year 2025–2026.

For an expansive list of local minimum wages in effect, CEA members may refer to our Local Minimum Wage Fact Sheet on our HR forms page.

July 1 Healthcare Industry Minimum Wage Increases

July 1 also marks an increase in California’s state minimum wage for the healthcare industry, which went into effect last year, on October 16, 2024, increasing the state minimum wage for most employers in the healthcare industry to between $18-$23/hour, depending on the type of healthcare facility.

Some healthcare facilities have a minimum wage increase from $23 to $24/hour beginning July 1, 2025, such as:

• Hospitals or integrated health systems with 10,000 or more full-time employees (including skilled nursing facilities operated by these employers will see a July 1 increase from $23 to $24/hour
• Dialysis Clinics
• Covered Health Care Facilities run by Large Counties (more than five million people as of 1/1/23)

Employers in the healthcare industry should consult the DIR’s Frequently Asked Questions to determine whether they are covered by the healthcare minimum wage law and when to expect the next minimum wage increase.

Reminder: To qualify as exempt, employees must be paid 1.5 times the healthcare minimum wage or 2 times California’s minimum wage, whichever is greater!

Questions?  Our HR Advisors are just a phone call away at 800-399-5331