EMPLOYMENT LAW NEWS
California Minimum Wage
By Dana Holle
Updated August 2024
Employers that operate in California must monitor the ever-changing minimum wage rates in local jurisdictions which will grow more challenging as the jurisdictions change from regularly scheduled increases to indexing increases.
California Minimum Wage in 2025
In 2022, California became the first state to reach a $15 standard minimum wage for large employers, and it continues to increase each year based on the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W).
Effective Jan. 1, 2025, California has announced that its minimum wage will increase to:
- $16.50 per hour
California prohibits employers from taking a tipped credit, so there is no separate rate for tipped workers.
With the above rates in mind, California has a minimum wage ballot measure poised for election day, or Proposition 32, which would increase the state minimum wage to $18.00 on Jan. 1, 2025, for large employers and $17.00 for small employers. If approved, this wage hike would have significant impact on the minimum wage landscape at the local level, as many cities increasing their minimum wage rates are still below that $18 threshold.
View our latest blog for 2025 minimum wage rates by state.
Previous blog post below:
California State Minimum Wage Updates for 2024:
Employers in California must comply with numerous local minimum wage ordinances, which often exceed federal and state minimum wage rates in 2024.
Hourly Employees:
On January 1, 2024, California’s minimum wage increased to $16 per hour.
Exempt Employees:
On January 1, 2024, the minimum annual salary for exempt employees in California increased to $66,560, or $5,546.67 monthly.
Fast-Food Employees:
On April 1, 2024, the minimum wage for specific fast-food employees in California, as per AB 1228, increased to $20.00/hour.
Health Care Employees:
Effective May 1, 2024, the minimum wage for certain covered health care employees in California, under SB-525, will increase. There are several minimum wage rates that may apply depending on the type of health care facility.
Learn More About California’s New Fast Food Minimum Wage Law
The background of minimum wage in California
California’s various minimum wage rates across the state make it one of the most complex states to track in the United States. In 2023, California’s state minimum wage was $15.50 per hour.
California has in excess of 40 local jurisdictions with their own minimum wage ordinances. And many of them have moved to indexed rates, meaning they increase based on the applicable Consumer Price Index (CPI) instead of a set schedule.
It should be noted that the state does not allow employers to take tip credits, so there are no separate rates for employees who regularly receive tips. And some cities have separate rates for hotel workers.
California City Minimum Wage Rates in 2024:
The dozens of cities in California with their own minimum wage rates update at two times of the year:
- Jan. 1
- July 1
Below is a rundown of the rates for 2024.
Of course, new employment laws in California are passed all the time, and employers should monitor their locations for potential new minimum wage rates.
| City | Minimum Wage Rate |
| Alameda, CA (city) | $16.52/hour (as of 7/1/2023) |
| Belmont, CA | $17.35/hour (as of 1/1/2024) |
| Berkeley, CA | $18.07/hour (as of 7/1/2023) |
| Burlingame, CA | $17.03/hour (as of 1/1/2024) |
| Cupertino, CA | $17.75/hour (as of 1/1/2024) |
| Daly City, CA | $16.62/hour (as of 1/1/2024) |
| East Palo Alto, CA | $17.00/hour (as of 1/1/2024) |
| El Cerrito, CA | $17.92/hour (as of 1/1/2024) |
| Emeryville, CA | $18.67/hour (as of 7/1/2023) |
| Foster City, CA | $17.00/hour (as of 1/1/2024) |
| Fremont, CA | $16.80/hour (as of 7/1/2023) |
| Glendale, CA | $19.74/hour for hotels with 60 or more guest rooms (as of 7/1/2023) |
| Half Moon Bay, CA | $17.01/hour (as of 1/1/2024) |
| Hayward, CA | $16.00/hour for small businesses (25 or fewer employees); $16.90/hour for large businesses (26 or more employees) (as of 1/1/2024) |
| Long Beach, CA | $17.55/hour for hotels with 100 or more guest rooms (as of 7/1/2023) |
| Los Altos, CA | $17.75/hour (as of 1/1/2024) |
| Los Angeles County, CA (unincorporated) | $16.90/hour (as of 7/1/2023) |
| Los Angeles, CA (city) | $16.78/hour; $19.73/hour for hotels with 60 or more rooms (as of 7/1/2023) |
| Malibu, CA | $16.90/hour (as of 7/1/2023) |
| Menlo Park, CA | $16.70/hour (as of 1/1/2024) |
| Milpitas, CA | $17.20/hour (as of 7/1/2023) |
| Mountain View, CA | $18.75/hour (as of 1/1/2024) |
| Novato, CA | $16.04/hour for small businesses with 1-25 employees; $16.60/hour for large businesses with 26-99 employees; and $16.86/hour for very large businesses with 100 or more employees. (as of 1/1/2024) |
| Oakland, CA | $16.50/hour; $17.94/hour for hotel workers with Health Benefits; $23.91/hour for hotel workers without Health Benefits (as of 1/1/2024) |
| Palo Alto, CA | $17.80/hour (as of 1/1/2024) |
| Pasadena, CA | $16.93/hour (as of 7/1/2023) |
| Petaluma, CA | $17.45/hour (as of 1/1/2024) |
| Redwood City, CA | $17.70/hour (as of 1/1/2024) |
| Richmond, CA | $17.20 (as of 1/1/2024) |
| San Carlos, CA | $16.87/hour (as of 1/1/2024) |
| San Diego, CA (city) | $16.85/hour (as of 1/1/2024) |
| San Francisco, CA (city & county) | $18.07/hour (as of 7/1/2023) |
| San Jose, CA | $17.55/hour (as of 1/1/2024) |
| San Mateo, CA (city) | $17.35/hour (as of 1/1/2024) |
| San Mateo County, CA (unincorporated) | $17.06/hour (as of 1/1/2024) |
| Santa Clara, CA (city) | $17.75/hour (as of 1/1/2024) |
| Santa Monica, CA | $16.90/hour; $19.73/hour for hotels and businesses operating on hotel property (as of 7/1/2023) |
| Santa Rosa, CA | $17.45/hour (as of 1/1/2024) |
| Sonoma, CA (city) | $16.56/hour for small employers (25 or fewer employees); $17.60/hour for large employers (26 or more employees) (as of 1/1/2024) |
| South San Francisco, CA | $17.25/hour (as of 1/1/2024) |
| Sunnyvale, CA | $18.55/hour (as of 1/1/2024) |
| West Hollywood, CA | $19.08/hour (as of 7/1/2023) |
Conclusion
The federal standard minimum wage of $7.25 has not increased in more than a decade. It’s the longest stretch in the nation’s history without a minimum wage bump.
This situation has prompted local jurisdictions to pass a flurry of new minimum wage laws over the past few years. And in progressive states like California, minimum wage has become a hot employment law topic.
Employers that operate in California must monitor the ever-changing minimum wage rates in local jurisdictions which will grow more challenging as the jurisdictions change from regularly scheduled increases to indexing increases.
Related: California Healthcare Workers Minimum Wage Law
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This Employment Law News blog is intended for market awareness only, it is not to be used for legal advice or counsel.
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