Key Takeaway:
The United States has a federal minimum wage of $7.25 per hour, but California’s is higher at $16.50 per hour as of January 1, 2025. Certain industries, like fast food and healthcare, and many cities have even higher rates, and employers must follow the highest applicable wage.
California’s minimum wage has steadily increased over the past two decades. In 1998, it was $4.25 per hour. By 2006, it had risen to $6.75 per hour. In 2022, the rate reached $15.00 per hour for all employers.
As of January 1, 2025, California’s minimum wage is $16.50 per hour for all employers, regardless of size. This is the base rate, but certain industries and cities have higher requirements.
Starting April 1, 2024, all covered fast food restaurant employees must be paid at least $20.00 per hour. Employers must also post the required Minimum Wage Order Supplement for Fast Food Restaurant Employees in the workplace.
Starting July 1, 2025, certain healthcare workers must receive a higher minimum wage, depending on the type of facility. The exact rates and covered positions are outlined in the Health Care Worker Minimum Wage FAQs provided by the State of California. Clinics that qualify may apply for the Clinic Waiver Program.
California Governor Jerry Brown increased the state’s minimum wage to $10 an hour as of July 1, 2017. This follows a series of incremental increases over the last few years, which saw California’s minimum wage rise to $16.50 in 2025. Effective January 1, 2017, California will increase the minimum wage for all industries yearly.
The increase in labor costs for businesses is likely to be costly and frustrating. Employers in California need to be aware of the financial implications this change may have on their business to prepare themselves for the increase in local wages accordingly.
| Date | Minimum Wage for Employers with 25 or Less Employees | Minimum Wage for Employers with 26 or More Employees |
| January 1, 2017 | $10.00/hr | $10.50/hr |
| January 1, 2018 | $10.50/hr | $11.00/hr |
| January 1, 2019 | $11.00/hr | $12.00/hr |
| January 1, 2020 | $12.00/hr | $13.00/hr |
| January 1, 2021 | $13.00/hr | $14.00/hr |
| January 1, 2022 | $14.00/hr | $15.00/hr |
| January 1, 2023 | $15.50/hr | $15.50/hr |
| January 1, 2024 | $16.00/hr | $16.00/hr |
| January 1, 2025 | $16.50/hr | $16.50/hr |
In addition to the state minimum wage, many California cities and counties have higher local rates. The University of California, Berkeley maintains a list of City and County Minimum Wages.
The following table lists the updated rates effective in 2025 for cities in California above the state minimum wage:
2025 City Minimum Wage Updates
| City/County | Applies to | Minimum Wage Rate per Hour | Effective Date |
| Alameda | All employees | $17.00 | 7/1/2024 |
| Belmont | All employees | $18.30 | 1/1/2025 |
| Berkeley | All employees | $18.67 | 7/1/2024 |
| Burlingame | All employees | $17.43 | 1/1/2025 |
| Cupertino | All employees | $18.20 | 1/1/2025 |
| Daly City | All employees | $17.07 | 1/1/2025 |
| East Palo Alto | All employees | $17.45 | 1/1/2025 |
| El Cerrito | All employees | $18.34 | 1/1/2025 |
| Emeryville | All employees | $19.36 | 7/1/2024 |
| Foster City | All employees | $17.39 | 1/1/2025 |
| Fremont | All employees | $17.30 | 7/1/2024 |
| Half Moon Bay | All employees | $17.47 | 1/1/2025 |
| Hayward | Companies with 26 or more employees | $17.36 | 1/1/2025 |
| Companies with 25 or fewer employees | $16.50 | 1/1/2025 | |
| Los Altos | All employees | $18.20 | 1/1/2025 |
| City of Los Angeles | All employees | $17.28 | 7/1/2024 |
| Los Angeles – Unincorporated County | All employees | $17.27 | 7/1/2024 |
| Malibu | All employees | $17.27 | 7/1/2024 |
| Menlo Park | All employees | $17.10 | 1/1/2025 |
| Milpitas | All employees | $17.70 | 7/1/2024 |
| Mountain View | All employees | $19.20 | 1/1/2025 |
| Novato | 25 or fewer employees | $16.42 | 1/1/2025 |
| 26 to 99 employees | $17.00 | 1/1/2025 | |
| 100 or more employees | $17.27 | 1/1/2025 | |
| Oakland | Non-hotel employees | $16.89 | 1/1/2025 |
| Palo Alto | All employees | $18.20 | 1/1/2025 |
| Pasadena | All employees | $17.50 | 7/1/2024 |
| Petaluma | All employees | $17.97 | 1/1/2025 |
| Redwood City | All employees | $18.20 | 1/1/2025 |
| Richmond | All employees | $17.77 | 1/1/2025 |
| San Carlos | All employees | $17.32 | 1/1/2025 |
| San Diego | All employees | $17.25 | 1/1/2025 |
| San Francisco | All employees | $18.67 | 7/1/2024 |
| San Jose | All employees | $17.95 | 1/1/2025 |
| San Mateo | All employees | $17.95 | 1/1/2025 |
| San Mateo – Unincorporated County | All employees | $17.46 | 1/1/2025 |
| Santa Clara | All employees | $18.20 | 1/1/2025 |
| Santa Monica | All employees | $17.27 | 7/1/2024 |
| Santa Rosa | All employees | $17.87 | 1/1/2025 |
| City of Sonoma | Companies with 26 or more employees | $18.02 | 1/1/2025 |
| Companies with 25 or fewer employees | $16.96 | 1/1/2025 | |
| South San Francisco | All employees | $17.70 | 1/1/2025 |
| Sunnyvale | All employees | $19.00 | 1/1/2025 |
| West Hollywood | Non-hotel employees | $19.65 | 1/1/2025 |
If your employer fails to pay at least the applicable minimum wage, they are violating California law. When this happens, you have several options for protecting your rights and recovering what you are owed.
One option is to file a complaint with the California Labor Commissioner, who will investigate the matter and determine if a violation has occurred. You can also contact Freeburg & Granieri, APC, to discuss your situation in detail. An attorney can help you seek recovery of unpaid wages, overtime, and any other compensation you are legally entitled to receive.
Final Thoughts
As of January 1, 2025, California employers must pay at least $16.50 per hour, with higher rates for fast food workers, healthcare workers, hotel workers in certain areas, and employees in certain cities or counties. Employers should review both state and local wage laws to ensure compliance and avoid costly penalties.
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