Key Takeaway:
California minimum wage laws require employers to pay the highest applicable local, state, or federal rate. Rates vary by city, county, and employer size, with 2025 increases reaching up to $19.65 per hour in West Hollywood.
Minimum wage refers to the lowest hourly rate of pay that employees are entitled to receive for their work. This rate can vary depending on your city or county, as local minimum wage rates may be higher than state or federal rates. In California, the applicable rate may also depend on employer size and industry type.
Anyone who works at least two hours in one week within California is entitled to the state minimum wage for the hours worked. The employee’s residence, employer headquarters, or job title generally does not affect eligibility, though some workers may be exempt based on the nature of their work.
All employees must be paid the minimum wage required by federal law. Almost all employees in California must also be paid the higher state or local minimum wage when applicable. Local governments, like counties and cities, can set their minimum wage rates, and employers must pay whichever rate is highest among local, state, or federal law.
For example, Pasadena’s Minimum Wage Ordinance sets a higher rate than both the California and federal minimum wage. Beginning July 1, 2025, Pasadena employers must pay employees at least $18.04 per hour. This applies to both adult and minor employees who work at least two hours per week in Pasadena.
The ordinance also includes strong enforcement measures—employees can file complaints with the City of Pasadena or in civil court. Violations can result in payment of back wages, reinstatement, penalties, and even criminal prosecution. Pasadena employers must also follow other applicable wage laws, including California’s fast-food worker minimum wage of $20.00 per hour (effective April 1, 2024) for national fast-food chain establishments.
While Washington, D.C., has the highest minimum wage at $17.50 per hour, California has some of the highest state and local rates in the country. The federal minimum wage remains at $7.25 per hour and has not increased since 2009. Many states and cities have acted independently to raise wages, resulting in wide disparities nationwide.
Effective January 1, 2025:
2025 Minimum Wage for Other California Cities (effective July 1, 2025):
Check your pay stubs to ensure you’re receiving the correct minimum wage for your location and industry. If you believe you are being underpaid, contact Freeburg & Granieri, APC for legal guidance.
Now is the time to review payroll practices to ensure compliance with all applicable wage laws. Non-compliance can result in severe financial and legal consequences. Freeburg & Granieri, APC can help you assess and update your policies.
For employees, it is important that you are paid all wages owed, including all applicable minimum wages. Connect with our law firm if you think you have unpaid wages.
For employers, now is the perfect time to review your payroll policies and practices. The liability for failing to comply with minimum wage laws can have devastating effects on your business. Please contact Freeburg & Granieri, APC today to have your payroll policies and practices reviewed.
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