July 1st Minimum Wage Hikes: What California Employers Need to Know (and Do!)

July 1st Minimum Wage Hikes: What California Employers Need to Know (and Do!)

The countdown to July 1st is on—and with it comes a fresh wave of minimum wage increases across California. If your business operates in multiple cities or counties, you know just how tricky staying compliant can be.

The good news? We’ve broken it down for you—new rates, practical tips, and an employer compliance checklist to help you stay ahead (and out of hot water).


New Minimum Wages by City (Effective July 1, 2025)

Jurisdiction

New Minimum Wage

Los Angeles County (Unincorporated)

   $17.81/hour

City of Los Angeles

   $17.87/hour

Pasadena

   $18.04/hour

Santa Monica

   $17.81/hour

West Hollywood (Hotel Workers)

   $20.22/hour

West Hollywood (Non-Hotel Workers)

   $19.65/hour (thru 12/31/25)

City of San Diego

   $17.25/hour (in effect since Jan 1, 2025)

Alameda: $17.46 per hour

Berkeley: $19.18 per hour

Emeryville: $19.90 per hour

Fremont: $17.75 per hour

Milpitas: $18.20 per hour

and

San Francisco: $19.18 per hour

Although Malibu typically increases their local minimum wage on July 1, the Malibu City Council approved a one-year suspension of their scheduled minimum wage increase which means Malibu’s local minimum wage will remain $17.27 per hour.


Employer Compliance Checklist – Deadline: July 1, 2025

1. Know Where Work Happens

  • Compliance starts with location. Map out where your team actually performs work (including all remote employees), to determine if any minimum wage ordinances apply. Then, review your employees’ hourly wage rates and make any necessary adjustments by July 1.

2. Meet Employer’s Notice Requirements

  • Labor Code 2810.5 notices must reflect non-exempt employees’ current hourly rate.
  • Make sure all non-exempt employees get the updated notice and keep a copy in the employees’ personnel file.

3. Review and Update Pay Stubs

  • Pay stubs should accurately list new rates and overtime. Small errors can lead to big penalties.

4. Review Multi-Jurisdiction Pay

  • Got employees splitting time across cities? Your payroll software and HR policies must ensure employees are being paid the higher wage rate.

5. Know Your Industry Rules

  • Minimum wage isn’t one-size-fits-all. Some examples:
    • Fast-food workers: $20/hour under AB 1228
    • Healthcare workers: Going to $24/hour on July 1
    • Hotel & airport workers in LA: Could hit $30/hour by 2028 (pending legal challenge)
  • Stay current with local ordinances.

6. Refresh Workplace Posters

  • Cities require official minimum wage notices posted where employees can see them. Outdated or missing posters = compliance risk. 
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