Starting January 1, 2025, California’s minimum wage will rise by 50 cents, increasing from $16 to $16.50 per hour for most workers, excluding those employed in fast food and certain healthcare facilities. The adjustment, announced by the California Labor Commissioner’s Office, is part of the state’s annual inflation-based wage review, which has been in place since the minimum wage reached $15 per hour in 2016.
Higher Minimum Wages in Local Jurisdictions
Several cities and counties in California will have minimum wages exceeding the state rate in 2025. According to data compiled by UC Berkeley, these areas include:
- Mountain View: $19.20
- West Hollywood: $19.65
- Sunnyvale: $19.00
- Santa Clara, Palo Alto, and others: $18.20 or higher
A complete list of local minimum wage rates for 2025 is available, showing variations across cities like Oakland, San Diego, and San Jose.
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Exceptions for Specific Industries
In addition to the statewide increase, specialized laws already in place will continue to provide higher wages for certain workers:
- Fast Food Workers: Minimum wage set at $20 per hour since March 2024.
- Healthcare Workers: Minimum wage increased to $25 per hour as of November 2024.
National Comparisons
California’s minimum wage remains one of the highest in the U.S., but it is slightly below Washington, D.C.’s, which leads the country at $17.50 per hour.
Background
This increase comes despite California voters rejecting Proposition 32, which proposed gradually raising the state minimum wage to $18 per hour by 2026.
Residents are reminded that local jurisdictions often have higher rates than the state minimum, and businesses must comply with the highest applicable rate.
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