California Minimum Wage Increases on July 1, 2025

Employers, pay up!

Minimum wage has recently increased in several California cities.

Employers and employees should be aware that several California cities have increased their minimum wage on July 1, 2025. The following cities have increased their minimum wage per hour to the amounts as listed below:

  • Alameda: $17.46

  • Berkeley: $19.18

  • Emeryville: $19.90

  • Fremont: $17.75

  • Los Angeles City: $17.87

  • Los Angeles County: $17.81

  • Milpitas: $18.20

  • Pasadena: $18.04

  • San Francisco: $19.18

  • Santa Monica: $17.81

In addition, on January 1, 2026, the State of California will increase its minimum wage from $16.50 to $16.90 per hour. The state’s minimum wage increase applies to all employers regardless of its size and the number of people it employs. The state’s minimum wage is the least amount you may pay an employee for each hour of work. However, a city many set its own minimum wage that is higher than the state’s. In those cases, the higher minimum wage applies if you employ or work in a city with the higher minimum wage.

Likewise, with the upcoming increase in the state’s minimum wage, the minimum salary required in order to be considered an exempt employee has also gone up. An exempt employee can be paid a salary and is exempt from the minimum wage requirements. Starting on January 1, 2026, an employee must earn at least $70,304 per year in order to be considered an exempt employee. Previously, in 2025, the employee needed to earn at least $68,640 to be considered an exempt employee.

Finally, certain industries may have higher minimum wage or unique exemptions, such as California fast food workers, California health care workers, Los Angeles City hospitality workers, Los Angeles International Airport workers, or computer software employees.

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