California Minimum Wage Increases on July 1, 2025

Employers and employees should be aware that several California cities have recently increased their minimum wage on July 1, 2025. 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.

Los Angeles’ Proposed Minimum Wage Increase for Airport and Workers in Large Hotels (60+ rooms) Remains Suspended

Despite the fact that a referendum filed this past June has put this new proposed minimum wage increase on hold, employers need to be aware of what new potential rules they may have to follow. In addition, employees will need to be aware of what new rights and wages they may be entitled to. This is especially important because the potential increase in minimum wage for airport workers and large hotel workers will be significant. If the new minimum wage ordinances are implemented, workers in large hotels and airport workers in the City of Los Angeles will see their minimum wage increase significantly to $30/hour by 2028.

Ringing in the 2025 New Year with Minimum Wage Increases All Around California

California has increased its minimum wage to $16.50 per hour this year, and nearly all of the cities with even higher minimum wages are in Northern California except for San Diego and West Hollywood. If you work or own a business anywhere in California, you need to be aware that minimum wage has increased across the entire state starting in January of 2025.

California Implements Last Minute Exemptions to the $20 Fast Food Minimum Wage.

After some confusion regarding the new $20 fast food minimum wage law, California created some last minute exemptions to help clarify which restaurants are required to pay the new minimum wage. However, the last minute exemptions are narrowly tailored, and the new minimum wage likely applies to most fast food restaurants in California. On a practical level, these narrow exemptions will likely have little impact on the cost of labor for employers. For example, if workers are doing the same jobs at both an airport McDonald’s and a stand-alone McDonald’s, there is little incentive for the workers to continue to work at the airport for less pay. Clearly, a pay increase will likely occur across all facets of the fast food industry.

New Year, New Minimum Wage

Minimum wage increases in 22 states. Some of the largest increases for an hour’s worth of work are found in Delaware, Hawaii, Illinois, Maryland, Nebraska, New Jersey, New York, and Rhode Island. These states increased their minimum wage by at least $1 or more, with some topping the charts at an increase of at least $2.00 an hour (i.e. Hawaii and Maryland).

Employers, Employment, Minimum WageKathleenFebruary 21, 2024minimum wage increase, minimum wage, employees, employer

Update: McDonald’s Confirms that California’s $20 Minimum Wage Will Lead to Increase in Menu Prices (and Possibly More Changes).

Fast food franchisees confirm that they will be increasing menu prices to offset the staggering increase in labor costs due to California’s new $20 minimum wage for all fast food workers. However, the California legislature, in establishing California’s new fast food worker minimum wage, may have failed to deliver high wages to California fast food workers. If the menu prices increase significantly, the fast food workers may find that their higher wages do not significantly increase their buying power at their own workplace- and perhaps in other areas of their life. In addition, if fast food franchisees choose to go fully automated and not hire employees, there are no higher wages for these workers because there will be no wages at all.

Insights

© 2025 Bailey law corporation

Info

Action