As 2025 begins, many California jurisdictions are implementing local minimum wage increases. Employers should review the updated rates for the cities where their employees work and make necessary adjustments by January 1 to ensure compliance with these changes.

Local Minimum Wage Increases

Here’s a breakdown of the new minimum wage rates across California:

  • Belmont: $18.30/hour
  • Burlingame: $17.43/hour
  • Cupertino: $18.20/hour
  • Daly City: $17.07/hour
  • East Palo Alto: $17.45/hour
  • El Cerrito: $18.34/hour
  • Foster City: $17.40/hour
  • Half Moon Bay: $17.47/hour
  • Hayward: $17.36/hour (26+ employees); $16.50/hour (25 or fewer employees)
  • Los Altos: $18.20/hour
  • Menlo Park: $17.10/hour
  • Mountain View: $19.20/hour
  • Novato: $17.27/hour (100+ employees); $17/hour (26-99 employees); $16.42/hour (1-25 employees, unless state minimum wage applies at $16.50/hour)
  • Oakland: $16.98/hour
  • Palo Alto: $18.20/hour
  • Petaluma: $17.97/hour
  • Redwood City: $18.20/hour
  • Richmond: $17.77/hour
  • San Carlos: $17.32/hour
  • San Diego (City): $17.25/hour
  • San Jose: $17.95/hour
  • San Mateo (City): $17.95/hour
  • San Mateo County: $17.46/hour
  • Santa Clara: $18.20/hour
  • Santa Rosa: TBD
  • Sonoma (City): $18.02/hour (26+ employees); $16.96/hour (25 or fewer employees)
  • South San Francisco: $17.70/hour
  • Sunnyvale: $19.00/hour
  • West Hollywood: $19.65/hour

In addition, the statewide minimum wage will increase to $16.50/hour for all employers starting January 1, 2025, regardless of size.

Other Key Updates

1. Industry-Specific Wage Laws:

  • Fast Food Employees: New minimum wage effective April 1, 2024.
  • Health Care Workers: New minimum wage effective October 16, 2024.

2. Exempt Employee Thresholds:
The state minimum wage determines the salary threshold for administrative, executive, and professional exemptions. In 2025, exempt employees must earn at least $68,640 annually. Fast food and health care worker classifications may also have specific exemption thresholds under new wage laws.

Compliance Requirements

Employers must comply with local minimum wage ordinances, including notice, posting, and recordkeeping requirements. Failure to do so can result in fines, penalties, or civil action. Key steps to ensure compliance:

  • Display updated minimum wage posters in a visible location, such as break rooms.
  • Provide physical copies of posters to remote employees.
  • Review and update payroll systems to reflect new wages.

Take Action Now

If you have employees working in the listed jurisdictions, make the necessary adjustments to wages, update your workplace postings, and review your compliance protocols to start the year off right. For tailored guidance on navigating California’s complex wage laws, reach out to Ignite HR Solutions—we’re here to help you stay compliant and prepared.