Minimum Wage Increase Effective 1/1/2025 – California Cities

A blog by HRWatchdog – HR California

Many California jurisdictions are ringing in the new year with local minimum wage increases so California employers should double check the local minimum wage(s) in jurisdictions where their employees work and make any necessary adjustments by January 1 to ensure compliance.

Here’s a breakdown of the local minimum wage rate increases across the state:

• Belmont: $18.30 per hour.
• Burlingame: $17.43 per hour.
• Cupertino: $18.20 per hour.
• Daly City: $17.07 per hour.
• East Palo Alto: $17.45 per hour.
• El Cerrito: $18.34 per hour.
• Foster City: $17.40 per hour.
• Half Moon Bay: $17.47 per hour.
• Hayward: $17.36 per hour for employers with 26 or more employees; $16.50 per hour for employers with 25 or fewer employees (per state law).
• Los Altos: $18.20 per hour.
• Menlo Park: $17.10 per hour.
• Mountain View: $19.20 per hour.
• Novato: $17.27 per hour for employers with 100 or more employees; $17 per hour for employers with 26-99 employees; $16.42 per hour for employers with 1-25 employees (however, small employers must pay California’s higher state minimum wage rate of $16.50 per hour).
• Oakland: $16.98 per hour.
• Palo Alto: $18.20 per hour.
• Petaluma: $17.97 per hour.
• Redwood City: $18.20 per hour.
• Richmond: $17.77 per hour.
• San Carlos: $17.32 per hour.
• San Diego (city): $17.25 per hour.
• San Jose: $17.95 per hour.
• San Mateo (city): $17.95 per hour.
• San Mateo County: $17.46 per hour.
• Santa Clara: $18.20 per hour.
• Santa Rosa: TBD
• Sonoma (city): $18.02 per hour for employers with 26 or more employees; $16.96 per hour for employers with 25 or fewer employees.
• South San Francisco: $17.70 per hour.
• Sunnyvale: $19.00 per hour.
• West Hollywood: $19.65 per hour.

In addition to these changes, starting January 1, 2025, the statewide minimum wage will rise to $16.50 per hour for all employers, regardless of size, along with updated rates for computer professionals and licensed physicians. Employers should also note the increased wages under California’s fast food employee minimum wage law, effective April 1, 2024, and the health care worker minimum wage law, effective October 16, 2024.

As a reminder, the California state minimum wage rate — not the local minimum wage rate — is used to determine the salary threshold for administrative, executive and professional exemptions. Since the threshold is set at two times the statewide minimum wage, employers will need to ensure all exempt employees earn at least $68,640 annually in 2025. Note that both the fast food worker and health care worker minimum wage schedules also include a change to the salary threshold for classifying those workers as exempt.

Additionally, each of the above local minimum wage ordinances have notice, posting and recordkeeping requirements, and employers failing to comply with them may be subject to fines, penalties or even civil action.

Employers with employees working in any of the above cities should make sure they’re complying with any applicable ordinances, including displaying an updated poster in a conspicuous location at your business, such as a break room, and providing a physical copy to remote employees.

Vanessa M. Greene, J.D., Employment Law Subject Matter Expert, CalChamber