It is the end of June and the year is already half over! Tressler’s Labor and Employment Group would like to remind all employers of the changes in minimum wage coming to certain jurisdictions on July 1, 2025. The current state-mandated minimum wage is $16.50/hour. However, certain jurisdictions will require employers to pay higher minimum wages starting July 1, 2025. The following is a non-exhaustive list of the jurisdictions with upcoming minimum wage increases.

Minimum Wage Increases in Southern California (Effective July 1, 2025)

• Los Angeles County (Unincorporated Areas): $17.81/hour (increase from $17.27/hour)
• City of Los Angeles: $17.87/hour (increased from $17.28/hour)
• Pasadena: $18.04/hour (increased from $17.50/hour)
• Santa Monica: $17.81/hour (increased from $17.27/hour)
• City of San Diego: $17.25/hour (note: this has been in effect since January 1, 2025)

Minimum Wage Increases in Northern California (Effective July 1, 2025)

• Berkeley: $19.18/hour (increased from $18.67/hour)
• Emeryville: $19.90/hour (increased from $19.36/hour)
• Fremont: $17.75/hour (increased from $17.30/hour)
• Milpitas: $18.20/hour (increased from $17.70/hour)
• San Francisco: $19.90/hour (increased from $18.67/hour)

In addition, the following jurisdictions will increase industry-specific minimum wages:

• Los Angeles City: $22.50 per hour for hotel and airport employees[1]
• Santa Monica: $22.50 per hour for hotel employees and employees of businesses operating on hotel property
• West Hollywood: $20.22 per hour for hotel employees.

With the increase in minimum wage comes an adjustment in overtime-exempt employee salary calculations. An increase in minimum wage will shift the minimum salary test for the primary overtime exemptions (administrative, executive, and professional), based upon the increased amount. Exempt employees will lose their exempt qualification if they do not receive at least the legally required minimum salary of that jurisdiction. Employers located in jurisdictions with increased minimum wages should check the salaries of their exempt employees to ensure compliance.

All employers in California are encouraged to consult with a member of Tressler’s Employment Law practice group to ensure that their policies are compliant with California’s minimum wage laws. Tressler’s Employment Law practice group has significant experience in ensuring that employers comply with state and federal labor regulations, including California wage and hour policies.

If you have any questions or would like to discuss this topic further, please contact Jihoon Kim at jkim@tresslerllp.com.

[1] Section 10.37.2 of Article 11, Chapter 1, Division 10 of the Los Angeles Administrative Code

About the Author

Jihoon advises employers in management-side labor and employment litigation involving discrimination, harassment, and wage and hour claims. Having also established and managed corporate human resource departments, Jihoon has drafted and reviewed personnel policies, employee handbooks and other employment-related materials, and has conducted investigations and counseled employers in connection with a broad array of employee relations issues, including wage and hour, disability leave, and harassment. Click here to read Jihoon’s full attorney bio.