Starting on July 1st, workers in 10 counties and cities in California will see a slight increase in their wages as the minimum wage adjustments across various regions will take effect on that day.
According to data from the California Labor Department, the statewide minimum wage was raised from $16 to $16.50 per hour effective January 1st of this year. A proposal to increase the minimum hourly wage to $18 (for employers with 26 or more employees) was rejected by voters in November 2024, which was originally set to be implemented this year.
However, some cities and counties have already passed local ordinances to establish higher wage standards that will come into effect starting July.
In Southern California, the minimum wage in Los Angeles city will increase from $17.28 to $17.87; Los Angeles County from $17.27 to $17.81; Pasadena from $17.50 to $18.04; and Santa Monica from $17.27 to $17.81.
Malibu’s minimum wage was set to increase to $17.27 on July 1st. However, the Malibu City Council has approved a one-year suspension of this wage increase to support businesses affected by the January Palisades Fire.
In Northern California, San Francisco’s minimum wage will rise from $18.67 to $19.18; Alameda from $17 to $17.46; Berkeley from $18.67 to $19.18; Emeryville from $19.36 to $19.90; Fremont from $17.30 to $17.75; Milpitas from $17.70 to $18.20.
California law also mandates that full-time employees not covered by overtime pay regulations (those with fixed annual salaries) must receive wages at least double the state-mandated minimum wage. As of January 1st, these exempt employees in California must earn a minimum annual salary of $68,640.
Despite the state’s minimum hourly wage being $16.50, California Governor Gavin Newsom signed a law last year targeting the fast-food industry, which raised the minimum hourly wage to $20 for half a million fast-food workers across the state starting from April 1st of the previous year. This law authorizes the California Fast Food Council to establish minimum wage standards for the fast-food sector.
Last year, Newsom stated: “California is home to over half a million fast-food workers who’ve been fighting for higher wages and better working conditions for decades.” This controversial wage increase has resulted in menu price hikes, significant layoffs, and a general reduction in work hours.
Currently, the federal minimum wage stands at $7.25 per hour, significantly lower than California’s standards.
Both state and local governments have the authority to set their own local wage laws. As of this year, 45 states and the District of Columbia have implemented their own minimum wage laws in the United States.
According to data from the U.S. Department of Labor, California’s minimum wage ranks second among all 50 states in the U.S., just behind Washington’s $16.66.
On July 1st of this year, the minimum wage in the District of Columbia will increase from $17.50 to $17.95.