California Minimum Wage Set to Rise July 1: Employers Act

CALIFORNIA — Beginning July 1, 2025, businesses across California will face a new set of wage requirements as multiple cities and counties implement increased local minimum wages, adding new complexity and costs for employers already managing a tight labor market.

The statewide minimum wage remains at $16.50/hour, but cities like San Francisco, Emeryville, and Los Angeles are pushing well above that. In some hospitality sectors, wages will climb to nearly $30 per hour, prompting businesses to review compliance and budget plans ahead of the effective date.

Where Wages Are Going Up July 1

At least a dozen jurisdictions will raise minimum wages, some significantly:

San Francisco: $19.18/hour
Emeryville: $19.90/hour
Berkeley: $19.18/hour
Los Angeles (City): $17.87/hour
Pasadena: $18.04/hour
Santa Monica: $17.81/hour
Fremont: $17.75/hour
Alameda: $17.46/hour
Milpitas: $18.20/hour
Unincorporated L.A. County: $17.81/hour

For certain industries, the increases are even steeper. West Hollywood hotel workers must be paid $20.22/hour, and in Long Beach, that figure jumps to $25/hour. Under Los Angeles’ hospitality ordinance, some hotel and airport workers could earn as much as $30.15/hour.

Why Employers Must Prepare Now

The cost of inaction is high. As explained by LinkedIn’s legal contributor, employers failing to comply risk:

Lawsuits and wage claims
Liquidated damages (double the unpaid wage amount)
Waiting time penalties (up to 30 days of wages)
Potential class actions or state enforcement under PAGA (Private Attorneys General Act)

Even accidental underpayment could trigger thousands of dollars in fines, especially for multi-location businesses juggling different local rules.

Action Plan: How to Stay Compliant

To avoid these costly penalties, employers should take the following steps immediately:

Verify the applicable minimum wage in every city and county where employees work.
Update payroll systems before the first pay period that includes July 1.
Distribute new wage notices as required under California Labor Code section 2810.5.
Post updated wage posters visibly in workplaces, including for remote or mobile teams.
Review pay for mobile or cross-jurisdiction workers, ensuring the highest applicable rate is used.
Watch for sector-specific ordinances affecting hotels, airports, and healthcare settings.
Address wage compression — entry-level increases may demand raises for senior staff to preserve morale.

Not Just Hourly Workers Impacted

While the new wage rules target non-exempt hourly employees, there’s a ripple effect on salaried workers too. In California, exempt employees must earn at least twice the state minimum wage — currently pegged at $66,000/year. That figure could increase again in January 2026, depending on inflation and future legislation.

What Employers Should Expect in 2026

Because most of these local laws are tied to annual inflation adjustments, further increases are likely in both July and January. Ballot initiatives and legislative proposals — particularly in hospitality and healthcare — may push some sectors even higher in the next 18 months.

July 1 Is a Deadline, Not a Guideline

“Don’t wait,” the article stresses. The time to update payrolls, revise employee documentation, and train HR teams on city-specific laws is now. For those managing teams in multiple locations, automation, legal counsel, and scheduled policy audits will be crucial.

Have these changes impacted your business in California? Tell us how you’re handling wage updates at SaludaStandard-Sentinel.com.