Starting July 1, 2025, minimum wage rates are increasing in several California cities and counties. Employers operating in these areas must be prepared to comply with the new local wage laws to avoid penalties and ensure fair compensation for their employees.
West Hollywood Leads the State
West Hollywood will have the highest minimum wage in California at $19.65 per hour, maintaining its position as a wage leader in the state.
Updated Southern California Local Minimum Wage Rates
If your employees work at least two hours per week within the boundaries of any of the following jurisdictions, you are required to pay the applicable local minimum wage:
- Los Angeles City: $17.87/hour (up from $17.28/hour)
- Los Angeles County – Unincorporated Areas: $17.81/hour (up from $17.27/hour)
- Malibu: $17.27/hour (Note: Malibu has suspended its previously scheduled wage increase for one year to support businesses impacted by the Palisades Fire.)
- Pasadena: $18.04/hour (up from $17.50/hour)
- Santa Monica: $17.81/hour (up from $17.27/hour)
State vs. Local Requirements
The California state minimum wage is currently $16.50/hour. However, when a local minimum wage ordinance sets a higher rate, employers must pay the higher local rate. However, the threshold for an exempt employee is based on the State’s minimum wage, not the local minimum wage. Therefore, the threshold remains at $68,640.00 per year despite the local increases.
Employer Compliance Checklist
To remain compliant by July 1, 2025:
- Review your employees’ work locations to determine if local wage laws apply.
- Post updated minimum wage notices in conspicuous areas at each job site.
- Notices must be in English, Spanish, and any other language used to communicate job duties.
- For remote employees or those without a fixed worksite, provide the notice electronically or by mail.
Staying on top of local wage updates is critical for California employers. Consult with your employment law counsel to ensure compliance and avoid potential wage-and-hour claims.