California Increases State Minimum Wage

The State of California’s minimum wage is set to increase to $16.50 per hour (an increase of $0.50 from the current minimum wage of $16.00), on January 1, 2025. The state minimum wage will apply to all employers, regardless of their size.

The increase to the State minimum wage will also affect the minimum salary requirements for full-time exempt employees. As of January 1, 2025, the minimum salary for a full-time exempt employee in California will be $68,640 per year.

As a reminder, California State minimum wage is the minimum threshold for wages in the State. Local jurisdictions – like the City of Los Angeles, Los Angeles County (for unincorporated areas), Santa Monica, West Hollywood, etc.– may have higher minimums. It is important to note that the determination of which minimum rate applies is based on the employee’s location and not the employer’s location.

California employers should check with their local counties or cities to determine the appropriate minimum wage for employees. Employers with any questions regarding wage and hour compliance should contact employment counsel.

Joshua S. Stein is an employment defense attorney.