California Minimum Wage 2025: What Workers Need to Know Now

California Minimum Wage 2025: If you’re living or working in California this year, it’s very important to know how the minimum wage rules have changed in 2025. Starting from January 1, 2025, the state of California raised the minimum wage for all workers no matter the size of the company to $16.50 per hour.

This is now the statewide base rate, and it applies to both small and large employers. So, if someone is working full-time, which usually means 40 hours a week, they can now expect to earn around $34,320 per year at the least.

Can Current Student’s Loan Borrowers Keep Their Repayment Plans Under the Big Beautiful Bill?

The US cities that will pay the most in 2025

1. Emeryville: $19.90.
2. Berkeley and San Francisco: $19.18.
3. Los Angeles: $17.87.
4. Milpitas: $18.20 dollars.
5. Pasadena: $18.04 dollars.
6. Santa Monica: $17.81.
7. West Hollywood: $20.2 dollars.

But that’s just the starting point. Many cities across California have decided to offer higher wages than the state’s base. Some places, like Emeryville, San Francisco, and Los Angeles, have pushed the minimum wage even closer to $20 per hour. The reason is simple: California’s cost of living is really high, especially when it comes to rent, groceries, and basic expenses. Local governments want to make sure workers can actually afford to live where they work, so they set local rates above the state minimum.

Some Workers Must Be Paid Even More

Now, if someone is considered an exempt employee, meaning they are not paid by the hour but instead have a salaried job with certain responsibilities, the rules change again. Their salary must be at least double the minimum wage. That means their yearly income has to be around $68,640 in 2025. This rule is also about fairness, making sure people in salaried jobs are not being underpaid when compared to hourly workers.

Social Security Trust Funds to Run Short by 2034, One Year Earlier Than Expected

How to know how much you should be paid with the minimum wage increase

• Check if your city has a local rate higher than the state rate.
• Identify if your industry has special rules (restaurant, health, hospitality, etc.).
• Compare with the state minimum wage ($16.50).
• Always choose the highest amount that applies to you.
• Check your payslip.
• Your pay stubs should reflect that rate for each hour worked. If not, you could report it to the Labor Commissioner or the California Department of Labor.

One important thing to understand is that California follows the rule of “preemption.” This means if your city or county has a higher minimum wage than the state, your employer must pay you the higher local wage, not just the state base. It protects workers and makes sure they get the best possible rate under the law.