New Year, New California Minimum Wage

Starting January 1, 2025, California’s minimum wage will increase from $16.00 to $16.50 per hour for all employers, regardless of size. This statewide increase reflects a cost-of-living adjustment tied to the Consumer Price Index.

For exempt employees, the minimum annual salary will also rise, increasing from $66,560 to $68,640. To qualify as exempt, an employee’s salary must meet this threshold and be paid as a fixed, predetermined amount. Commissions and bonuses do not count toward this salary requirement.

Local Minimum Wages May Be Higher

While $16.50 per hour is the state minimum, many cities and counties in California require higher rates. For example, cities like Berkeley and Sunnyvale have significantly higher minimum wages. If your job involves working in multiple locations, you may be entitled to the highest applicable rate for the hours worked in each jurisdiction.

Industry-Specific Rates

Certain industries in California have unique minimum wage requirements:

• Fast-Food Workers: Beginning April 1, 2024, fast-food workers at chains with more than 60 locations nationwide earned a minimum of $20 per hour. This rate may be adjusted further in 2025 based on economic indicators such as the Consumer Price Index.
• Healthcare Workers: In 2025, healthcare workers in specific facilities must be paid higher rates. For example, employees at large hospitals must earn at least $23 per hour starting January 1, 2025, increasing to $24 per hour on June 30, 2025. Employees at safety net hospitals will earn a minimum of $18 per hour starting January 1, 2025, with an additional increase of 3.5% on June 30, 2025.
• Computer Professionals: Exempt computer professionals must meet specific salary thresholds set under Labor Code section 515.5. For 2025, these thresholds are:
• Minimum hourly rate: $56.97 (up from $55.58 in 2024)
• Minimum monthly salary: $9,888.13 (up from $9,646.96 in 2024)
• Minimum annual salary: $118,657.43 (up from $115,763.35 in 2024)
• Licensed Physicians: Hourly-paid licensed physicians classified as exempt must earn a minimum of $103.75 per hour starting January 1, 2025.

Are You Being Paid Fairly?

Employees have the right to be paid at least the minimum wage for every hour worked, including overtime where applicable. Industry-specific minimum wages ensure fair compensation tailored to the unique demands of certain roles. If you believe your employer is underpaying you or failing to comply with wage and hour laws, you may be entitled to recover unpaid wages and penalties.

If you have questions about your pay or other employment-related concerns, contact Richardson Employment Law, P.C. today for a free consultation.