California cities raise minimum wage from July 1 

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By: Jennifer Blair

More than 10 cities across California implemented new minimum wage increases on July 1, 2025, following proposals introduced earlier this year, according to CBS News.

 

The hikes come in response to rising inflation and growing concerns over housing affordability, especially in metro areas with higher costs of living. 

 

These latest changes build on earlier adjustments where 25 cities had already raised their minimum wages in January.

 

While some cities raised wages for all workers, others only increased pay for certain industries, like hotels, airports, healthcare, or hospitality. 

 

The new city rates far exceed California’s current statewide minimum of US$16.50 and aim to help low-income workers keep up with inflation and rising housing costs. 

 

Cities Where the New Rates Apply

 

According to the National Law Review and the Economic Policy Institute, the following 10 cities updated their minimum wage rates as at July 1:

 

  • Alameda: US$17.46 (up from US$17.00)
  • Berkeley: US$19.18 (up from US$18.67)
  • Emeryville: US$19.90 (up from US$19.36)
  • Fremont: US$17.75 (up from US$17.30)
  • Los Angeles City: US$17.87 (general), US$22.50 (airport workers)
  • Los Angeles County: US$17.81 (unincorporated areas)
  • Milpitas: US$18.20 (up from US$17.70)
  • Pasadena: US$18.04 (up from US$17.50)
  • San Francisco: US$19.18 (up from US$18.67)
  • Santa Monica: US$17.81 (general), US$22.50 (hotel workers) 

 

It’s worth noting that a minimum wage increase was also due for hotel workers in Los Angeles (along with the new rate for airport workers at: US$22.50). This has temporarily been put on hold after a referendum petition was filed on June 27, 2025 and is now pending further review by the City Clerk.

 

Implications for Employers 

 

Employers in California must pay close attention to local minimum wage laws, not being aware of the law is no excuse for not implementing it. 

 

HR teams are encouraged to review wage audits at least twice a year, ideally in spring and fall, when most changes take effect. That timing helps teams keep up with updates that typically roll out in January or July. 

 

Wages must reflect the location where the work is performed, especially for hybrid and remote teams. Employees must be paid the minimum wage of the city where they work, not where the company is based or where the employee lives.

 

Employers should notify workers in writing about any pay changes. Payroll systems are particularly important. Even when using a payroll provider, employers remain legally responsible if errors occur or wages are miscalculated.

 

Failing to follow these rules can lead to serious consequences. Both existing and ex-employees can take legal action to recover unpaid overtime, missing pay, or other wage issues. 

 

These problems often affect many employees at once, which can lead to Class-action lawsuits or claims under California’s Private Attorneys General Act (PAGA). 

 

Can California Minimum Wage Still Vary by Industry?

 

Yes, industry-based increases are becoming common, with cities setting separate minimum wages for important or high-risk sectors, such as:

 

  • Fast food workers across California must now earn at least US$20/hour under state law
  • Healthcare workers in qualifying facilities are progressing toward US$24/hour, depending on job type
  • Hotel and airport workers in cities like Santa Monica are covered by ordinances separate from citywide wage rules

 

California’s Wage Moves Signal What’s Coming for Other States

 

While California continues to lead with its city-specific wage hikes, several other states and cities are also set to raise their minimum wages, including:

 

  • In Florida, the statewide minimum wage will increase from US$13.00 to US$14.00 on September 30, 2025, as part of the state’s gradual move toward a US$15/hour minimum by 2026.
  • In Oregon, standard wages will rise to US$15.05, with higher thresholds in the Portland metro area (US$16.30) and lower rates in nonurban counties (US$14.05).

 

These changes reflect a national trend of localized adjustments based on regional living costs, much like what’s happening across California. 

 

Employers operating in multiple jurisdictions must continue to monitor and adjust pay practices accordingly.

 

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