Local Minimum Wage Increases Take Effect on July 1

Local Minimum Wage Increases Take Effect on July 1

Since 2009, the federal minimum wage has remained at $7.25 per hour. This means employers nationwide are prohibited from paying employees less than $7.25 per hour. However, states nationwide, including California, have their own minimum wage rules reflecting the rising cost of living. The current minimum wage in California is $16.50. Employers must pay the higher rate if the state minimum wage exceeds the federal minimum wage. Therefore, California employers must pay workers at least $16.50 per hour.

In addition to state-level increases, several cities and counties have enacted local minimum wage rules that set rates higher than the state and federal levels. These local laws are meant to address the specific economic conditions of the communities. Usually, local minimum wage rates are adjusted in response to local inflation rates and the cost of living. On July 1, 2025, several California cities will see an increase in local minimum wages. The following is a non-exhaustive list of the local minimum wage increases that are set to take effect on July 1, 2025;

• City of Los Angeles: $17.87/hour, up from $17.28
• Berkeley: $19.18/hour, increased from $18.67
• Emeryville: $19.90/hour, up from $19.36
• Santa Monica: $17.81/hour, up from $17.27
• Milpitas: From $17.70 per hour to $18.20 per hour
• San Francisco: $19.18/hour, up from $18.67. Here, those receiving government support will be paid $16.97
• Fremont: From $17.30 per hour to $17.75 per hour
• West Hollywood: $19.65 per hour. Individuals in the hotel industry will earn $20.22 per hour.

The above increases could mean that you, as an employee, are set to receive up to $250 more per month, especially if you are in an area where the cost of living has increased significantly in recent years.

Important Considerations for Employees

As local minimum wage increases take effect across California, it is vital that you know the minimum wage applicable to your city or county. In California, if the local minimum wage is higher than the state’s minimum wage, employers are required to pay the higher local wage. Knowing the minimum wage applicable to your city or county can help you ensure your employer is paying you the right amount.

Employees should check their pay stubs regularly after July 1 to confirm that any local increase has been implemented correctly. Depending on your sector, you may be entitled to higher wages, so it is crucial that you check if additional rates apply to your job.

What to Do if an Employer Underpays You

If an employer pays you less than you are entitled to, you need to take action quickly. First, politely bring up the issue with your employer or HR department. Sometimes, mistakes are unintentional and can be corrected quickly. Maintain detailed records of hours worked and payment received, as this documentation will be vital if you take further action.

If the issue is not resolved, consult an employment lawyer. An attorney can help you explore all your legal options, including filing a wage claim with the Division of Labor Standards Enforcement (DLSE).

Contact a California Employment Lawyer

Contact a qualified California employment lawyer if you have questions or need help with an employment-law related matter.