CA Minimum Wage Increases: Cities With The Highest Pay In 2025

CALIFORNIA — Workers making minimum wage in the Golden State are set to get a bump in pay starting at the beginning of 2025.

Though some industries have a much higher floor, the minimum wage in California increases 50 cents to $16.50 an hour on Jan. 1, 2025. That covers all employers, regardless of size. Annual increases are based on changes to the consumer price index using a formula defined by state law.

In November, California voters rejected a ballot measure that would have raised the state minimum wage to a national high of $18 per hour by 2026. Considering the measure's rejection, the Golden State now has the third-highest minimum wage in the U.S., behind Washington D.C. with $17.50 and Washington state with $16.66.

Higher Wages In Certain CA Industries

However, many Californians working in fast food and health care earn higher minimum wages. The minimum wage at many fast food restaurants in the state has been $20 since April 1; an increase from the state's current overall minimum wage of $16.

Despite warnings from fast-food conglomerates and business advocates, the April increase has not led to job losses, according to federal data. In fact, California has added 7,400 jobs to the fast-food industry since the increase took effect.

After several delays due to budget concerns, minimum wage for health care workers in the Golden State increased on Oct. 16, 2024. The exact minimum wage varies depending on the employer and is decided based on a list of factors outlined in state law. Minimum rates are $18, $21 and $23 per hour.

Minimum wages for health care workers are planned to increase over the next decade, with the pay floor hitting $25 between 2026 and 2033 depending on the type of facility.

CA Cities With Higher Minimum Wages

Specific cities have higher minimum wages for some industries. Hospitality workers in Oakland will make $18.36 or $24.48 per hour beginning Jan. 1, depending on employer-provided benefits. The city's minimum wage for all other workers will raise to $16.89 beginning next year.

A December decision in Los Angeles made it so wages for tourism workers in the city will gradually increase, starting Feb. 1 at $22.50 per hour and reaching $30 by 2028. Nearby in Long Beach, voters approved a hospitality industry minimum wage of $23 beginning July 1, 2024 with similar incremental raises reaching nearly $30 by 2028.

West Hollywood remains at the top of the state's list for highest overall minimum wage at $19.65 per hour.

According to an inventory compiled by the UC Berkeley Labor Center, 40 cities and counties in California have pay rates higher than the state minimum wage. Like the statewide minimum wage, all planned 2025 increases are around 3 percent compared to last year.

There are some exceptions to local minimum wages. Many cities apply the higher wage requirements only to employees who work more than two hours in a year, for example.

Below is a list of cities and counties where the minimum wage increases on Jan. 1:

*Hayward, Novato and Sonoma have a tiered minimum wage system: Pay rates are higher than those listed for larger employers.

+Oakland has a separate, higher minimum wage for hotel workers.

Below is a list of cities and counties where the minimum wage will increase on July 1, with the exact amount to be determined. The listed wages will continue to be in effect in the first half of 2025:

+Santa Monica and Los Angeles have separate, higher minimum wages for hotel workers.

Minimum wage workers in California are among about 9.2 million nationwide who will get a pay bump in 2025.

The pay raises taking effect Jan. 1 will increase worker pay by about $5.7 billion in the 21 states that are boosting the minimum wage, according to an analysis from the Economic Policy Institute, a nonprofit think tank that analyzes the economic effect of policies on primarily low- and middle-income families.

Nationwide, more than a quarter (25.7 percent) of workers getting a minimum wage pay increase are parents, and more than 5.8 million children live in households where an individual will receive a minimum wage hike, the analysis said.

In addition to California, others among the 21 raising the minimum wage in 2025 are Alaska, Arizona, Colorado, Connecticut, Delaware, Illinois, Maine, Michigan, Minnesota, Missouri, Montana, Nebraska, New Jersey, New York, Ohio, Rhode Island, South Dakota, Virginia, Vermont and Washington.

Most minimum wage hikes taking effect Jan. 1 are a result of state laws that tie minimum wage increases to inflation. The raises are automatic in 13 of the states and affect about 56.2 percent of workers getting raises.

The Associated Press contributed to this report.