Are There Changes To The CA Minimum Pay Laws In 2025?

When it comes to employment and minimum wage law, California is one of the most progressive and responsive states in the nation. Following recent state trends, there are a few new changes to California’s minimum wage, but some things did not change.

What Didn’t Change

For decades, California voters have reliably approved increases to their state’s minimum wage – until they didn’t.

Most people expected Proposition 32 to pass in the November 2024 election and were surprised when it lost by a narrow margin of 50.7% to 49.3%. The proposition sought to increase minimum wage for most non-exempt workers in California.

If it had passed, the legislation would have boosted pay from $16 per hour to $17 for the remaining weeks of 2024 then to $18 on January 1, 2025 for companies with at least 26 workers. Those with 25 or fewer employees would have to raise their minimum hourly rate to $17 in 2025.

What Did Change

• California’s Minimum Wage Workers Will Still See A Pay Increase

In 2023, California began adjusting its minimum wage to help workers’ pay keep up with rising costs due to inflation. This means that, regardless of Proposition 32’s failure, the state’s minimum wage will rise in 2025 to $16.50/hour. This increase applies to all businesses, regardless of size.

• CA Workers In Some Industries Will Earn More

Those who earn a salary or work in certain jobs may be exempt from minimum wage and overtime pay requirements. Workers who receive a salary can expect a minimum of $1,320 per week, which works out to $68,640 per year. Exempt computer software employees will receive a minimum hourly rate of $56.97 or an annual salary of $118,657.43. Exempt licensed physicians and surgeons who are paid per hour will see their minimum hourly rate increase to $103.75.

• Workers In Some Towns And Cities Will Enjoy A Boost In Pay

Local CA governments can set minimum wages that are higher than the state mandates. Many of these municipalities bumped up their minimum wages this year. Minimum wage workers in West Hollywood will earn $19.65 per hour, for example, and Mountain View workers can rely on a minimum of $19.20.

Are You Getting the Minimum Wage You Deserve According to California Law? If Not, Contact the California Employment Law Firm at D.Law!

Minimum wage jobs are rarely easy, and if you are like many minimum wage employees, you rely on getting every penny you earn. Many employers periodically increase wages to help their workers as the cost of living rises. Some employers, though, ignore raises in California, so that they can keep more of the company’s profit for themselves.

If your boss is not paying you the legal minimum wage, take action now by contacting or calling D.Law. Our employment lawyer in California employment law and worker‘s rights and can help you get the pay you earned while working in the Bay Area, San Diego, Fresno, Los Angeles, and other CA cities.