California is one of the largest and fastest-growing states in the United States. It creates a lot of job opportunities in sectors like technology, entertainment, healthcare, and manufacturing. As the state continues to grow steadily, the minimum wage in California increases every year to ensure workers receive fair pay and that wages keep up with the rising cost of living.
What Is The Minimum Wage in California, and Why Is It Important?
The minimum wage rate in California as of January 1, 2025, is $16.50 per hour for all employees, regardless of the company size and the benefits they offer. This update ensures every worker in California gets paid fairly, helping them cope with the increasing cost of living and improve financial security for families across the state. California's minimum wage laws help businesses to stay compliant and also support the local communities to grow stronger.
City-Wise Minimum Wage Rates in California
The minimum hourly wage varies from city to city in California. Many cities have set their own local minimum wage rates based on the cost of living in urban areas, like housing, transportation, and everyday expenses. The local minimum wage is higher than the state which is $16.50 per hour. Here’s the table showing the list of city-wise minimum wages in California.
| City | Minimum Wage Rates in 2025 |
|---|---|
| Alameda | $17.46 |
| Belmont | $18.30 |
| Berkeley | $19.18 |
| Burlingame | $17.43 |
| Cupertino | $18.20 |
| Daly City | $17.07 |
| East Palo Alto | $17.45 |
| El Cerrito | $18.34 |
| Emeryville | $19.90 |
| Foster City | $17.39 |
| Fremont | $17.75 |
| Half Moon Bay | $17.47 |
| Hayward | $17.36 |
| Los Altos | $18.20 |
| Los Angeles | $17.87 |
| Los Angeles County | $17.81 |
| Malibu | $17.27 |
| Menlo Park | $17.10 |
| Milpitas | $18.20 |
| Mountain View | $19.20 |
| Novato | $17.00 |
| Oakland, CA | $16.89 |
| Palo Alto, CA | $18.20 |
| Pasadena | $18.04 |
| Petaluma | $17.97 |
| Redwood City | $18.20 |
| Richmond | $17.77 |
| San Carlos | $17.32 |
| San Diego, CA | $17.25 |
| San Francisco | $19.18 |
| San Jose | $17.95 |
| San Mateo | $17.95 |
| San Mateo County | $17.46 |
| Santa Clara | $18.20 |
| Santa Monica | $17.81 |
| Santa Rosa | $17.87 |
| Sonoma | $17.38 |
| South San Francisco | $17.70 |
Minimum Wage in California Cities based on Employee Count
In cities like Hayward, Novato, Oakland, and more. The minimum wage rate varies based on how many employees a business has.
In Hayward, for businesses with employees between 0 to 25, the minimum wage is $16.50 per hour. For those with employees above 26, it is $17.36 per hour.
In Novato, for businesses with employees below 25, the minimum wage is $16.42 per hour. For those between 26 to 99, it is $17.00, and for employees above 100, it is $17.27.
In Sonoma, for businesses with employees below 25, the minimum wage is $16.96, and for employees above 26, the minimum wage is $18.02.
California Minimum Wage Rate by Industry
Minimum wage rates in California vary by industry to address the different challenges and needs of workers. Take a look at how the minimum wage rate varies across key industries in 2025.
- General Employees: Starting from 2025, California sets a uniform minimum wage rate for all employees as $16.50 per hour, irrespective of the employer’s size.
- Fast Food Employees: From April 1, 2024, the fast food workers across California must be paid a minimum wage of $20.00 per hour. This higher rate aims to acknowledge the demanding nature and pay in this high-contact service sector.
- Healthcare Employees: Post October 16, 2024, certain healthcare workers (based on the complexity/importance of the roles) must be paid higher minimum wages ranging from $18.00 to $24.00 per hour.
- Exempt Employees: The salary threshold for executives, professionals, and administrative roles is set at a minimum of $68,640 per year in California as of 2025. It is to ensure that exempt employees get fair compensation for their work.
- Non-exempt Employees: These employees are eligible for overtime pay and can earn at least $16.50 per hour for any hours over 8 in a day or 40 in a week.
History of California’s Minimum Wage Rates
Minimum wages in California have increased steadily over the past decade to keep pace with the rising cost of living. In 2016, the minimum wage was $10 per hour, and it has increased yearly, reaching $16.50 per hour in 2025. The state will continue to increase the minimum wage each year based on inflation, economic growth, and help workers with better living standards.
FAQs
1. What is the minimum wage rate in California for 2025?
The minimum wage in California is $16.50 per hour for all workers in 2025.
2. What is the expected minimum wage in California for 2026?
The minimum hourly wage rate in 2026 is expected to be $16.90, but the final numbers are yet to be determined by the state.
3. Which California cities pay the highest minimum wage?
The cities that offer the highest minimum wage in California are Emeryville, West Hollywood, San Francisco, Mountain View, and Berkeley.
4. What's the difference between California's and the federal minimum wage?
The federal minimum wage is the lowest hourly pay rate set for workers by the U.S. government, and it’s $7.25 per hour. California's minimum wage is set by the state, and in 2025, it’s $16.50 per hour, much higher than the federal minimum wage. California regularly increases its minimum wage and even allows cities to set higher rates to match the inflation rate and higher cost of living.
5. Are tipped employees paid differently in California?
No, tipped employees in California must be paid the full minimum wage by their employer, and tips are calculated after the full wage is provided.