Thousands of workers in more than a dozen cities and states will receive a new salary raise in July, thanks to the coming into force of new regulations. This is despite the fact that several regions have already adopted increases to the minimum wage at the beginning of the year.
The National Employment Law Project reports that beginning of July 1, over twenty different jurisdictions, including states, towns, and municipalities, will witness an increase in their minimum wages. The state of California will experience the most visible changes in this regard. Employers who had workers in the state were expected to study the applicable local wage regulations, post the required notices, and implement appropriate raises for their employees in order to ensure compliance with the legal requirements.
State and local minimum wage increases effective July 1, 2025
The minimum wage for the state of California was established at $16.50 per hour. Nevertheless, a number of municipalities and counties have passed ordinances that establish minimum salaries that are higher than the threshold set by the state. When it comes to certain areas, companies are required to always pay the highest wage rate that is applicable.
Listed below is a compilation of municipalities and counties that have ratified hikes in their respective minimum wage rates, which became effective on July 1, 2025.
- Alameda: $17.46 per hour
- Berkeley: $19.18 per hour
- Emeryville: $19.90 per hour
- Fremont: $17.75 per hour
- Los Angeles (city): $17.87 per hour
- Los Angeles County (unincorporated areas): $17.81 per hour
- Milpitas: $18.20 per hour
- Pasadena: $18.04 per hour
- San Francisco: $19.18 per hour
- Santa Monica: $17.81 per hour
Salary increases by sector from 1 July 2025
Certain communities in the state of California have decided to implement specific wage increases for particular industries, and these increases will go into effect on July 1st:
- Individuals who are employed in large hotels in Los Angeles (those with more than sixty rooms) and at the airport will receive $22.50 per hour. The possibility exists, however, that this rise might be placed on hold if a petition for a referendum is approved. If this were to occur, the hourly rate would be raised to $21.01 in accordance with the typical annual increase.
- Additionally, hotel employees in Santa Monica will be paid the same salary as those in Los Angeles, which means that they have the potential to earn either $22.50 or $21.01 per hour, depending on the outcome of the referendum.
- Beginning in July 2025 and continuing through June 2026, the minimum wage for hotel employees in West Hollywood will increase to $20.22 per hour for a period of one year.
It is essential to take note of the fact that employees in the state of California who are exempt from having to undertake executive, professional, or administrative activities are required to get a minimum yearly income of approximately $68.640. The fact that this amount is determined by multiplying the state minimum pay by itself means that any increase in the minimum wage will automatically result in an increase in this threshold. Nevertheless, increases that are imposed by certain localities or industries do not affect this wage requirement in any way.
