Minimum Wage Updates Effective July 1, 2025
Here we go again! Beginning July 1, 2025, California, like many other states, will once again see an increase in minimum wages across various counties and cities.
As always, employers must comply with higher rates in counties, cities, or even local municipalities, even if the state minimum is lower. There are some exceptions, like Oregon, which has exemptions for lower rates in some counties than the state minimum.
In California, the current state minimum wage is $16.50 per hour, and in the City of San Diego, it is $17.25 per hour. Neither rate is scheduled to change in July 2025.
CA Minimum Wage Increases Effective 7/1/25
| Locale | Current Minimum Wage Rate | July 1, 2025 Min Wage |
|---|---|---|
|
Alameda |
$17.00 |
$17.46 |
|
Berkeley |
$18.67 |
$19.18 |
|
Emeryville |
$19.36 |
$19.90 |
|
Fremont |
$17.30 |
$17.75 |
|
Los Angeles County |
$17.27 |
$17.81 |
|
City of Los Angeles |
$17.28 |
$17.87 |
|
Milpitas |
$17.70 |
$18.20 |
|
Pasadena |
$17.50 |
$18.04 |
|
San Francisco |
$18.67 |
$19.18 |
|
Santa Monica |
$17.27 |
$17.81 |
Additional State Minimum Wage Increases Effective 7/1/25
| Locale |
Current Minimum Wage Rate |
Minimum Wage Rate on July 1, 2022 |
|---|---|---|
|
Alaska (state) |
$11.91
|
$13.00 |
|
District of Columbia* |
$17.50 |
$17.98 |
|
Illinois – Chicago* |
$16.20 |
$16.60 |
|
Maryland – Montgomery (county) <10 EEs |
$15.00 |
$15.50 |
|
Maryland – Montgomery (county) 11-50 EEs |
$15.50 |
$16.00 |
|
Maryland – Montgomery (county) 51+ EEs |
$17.15 |
$17.65 |
|
Minnesota – Minneapolis |
$15.57 |
$15.97 |
|
Minnesota – Saint Paul <5 EEs |
$12.25 |
$13.25 |
|
Minnesota – Saint Paul 6-100 EEs |
$14.00 |
$15.00 |
|
Oregon (state) |
$14.70 |
$15.05 |
|
Oregon – Non-urban counties (Baker, Coos, Crook, Curry, Douglas, Gilliam, Grant, Harney, Jefferson, Klamath, Lake, Malheur, Morrow, Sherman, Umatilla, Union, Wallowa, and Wheeler counties) |
$13.70 |
$14.05 |
|
Oregon – Portland Metro |
$15.95 |
$16.30 |
|
Washington – Renton 15-499 EEs or $2M revenue |
$18.90 |
$19.90 |
|
Washington – Renton 500+ EEs |
$20.29 |
$20.90 |
|
Washington – Tukwila 15-499 EEs or $2M revenue |
$20.10 |
$21.10 |
*Tipped employees may have different increases and those should be confirmed with local offices.
In addition, there are industry-specific increases, like hotel workers in West Hollywood, who have a higher wage for their workers.
The good news (depending on which side of the coin you’re on) is that the federal minimum wage has not changed for exempt or non-exempt employees this July. The prior increases, effective January 1, 2025, are still in effect. As a refresher, the minimum exempt level wage is $1,128 per week/$58,686 per year. Below is the current chart from the U.S. DOL.
| Earnings Threshold | Minimum Salary Amount Before July 1, 2024 | Minimum Salary Amount Beginning July 1, 2024 | Minimum Salary Amount Beginning January 1, 2025 |
|---|---|---|---|
|
$684 per week (equivalent to a $35,568 annual salary) |
$844 per week (equivalent to a $43,888 annual salary) |
$1,128 per week (equivalent to a $58,656 annual salary) |
|
|
$107,432 per year, including at least $684 per week paid on a salary or fee basis |
$132,964 per year, including at least $844 per week paid on a salary or fee basis |
$151,164 per year, including at least $1,128 per week paid on a salary or fee basis |
|
|
$455 per week (equivalent to a $23,660 annual salary) |
No change |
No change |
|
|
$380 per week (equivalent to a $19,760 annual salary) |
No change |
No change |
|
|
$1,043 per week (or a proportionate amount based on the number of days worked) |
No change |
No change |
|
|
$27.63 per hour |
No change |
No change |
Exemption exceptions exist for certain types of employees, such as outside sales representatives, doctors, lawyers and teachers.
Next Steps
Minimum wage changes are vitally important to keep accurate for your business and employees. You should confirm with your payroll provider that the increases are updated accordingly to ensure all employees are paid correctly.
Should you have additional compensation needs, our services include job creation & maintenance, total rewards plan design, and career framework. Our consultants are ready to assist with any questions and are happy to help guide you through the upcoming adjustments. Contact us today with any questions at info@sdhrconsulting.com.