California sets some of the strongest wage laws in the country. Every year, the state adjusts its minimum wage to reflect cost of living and inflation. For 2025, workers should know what the current rates are and how they apply to different types of employment.
The statewide minimum wage
As of January 1, 2025, the minimum wage in California is $16 per hour for all employers, regardless of size. In the past, smaller businesses with 25 or fewer employees had a lower rate, but that gap closed in 2023. Now, every employer must follow the same statewide minimum wage rule. If you earn less than this, your employer may be breaking the law.
Local city and county wage rates
Some California cities and counties set their own minimum wage rates that are higher than the state requirement. For example, Los Angeles, San Francisco, and Berkeley often set rates above the state level. If you work in a city with a higher local minimum wage, your employer must pay you the local rate instead of the state minimum. Check your city or county rules because they may provide better pay.
Special rules for certain workers
Not all workers fall under the same pay rules. For instance, fast food workers in California have a separate wage requirement of $20 per hour starting in 2024. Health care workers will also see increases under new legislation, with rates that vary by facility type. These special rules mean your industry may have a higher minimum wage than the general state requirement.
Why knowing the minimum wage matters
Understanding the current minimum wage helps you make sure your paycheck matches what the law requires. Employers who pay less than the legal rate may face penalties and owe back pay. By keeping up with the statewide and local rules, you can protect your earnings and ensure you receive the pay you deserve.