California MINIMUM WAGES

California State Minimum Wage for 2025

California’s minimum wage laws have evolved quite significantly, aiming to boost low-wage workers’ earnings while supporting the state’s economic growth.  

As of January 1, 2024, the minimum wage in California is $16.00/hour for all employees.  

Federal Minimum Wage

The federal minimum wage, set by the Fair Labor Standards Act (FLSA), remains at $7.25 per hour. This rate has stayed the same since July 24, 2009.

California State Minimum Wage

For 2024, California has set a new baseline wage of $16.00 per hour for all employers, regardless of their size.

Minimum wage in California based on employees’ count

California has had a structured phase-in schedule to reach a $16 minimum wage for all employers, and it began in 2017. Also, the minimum wage rates vary based on the number of employees an employer has.
The following table showcases the progression of the minimum wage since 2017:

Based on Employee Types 

Here’s a detailed look at the minimum wage rates based on employee types in California, also reflecting specific needs and regulations for different sectors: 

• General Employees: The statewide minimum wage is set at $16.00 per hour for all employees, regardless of whether they work for large or small employers. 

• Healthcare Workers: 

Large Healthcare Providers and Integrated Health Systems: $23.00 per hour 

Hospitals: $18.00 per hour 

Licensed Skilled Nursing Facilities: $21.00 per hour 

Other Healthcare Facilities: $21.00 per hour 

• Fast Food Workers: $20.00 per hour 

• Hotel Workers: Minimum wage rates for hotel workers typically follow the general rate of $16.00 per hour, though specific hotels might have additional agreements or higher rates. 

• Exempt Employees: For executive, professional, and administrative employees, the minimum salary threshold is set at $66,560 annually, which is double the state minimum wage. 

• Nonexempt Employees: These employees, who are eligible for overtime, also receive the standard $16.00 per hour, with overtime pay required for hours worked beyond 40 per week or 8 per day. 

These rates are part of California’s effort to address wage disparities across various sectors and ensure fair compensation for different types of work. 

Minimum Wages in California Cities

Here’s the chart showcasing Minimum Wages in Major California Cities:

Historical data of California Minimum Wages 

Since 1996, the state has regularly adjusted its minimum wage rates to improve workers’ financial well-being. 

In the early 2000s, the Industrial Welfare Commission (IWC) made notable increases; the minimum wage rose from $5.75 to $6.25 per hour on January 1, 2001, and to $6.75 per hour on January 1, 2002.  

These changes placed California among the states with higher minimum wages than the federal rate of $5.15 per hour during that time.

Key changes over the Years:

• March 1, 1998: From $5.15 to $5.75 per hour 

• January 1, 2001: From $5.75 to $6.25 per hour 

• January 1, 2002: From $6.25 to $6.75 per hour 

• January 1, 2007: From $6.75 to $7.50 per hour 

• January 1, 2008: From $7.50 to $8.00 per hour 

• July 1, 2014: From $8.00 to $9.00 per hour 

• January 1, 2016: From $9.00 to $10.00 per hour 

• January 1, 2017: $10.50 per hour for employers with 26+ employees; $10.00 for those with 25 or fewer employees. 

• January 1, 2018: $11.00 per hour for employers with 26+ employees; $10.50 for those with 25 or fewer employees. 

Exemptions in Minimum Wages of California

California’s minimum wage exemptions are designed to ensure fair compensation based on job duties and salary thresholds, adhering to both federal and state regulations.

Federal and State Exemption Criteria

The Fair Labor Standards Act (FLSA) provides federal guidelines to determine if a job is exempt from minimum wage and overtime requirements. California adds additional criteria, including those set by SB 525.

Specific Exemptions: 

• To be exempt, an employee’s salary must be at least 150% of the healthcare worker minimum wage or 200% of the California state minimum wage, whichever is greater, for full-time employment. 

• The FLSA’s job duties tests evaluate whether an employee’s primary responsibilities fall under executive, administrative, or professional categories.Implications for Employees: 
  • Exempt Employees: Those meeting both federal and state exemption criteria are not entitled to overtime pay and do not need to track hours worked. 
  • Non-Exempt Employees: Employees who don’t meet the exemption criteria must track their hours worked and are entitled to overtime pay for hours exceeding 40 per week. They are also paid on a biweekly pay cycle. 

  If a position is reclassified as non-exempt, employees must: 

  • Track their daily hours worked. 
  • Receive overtime pay for hours worked over 40 per week. 
  • Be paid on a biweekly pay cycle, with hourly pay calculated by dividing the annual salary by 2,088 hours (e.g., $52,200 annual salary ÷ 2,088 = $25 per hour). 

  Preparing for the Change 

  To prepare for the conversion to non-exempt status and the new biweekly pay schedule, employees are required to review their personal budget and determine their income needs. They also need to review their current tax withholding elections to ensure they are still appropriate for the new pay cycle.