California minimum wage laws are more complicated than any other state. In 2025, thirty-six cities and counties will have higher minimum wage rates than the state requires. If you pay minimum wage employees in any of these California cities, we strongly urge you to check with your local tax office(s), and update all local minimum wages wherever necessary, to ensure you're in compliance.
State minimum wage
Effective 1/1/2025. the minimum wage in the state of California is $16.50 for employers of all sizes. However, many cities and counties in California have a higher minimum wage. If you pay employees in these areas, you must ensure you're paying these employees at least the local minimum wage.
How overtime pay works in California
The general overtime provisions are that a nonexempt employee must be paid at least one and one-half times their regular rate of pay for any hours worked over eight hours in any workday or more than 40 hours in any workweek. Eight hours of labor constitutes a day's work, and employment beyond eight hours in any workday or more than six days in any workweek requires the employee to be compensated for the overtime at not less than:
- One and one-half times the employee's regular rate of pay for all hours worked in excess of eight hours up to and including 12 hours in any workday, and for the first eight hours worked on the seventh consecutive day of work in a workweek; and
- Double the employee's regular rate of pay for all hours worked in excess of 12 hours in any workday and for all hours worked in excess of eight hours on the seventh consecutive day of work in a workweek.
There are, however, a number of exemptions from the overtime law. There are also a number of exceptions to the general overtime law stated above. An "exception" means that overtime is paid to a certain classification of employees on a basis that differs from that stated above. To read more about Overtime in California please visit the California Department of Industry Relations website.
Exempt employees and the minimum wage
Exempt employees in California generally earn a minimum salary of no less than twice the state minimum wage for full-time work. The increase in the state minimum wage will also cause an increase in the minimum salary requirement for exempt employees. To find out more information on Exempt employees in California, please visit the California Department of Industry Relations website.
Local minimum wages
Cities and counties in California enact minimum wage changes on the first day of either January or July of each year. Some cities or counties may adjust their minimum wage twice within the year.
New minimum wage requirements go into effect on January 1, 2025 in these areas:
| Belmont | $16.20 | Oakland | $15.06 |
| Burlingame | $15.60 | Palo Alto | $16.45 |
| Cupertino | $16.40 | Petaluma | $15.85 |
| Daly City | $15.53 | Redwood City | $16.20 |
| East Palo Alto | $15.60 | Richmond | $15.54 |
| El Cerrito | $16.37 | San Carlos | $15.77 |
| Half Moon Bay | $15.56 | San Diego | $15.00 |
| Hayward (Small employer) | $14.52 | San Jose | $16.20 |
| Hayward (Large employer) | $15.56 | San Mateo | $16.20 |
| Los Altos | $16.40 | Santa Clara | $16.40 |
| Menlo Park | $15.75 | Santa Rosa | $15.85 |
| Mountain View | $17.10 | Sonoma (Small Employer) | $15.00 |
| Novato (Small Employer) | $15.00 | Sonoma (Large 26+) | $16.00 |
| Novato (Large 26-99) | $15.53 | South San Francisco | $15.80 |
| Novato (Very Large 100+) | $15.77 | Sunnyvale | $17.10 |
New minimum wage requirements go into effect on July 1, 2025 in these areas:
| Alameda | $15.75 | Malibu | $15.96 |
| Berkeley | $16.99 | Milpitas | $16.40 |
| Emeryville | $17.68 | Pasadena (All Employers 25 and Non-profits) | $16.11 |
| Fremont (Small employer 25 or fewer) | $16.00 | San Francisco | $16.99 |
| Fremont (Large employer 26 or more) | $16.00 | San Leandro | $15.00 |
| City of Los Angeles | $16.04 | Santa Monica | $15.96 |
| Los Angeles County | $15.96 | Santa Monica (Large Employer 26 or More) | $15.96 |
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