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

Additional State Minimum Wage Increases Effective 7/1/25

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.

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.

Author: Rebecca Ames, HR Consultant at SDHR Consulting