The minimum wage in California, effective January 1, 2025, will increase from $16.00 per hour to $16.50 per hour. This increase applies to all employers, regardless of size. Some cities and counties have higher minimum wages than the state’s rate such as Los Angeles ($17.28 / hour), San Francisco ($18.67 / hour), San Diego ($16.85 / hour) and Berkeley ($18.67 / hour).
Minimum wage laws do not apply to independent contractors and other self-employed people.
California voters will decide on Proposition 32, a ballot initiative to raise the state’s minimum wage, in November 2024 which if passed could increase the State minimum wage with provisions for annual adjustments tied to the Consumer Price Index (CPI) to account for inflation. As proposed:
- Higher Minimum Wage in 2025. In 2025, California would have different minimum wages for employers of different sizes. Employers with 26 or more employees would have a minimum wage of $18 per hour. Employers with 25 or fewer employees would have a minimum wage of $17 per hour. Without Proposition 32, the minimum wage for all employees would be $16.50 per hour.
- Minimum Wage $18 Per Hour in 2026. In 2026, the minimum wage would be $18 per hour for all employees. Without Proposition 32, it likely would be about $17 per hour.
- Inflation Adjustments Paused Until 2027. The minimum wage would be adjusted for inflation every year starting in 2027.
Most employees in California must be paid at least the minimum wage per hour, with some exceptions such as the minimum wage for “fast food restaurant employees” which increased to $20.00 per hour effective April 1, 2024.