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By Jasmine Laws
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Many Californian cities will implement new minimum wage rates on July 1 as part of a move to offset the effects of inflation impacting cost of living across the state.
The increases vary between cities, with Santa Monica, Emeryville and Berkeley seeing some of the biggest changes, according to the National Law Review.
Why It Matters
The statewide minimum wage for most California workers increased from $16 per hour to $16.50 per hour this year. Additionally, some 25 cities introduced higher-than-statewide minimum wages in January, while others will now introduce new rates from July.
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Various industries have also seen different increases on minimum wage, such as fast-food workers and certain health care workers.
Those in the tourism industry in Los Angeles may also see a major increase in minimum wage ahead of the 2028 Olympics if the legislation under debate passes.
The change to minimum wage comes along with a number of other laws going into effect in California on July 1. They include bills to crack down on the sale of stolen goods, target hidden cleaning fees enforced by short-term rentals, promote protections for household domestic workers and many more.
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What To Know
Many municipalities will be paying employees a minimum wage above the state's official rate of $16.50.
According to the National Law Review, those in Alameda will receive $17.46, up from $17, an hour as a minimum, while those in Berkeley will receive $19.18, up from $18.67.
Employees in Emeryville will receive $19.90, up from $19.36, while those in Fremont will receive $17.75, up from $17.30.
Los Angeles workers will receive $17.87, up from $17.20, while those in Milpitas will receive $18.20, up from $17.81.
Employees in San Francisco will receive $19.18, up from $18.67, and those in Santa Monica will receive $17.81, up from $17.21.
West Hollywood workers will receive $19.65, up from $19.61, but in certain industries, there are larger increases. For example, hotel workers will see a minimum wage rise to $20.22 an hour, up from $19.61.
In Los Angeles, hotel and airport workers will also get an additional minimum wage increase, which will continue to rise over the next four years.
Industry differences affect other sectors, such as fast-food workers, who are paid a minimum of $20 an hour.
What People Are Saying
Ioana Marinescu, a professor at the University of Pennsylvania School of Social Policy & Practice, told Newsweek: "These changes will increase wages, with likely limited effects on employment. Employment might decrease a bit in the most competitive labor markets, especially if the minimum wage is high relative to prevailing wages. But employment can also increase in places where there is less competition for workers and where the minimum wage hike is moderate relative to prevailing wages. Overall, a small effect on employment seems likely. Minimum wage increases allow low wage workers to keep up with the cost of living, which has recently increased."
Eric French, a professor of industrial relations and labor economics at University of Cambridge, U.K., told Newsweek: "Given the levels of these minimum wage ordinances, I would suspect [the impacts] would be considerable. Not only are those paid below the new minimum wage likely affected, but those paid slightly above the new minimum wage are likely to receive a wage increase as well.
"The federal minimum wage has not increased in a long time. Given that inflation erodes the buying power of the minimum wage, it is natural that many locales are pushing up their wage. The minimum wage in California has been above the federal minimum wage for a long time. This reflects both the often-progressive policies of the state, as well as the high wages in the state relative to wages in the country as a whole."
What Happens Next
Starting July 1, employers will have to ensure they review the changes made in different cities to minimum wage rages and pay their employees accordingly.
Update 6/25/25, 11:36 a.m. ET: This article has been updated with comment from Eric French.
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