Minimum Wage Increases January 1, 2025
With 2025 upon us, employers with employees working in California, Connecticut, Illinois, New Jersey and beyond must prepare for scheduled minimum wage increases. Please note the following new minimum wage, tip credit and overtime rates.
CALIFORNIA
On January 1, 2025, the minimum wage in California will increase to $16.50 per hour for all employers.
Local Differences
Several cities and counties in California have a local minimum wage that is higher than the state minimum wage, and some are slated to increase as of January 1, 2025 including:
· Menlo Park - $17.10 per hour
· Mountain View - $19.20 per hour
· Palo Alto - $18.20
· San Diego - $17.25 per hour
· San Jose - $17.95 per hour
· Santa Clara - $18.20 per hour
· Sunnyvale - $19.00 per hour
· West Hollywood - $19.65 per hour
Other cities and counties will see the minimum wage increases throughout 2025 to yet-to-be-determined rates, including the City of Los Angeles (currently $17.28 per hour), unincorporated areas in Los Angeles County outside the City of Los Angeles (currently $17.27 per hour) and San Francisco (currently $18.67). Additionally, the minimum wage for fast food restaurant employees, those individuals working at a restaurant that is part of a national chain with 60 or more restaurants nationwide where customers order and pay for their items before consuming them either on or off the premises, is currently $20.00 per hour, but this too will be adjusted for inflation on January 1, 2025, and every January 1 thereafter through January 1, 2029.
Please be reminded that hospitality employers in California are not permitted to take a tip credit from the minimum wage for any employee.
In summary, staying ahead of the 2025 minimum wage increase is crucial for California employers and those across the U.S.
Ensure that your payroll systems are up to date, communicate changes transparently with your employees, and stay informed about state-specific regulations.
By proactively addressing these changes, you'll not only comply with the law but also foster a positive and fair work environment for your team.
If you need assistance navigating these changes, feel free to reach out to us.
Contact us if you would like more information.