Important updates, effective July 1, 2025 regarding Minimum Wage increases, Local Ordinances and More!

ByContent Manager
Minimum Wage increases

Attention California Employers,

Please read the following important updates, effective July 1, 2025 regarding Minimum Wage increases, Local Ordinances and More!

* Thank you to Cal Chamber for this wage and hour update.

Not only do California employers have to make sure they’re complying with all California and federal employment laws and posting requirements, they also must keep track of the increasing number of local ordinances in cities and counties where their employees work. And on July 1, 2025, several California jurisdictions will increase their local minimum wage rates, which may require employers to update their required posters and notices — plus Los Angeles County’s new Fair Workweek ordinance begins. Here’s a few July 1, 2025 updates for employers.

Effective July 1, 2025, these localities will increase their minimum wage to:

  • Alameda: $17.46 per hour;
  • Berkeley: $19.18 per hour;
  • Emeryville: $19.90 per hour;
  • Fremont: $17.75 per hour;
  • Los Angeles City: $17.87 per hour;
  • Los Angeles County (unincorporated areas): $17.81per hour;
  • Milpitas: $18.20 per hour;
  • Pasadena: $18.04 per hour;
  • San Francisco: $19.18 per hour; and
  • Santa Monica: $17.81 per hour.
  • Although Malibu usually increases their local minimum wage on July 1, the Malibu City Council approved a one-year suspension of their scheduled minimum wage increase so Malibu’s local minimum wage will remain $17.27 per hour.  

Effective July 1, 2025, the following localities have industry-specific minimum wage increases:

  • Los Angeles City: $22.50 per hour for hotel and airport employees;
  • Santa Monica: $22.50 per hour for hotel employees and employees of businesses operating on hotel property; and
  • West Hollywood: $20.22 per hour for hotel employees.
  • And California’s health care worker minimum wage will also increase for certain covered health care facilities on July 1.

Remember, employers should confirm where their employees are working (including remote employees) to determine if any minimum wage ordinances apply — as employees who travel and work in multiple cities and counties will need to be paid the appropriate minimum wage (and updated paid sick rates – both for part time or full time) based on their locations. These eligibility rules will vary based on different locations.

 Additionally, Los Angeles County’s New Fair Workweek ordinance will go into effect on July 1, 2025, which creates new responsibilities for covered employers and protections for covered employees. These include but are not limited to:

  • Advanced notice of work schedules and schedule changes.
  • “Predictability pay” for changes to work schedules.
  • Good faith estimate for new hires on their work schedules.
  • Notice, posting and recordkeeping.

Many local ordinances contain notice and posting requirements, including Los Angeles County’s Fair Workweek ordinance.

Los Angeles County’s New Fair Workweek Ordinance

Please check to see if your city or county has any required posters or required updates for July 1, 2025.

Plus, the California Rights of Victims of Domestic Violence, Sexual Assault and Stalking pamphlets will have mandatory updates starting July 1, 2025. California employers must give this pamphlet to all new employees at the time of hire and to any current employee who requests it.

On May 27, 2025, the Los Angeles City Council amended their Living Wage Ordinance (LWO) and Hotel Worker Minimum Wage Ordinance (HWMO) to increase hotel and airport worker minimum wages starting on July 1, 2025, as well as implemented a health benefit requirement for covered hotel workers and a new Hotel Worker Training Ordinance. These changes will significantly impact hotel and airport employers operating within the city of Los Angeles.

New Minimum Wage Rates

Both hotel and airport employers will see required hourly minimum wages rise over the next four years as follows:

  • $22.50 per hour on July 1, 2025.
  • $25.00 per hour on July 1, 2026.
  • $27.50 per hour on July 1, 2027.
  • $30.00 per hour on July 1, 2028.
  • Starting July 1, 2029, adjusted based on the Consumer Price Index (CPI).

For hotel employers, these wage increases apply to properties with 60 or more guest rooms, unless overridden by a collective bargaining agreement that explicitly waives these provisions.

Enhanced Health Benefits

Additionally, starting July 1, 2026, covered hotel employers who don’t offer health benefits must add an additional amount to the required hourly wages listed above. That additional amount must match the health benefit rate already required for employers servicing the Los Angeles International Airport (LAX).

For airport employers, the required health benefit payment starts sooner — on July 1, 2025 — at $7.65/hour with annual increases starting in 2026 tied to the California Department of Managed Healthcare’s Large Group Aggregate Rates.

Mandatory Training for Hotel Workers

Finally, beginning December 1, 2025, new training requirements for hotel workers will take effect. Covered employees must receive at least six hours of live, interactive “Public Housekeeping Training” that covers:

  • Hotel worker rights and employer responsibilities;
  • How to identify and respond to suspected human trafficking, domestic violence or threatening behavior;
  • Cleaning techniques that help prevent the spread of disease;
  • How to detect and avoid insect and vermin infestations; and
  • How to recognize and respond to other potentially criminal activity.

If you would like additional information pertaining to these updates, please contact your CA/Nationwide HR Services dedicated HR consultant or call our offices at 858-228-5535 or email us at info@cahrservices.com.