Minimum Wage Increases Coming Soon Across the Nation – Especially in California

Employers in many states and localities will see an increase in minimum wages starting July 1, 2025.

Many Changes Coming in California

As it often does, California leads the way with a patchwork of minimum wage increases across localities and industries scheduled for this summer.

Los Angeles Prepares for the Olympics with Proposed Wage Increases

Employers, workers, and advocates have been closely following headlines regarding Los Angeles’s so-called “Olympic Wage” initiative. The legislation in question, Ordinance 188610, requires higher minimum wages, minimum health benefits, and training standards for employees of large hotels and employers servicing the Los Angeles International Airport (“LAX”). This is not the first time these industries have been singled out; however, this proposal specifically contemplates the upcoming 2026 World Cup and 2028 Olympics.

Los Angeles’s City Council adopted the ordinance on May 23, Mayor Karen Bass signed it into law on May 27, and it was published on May 29. Opponents quickly submitted a petition for referendum, seeking to overturn the ordinance before it takes effect. In accordance with local rules, though the ordinance has been signed into law, if nearly 93,000 signatures are collected within 30 days after publication of the ordinance, it is suspended until it can be placed on a ballot for a general election in June 2026. This leaves the proposed minimum wage increases, and related measures, in flux through at least June 30, 2025.

If the ordinance is not overturned and the new provisions take effect, beginning on July 1, 2025, the minimum wage will increase to $22.50 for workers in hotels with at least 60 guest rooms and employees of employers servicing LAX. If employers servicing LAX do not provide health benefits to an employee, the ordinance stipulates a minimum wage of $30.15 for that employee.

If the referendum passes, and the ordinance does not take effect, the minimum wage for hotel workers will raised slightly to $21.01. Airport workers will be subject to existing minimum wage laws.

The City of Santa Monica matches the hourly wage for hotel workers set by Los Angeles. Santa Monica has already announced that it will apply the increased minimum wage for hotel workers. This means that the outcome of the referendum will impact hotel employers in both Los Angeles and Santa Monica.

We are keeping a close eye on these developments. Employers in the hospitality and tourism industries should be aware of the provisions in the ordinance and prepare for changes, if any, required by July 1, 2025. 

First Scheduled Minimum Wage Increase for CA Health Care Workers

Following several amendments, on October 16, 2024, a new minimum wage scale for health care workers went into effect in California. The first scheduled increases start July 1, 2025. There are two tiers of increases effective July 1 depending on the facility.

Tier 1: minimum wage increases from $23 to $24

• Large health systems and dialysis clinics
• “Covered Health Care Facilities” run by large counties

Tier 2: minimum wage increases from $18 to $18.63 (a 3.5% increase)

• “Safety Net Hospitals,” meaning hospitals with high populations of Medicare/Medicaid patients, rural health care facilities, and health care facilities owned, affiliated or operated by a county with a population of less than 250,000
• “Covered Health Care Facilities” run by small counties

Employers should refer to the state’s Labor Commissioner FAQs or our previous post (published prior to amendments that postponed implementation) breaking down the covered facilities and employers for more information.

California Minimum Wage Rate Hikes by Industry

In addition to those detailed above, employers in hospitality-related industries will see increases in the minimum wage in several other California localities. All industry-specific minimum wage increases are detailed below. The minimum wage for fast food workers, which, at $20, is higher than the state’s general minimum wage rate, will not increase on July 1. Employers should keep in mind that these industry-specific minimum wage rates preempt the relevant jurisdiction’s general minimum wage rate.

The following chart summarizes coming industry-specific wage hikes:

Industry	Current Minimum Wage	Increased Minimum Wage Effective July 1, 2025
Healthcare (Statewide)	$23 (large health systems and those run by large counties) $18 (“safety net” facilities and those run by small counties) *	$24 (large health systems and those run by large counties) $18.63 (“safety net” facilities and those run by small counties) *
Hotels with 60 or more Guest Rooms (City of Los Angeles & City of Santa Monica)	$20.32	$22.50 or $21.01 pending resolution of referendum, see above
Employers Servicing  LAX (City of Los Angeles)	$19.28 if the employer provides health benefits or $25.23 if the employer does not provide health benefits	$22.50 if the employer provides health benefits or $30.15 if the employer does not provide health benefits pending resolution of referendum, see above
Hotels (City of West Hollywood)	$19.61	$20.22
Hotels (City of Long Beach)	$23.00	$25.00
Airport & Convention Center (City of Long Beach)	$17.97	$18.58

* other categories of facilities excluded from July 1, 2025, increases

California General Minimum Wage Rate Hikes by Jurisdiction

Several localities in California will also increase their general minimum wage on July 1, 2025. These cities and counties enforce a minimum wage above the state’s minimum of $16.50. Note that the City of Malibu, one of the localities with scheduled increases effective each July 1, has suspended its planned increase this year in light of the Palisades Fire. Employers should keep in mind that, where applicable, the industry-specific minimum wage rates detailed above preempt each jurisdiction’s general minimum wage rate.

Jurisdiction	Current Minimum Wage	Increased Minimum Wage Effective July 1, 2025
City of Alameda	$17.00	$17.46
City of Berkeley	$18.67	$19.18
City of Emeryville	$19.36	$19.90
City of Fremont	$17.30	$17.75
City of Los Angeles	$17.28	$17.87
Unincorporated Los Angeles County	$17.27	$17.81
City of Milpitas	$17.70	$18.20
City of Pasadena	$17.50	$18.04
City & County of San Francisco	$18.67 $16.51 (government supported employees)	$19.18 $16.97 (government supported employees)
City of Santa Monica	$17.27	$17.81

 

Minimum Wage Increases Outside of California

Though California leads the way in mid-year minimum wage rate hikes, employers in several states and localities will also see increases soon. The following chart summarizes the coming changes, which are effective July 1, 2025, unless otherwise noted. Note that the chart only lists rates that are changing imminently.

Jurisdiction	Current Minimum Wage	Increased Minimum Wage
Alaska	$11.91	$13.00
District of Columbia	$17.50 $10.00 for tipped workers (total hourly rate must meet full minimum wage)	$17.95 $12.00 for tipped workers (total hourly rate must meet full minimum wage)
Florida	$13.00	$14.00 * effective Sept. 30, 2025
Chicago, Illinois (employers with more than four employees)	$16.20 $11.02 for tipped workers (total hourly rate must meet full minimum wage) rates for youth workers vary	$16.60 $12.62 for tipped workers (total hourly rate must meet full minimum wage) rates for youth workers vary
Montgomery County, Maryland	$17.15 (employers with 51 or more employees) $15.50 (employers with 11 to 50 employees) $15.00 (employers with 10 or fewer employees)	$17.65 (employers with 51+ employees) $16.00 (employers with 11 to 50 employees) $15.50 (employers with 10 or fewer employees)
St. Paul, Minnesota	$14.00 (employers with six to 100 employees) $12.25 (employers with five or fewer employees) *	$15.00 (employers with six to 100 employees) $13.25 (employers with five or fewer employees) *
Oregon	$14.70 (standard) $15.95 (employers within the Portland metropolitan boundary) $13.70 (employers within a nonurban county)	$15.05 (standard) $16.30 (employers within the Portland metropolitan boundary) $14.05 (employers within a nonurban county)
Burien, Washington[1]	$16.66, the Washington State Minimum Wage (all employers with 21 to 499 full-time equivalent employees) *	$20.16 (all employers with 21 to 499 full-time equivalent employees) *
Everett, Washington	$16.66, the Washington State Minimum Wage	$20.24 (“large employers” of  500 + employees worldwide) $18.24 (“covered employers” with 15+ employees worldwide or $2 million+ in annual gross revenue)
Renton, Washington	$18.90 (employers with 15 to 500 employees) *	$19.90 (“mid-sized employers” of 15 to 500 employees or $2 million+ in local annual gross revenue) *
Tukwila, Washington	$20.10 (employers of 15-500 employees worldwide or over $2 million of annual gross revenue in Tukwila) *	$21.10 (“mid-sized employers” of 15-500 employees worldwide or $2 million+ in local annual gross revenue) *

* Other categories of employers/employees excluded from July 1, 2025, increases

Employers and payroll processors should be aware of these changes and prepare for minimum wage adjustments taking effect on July 1 or soon thereafter. To stay up to date with the latest changes to state and local wage laws, download The Wage & Hour Guide for Employers app.

Maureen Maher-Patenaude, a Summer Associate (not admitted to practice) in Epstein Becker Green’s New York office, contributed to the preparation of this piece.

ENDNOTES

[1] On February 25, 2025, the City of Burien filed a complaint seeking clarification of a voter-approved initiative regarding the city’s minimum wage. The case is pending in King County Superior Court. The scheduled minimum wage increase for “Level 2 employees” on July 1, 2025, is unaffected by the suit. Updates may be found on the city’s website.