California’s Minimum Wage Will Increase Again in 2025
California will see another increase to its minimum wage on Jan. 1, 2025. On this date, the state minimum wage will increase from $16.00 per hour to $16.50 per hour. This increase applies to all employers, regardless of size. The adjustment is based on the consumer price index (CPI), which saw a 3.18% increase over the past year.
Additionally, the minimum salary for full-time exempt employees will increase from $66,560 per year to $68,640 per year on Jan. 1, 2025.
However, employers should be aware that numerous cities and industries across the state have separate minimum wages, which are typically higher than the state minimum wage.
In addition, California voters will decide on Proposition 32, a ballot initiative to raise the state’s minimum wage, in November. If passed, the minimum wage would stairstep increase to $18 per hour for all employers by 2026. The initiative also includes provisions for annual adjustments tied to the CPI to account for inflation.
Kaitlyn L. Lavaroni is an attorney with Jackson Lewis in Sacramento, Calif. © 2024 Jackson Lewis. All rights reserved. Reposted with permission.
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