New State & Local Minimum Wage Law Changes – Effective July 1, 2025

As your HR compliance partner, we’re here to keep you informed of important regulatory updates that may impact your organization. Minimum wage compliance update: Effective July 1, 2025, several states have local minimum wage increases in effect. These updates apply to employees working onsite, remotely, or in a hybrid capacity within the affected cities and counties. It’s important to review your compensation practices to ensure compliance with the applicable local wage rates.

New California Minimum Wage Increases

Several California cities and counties are raising their local minimum wage rates.

Local Minimum Wages (Effective July 1, 2025):

• Alameda: $17.46/hour
• Berkeley: $19.18/hour
• Emeryville: $19.90/hour
• Fremont: $17.75/hour
• Los Angeles City: $17.87/hour
• Los Angeles County (Unincorporated): $17.81/hour
• Milpitas: $18.20/hour
• Pasadena: $18.04/hour
• San Francisco: $19.18/hour
• Santa Monica: $17.81/hour

Industry-Specific Minimum Wage Updates in California:

• Los Angeles (hotel and airport workers): $22.50/hour
• Santa Monica (hotel employees and employees of businesses operating on hotel property): $22.50/hour
• West Hollywood (hotel employees): $20.22/hour

Salary Thresholds for Exempt Employees in California:

The state-mandated salary threshold for exempt administrative, executive, and professional employees in California remains $68,640 annually, based on the state minimum wage of $16.50 per hour.

Other State & Local Minimum Wage Changes

Several states and local jurisdictions outside California are also increasing their minimum wages on July 1, 2025.

Statewide Minimum Wage Increases:

• Alaska: $13.00/hour
• District of Columbia: $17.95/hour
  • Tipped Employees: $12.00/hour minimum cash wage. Employers must ensure combined tips and cash wages equal at least $17.95/hour.
• Oregon (varies by region):
  • Non-Urban Counties: $14.05/hour
  • Standard Areas: $15.05/hour
  • Portland Metro: $16.30/hour

Local Minimum Wage Increases:

• Chicago, IL (4 or more employees): $16.60/hour
• Montgomery County, MD:
  • 51 or more employees: $17.65/hour
  • 11 to 50 employees: $16.00/hour
  • 10 or fewer employees: $15.50/hour
• St. Paul, MN:
  • 6 to 100 employees: $15.00/hour
  • 5 or fewer employees: $13.25/hour
• Everett, WA: $18.24/hour
• Renton, WA: $19.90/hour
• Tukwila, WA: $21.10/hour

Exempt Employee Salary Thresholds:

• Alaska: The new minimum salary threshold for exempt employees is $1,040 per week.
• Oregon: Salary thresholds vary regionally, but are below the federal threshold. Most employers should continue to follow the federal minimum of $684 per week, unless solely governed by state law.

What do Employers Need to Do?

1. Review Employee Locations:
   Identify where your employees (including remote and hybrid workers) are located and determine which local or state wage laws apply.
2. Adjust Wages:
   Ensure all employees are paid at or above the applicable minimum wage by July 1, 2025.
3. Confirm Exempt Classifications:
   Verify that exempt employees meet the correct salary thresholds in their respective jurisdictions.
4. Post Required Notices:
   Display updated minimum wage posters at each applicable worksite, as required by law.

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Need Assistance?
Our team is here to help you navigate these updates. For questions about wage adjustments, employee classifications, or posting requirements, please contact your dedicated HR Consultant or email us at hr@hrdelivered.com.

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