Minimum Wage Increases for 2025
As the new year approaches, we want to remind you of the changes in the minimum wage rates.
Statewide Minimum Wage. On January 1, 2025, the state minimum wage rate will increase from $16.00 to $16.50 per hour. There are 39 cities and one county in California that impose higher minimum wages. Contact Fishman, Larsen & Callister or Sierra HR Partners if you have questions about the minimum wage in your municipality.
Minimum Salary for Exempt Employees. Don’t forget that the increase in the state minimum wage will also increase the minimum salary for employees who are exempt as “white collar” employees. To continue the exemption into 2025, employers must pay managers, professionals and administrators two times the minimum wage or $68,640.
Fast Food Minimum Wage. Fast food workers will continue to earn $20.00 per hour. However, this wage may increase later in the year.
Health Care Worker Minimum Wage. The healthcare worker minimum wage went into effect on October 16, 2024. It will not increase until July 1, 2025.
Computer Software Employee Minimum Wage. Computer software employees may be exempt from overtime if they are paid a minimum wage. In 2025 the minimum hourly rate of pay is $56.97. The minimum monthly salary level is $9,646.96. The minimum annual salary exemption level is $118,657.43.
Physicians and Surgeons. Physicians and surgeons paid an hourly rate may be exempt from overtime if they are paid a minimum hourly wage. In 2025 the minimum hourly rate of pay is $103.75.
Minimum wages and exemptions have become much more complex. The failure to pay the appropriate wages or failure to meet the requirements for the exemptions can result in significant liability for unpaid wages and civil penalties. Please reach out to Fishman, Larsen & Callister or Sierra HR Partners if you have questions about minimum wages or whether an employee is exempt from overtime compensation.
Doug Larsen: larsen@flclaw.net
Mike Green: green@flclaw.net
559.256.5000
Brenda Budke: budke@sierrahr.com
Janet Keene: keene@sierrahr.com
Daniel Larsen: larsen@sierrahr.com
559.431.8090
