California’s statewide minimum wage is currently $16.50 per hour as of January 1, 2025. However, several local jurisdictions have set higher rates effective July 1, 2025. Restaurants operating within these areas need to ensure they are compliant with the updated wage requirements. Below is a summary of the localities and their new hourly minimum wage rates effective July 1, 2025:
Alameda (City): $17.46
Berkeley: $19.18
Emeryville: $19.90
Los Angeles (City): $17.87
Los Angeles (County): $17.81
Malibu: $17.27
Milpitas: $18.20
Pasadena: $18.04
San Francisco: $19.18
Santa Monica: $17.81
Additionally, the fast-food sector has specific requirements. Since April 1, 2024, fast-food restaurants in California must pay at least $20 per hour. A fast-food restaurant is defined as a limited-service restaurant that:
- Offers limited or no table service, where customers order and pay before consuming their food.
- Is part of a restaurant chain with at least 60 locations nationwide.
- Primarily sells food and beverages for immediate consumption.
Employers must comply with these regulations to avoid penalties. Violations of California’s minimum wage laws can result in fines of $100 per underpaid employee for each pay period on a first offense and increase to $250 per underpaid employee for subsequent violations.
For additional information and guidance on compliance, restaurants can consult the California Department of Industrial Relations FAQ on minimum wage or reach out directly to CRMBC for assistance.
Kaya Stanley is an attorney, published author, business owner, and highly sought-after strategic turnaround expert. Ms. Stanley serves as CEO and Chairman of the Board for CRMBC, the largest restaurant workers’ compensation self-insured group in California, and she is the Licensee for TEDxReno, an independently organized TEDx Event.
Throughout her 22 years of practicing law, Ms. Stanley has served as outside counsel for Wal-Mart and Home Depot. She was voted one of the country’s “Top 25 OZ Attorneys” by Opportunity Zone Magazine and published a best-selling book called “The Employer’s Guide to Obamacare.” Before that, she earned her master’s degree in social work and public policy, after which she worked with at-risk girls in Detroit and lobbied for women and families.
