Navigating California’s complex patchwork of minimum wage laws in 2025 requires understanding state, local, and industry-specific requirements that directly impact Los Angeles workers’ paychecks.
Table of Contents
- California’s State Minimum Wage for 2025
- Los Angeles City and County Wage Rates
- Industry-Specific Minimum Wages
- Impact on Exempt Employee Salaries
- Common Wage Violations to Watch For
- Your Rights Under California Wage Laws
- How to Recover Unpaid Wages
- How Law Offices of Todd M. Friedman, P.C. Can Help
California’s State Minimum Wage for 2025
Effective 2025, the new California state minimum wage will increase to $16.50 an hour (up from $16 an hour). This increase applies to all employers throughout California, regardless of company size. The increase was implemented through the consumer price index (CPI) adjustment mechanism after voters narrowly rejected Proposition 32, which would have raised the minimum wage even higher.
Key Points About the State Minimum Wage:
Universal Application: Unlike previous years, the $16.50 rate applies to all employers, whether they have 25 or fewer employees or 26 or more employees.
CPI Adjustment: The increase reflects cost-of-living adjustments based on the consumer price index, a mechanism designed to help wages keep pace with inflation.
Baseline Rate: This represents the minimum that any employer in California must pay, though many jurisdictions have higher local requirements.
Los Angeles City and County Wage Rates
Los Angeles has its own minimum wage requirements that exceed the state rate. Understanding which rate applies to you depends on your specific work location.
City of Los Angeles: $17.87/hour (increased from $17.28/hour) effective July 1, 2025.
Los Angeles County (Unincorporated Areas): $17.81/hour effective July 1, 2025.
Other Local Rates in Southern California:
- Pasadena: $18.04/hour (increased from $17.50/hour)
- Santa Monica: $17.81/hour (increased from $17.27/hour)
- West Hollywood: $19.65/hour for non-hotel employees; $20.22/hour for hotel workers (through December 31, 2025)
Important Considerations:
Geographic Specificity: Your applicable minimum wage depends on where you physically perform work, not where your employer is headquartered.
Higher Rate Applies: When multiple wage laws could apply, you’re entitled to the highest applicable rate.
Regular Updates: Local minimum wages often increase on July 1st each year, so rates may change mid-year.
Industry-Specific Minimum Wages
California has established special minimum wage rates for certain industries, recognizing the unique challenges workers in these sectors face.
Healthcare Workers
Certain healthcare workers will see their minimum wage increase to $24.00 per hour effective July 1, 2025. This rate applies to specific healthcare facilities and worker categories as defined by state law.
Eligibility Criteria:
- Must work in covered healthcare facilities
- Applies to specific job classifications
- Phased implementation depending on facility size and type
Fast Food Workers
Certain fast-food workers must be paid $20 per hour based on the state law that took effect last year. This rate applies to employees of fast-food chains meeting specific criteria.
Coverage Requirements:
- Restaurant must be part of a chain with 60 or more establishments nationally
- Specific exemptions apply (such as for restaurants located in airports or hotels)
- The Fast Food Council has authority to raise this rate
Construction Industry Workers
Union construction workers covered by collective bargaining agreements may have different rates, typically requiring wages at least 30% higher than state minimum wage.
Impact on Exempt Employee Salaries
The minimum wage increase directly affects salary requirements for exempt employees—those not entitled to overtime pay.
This fifty-cent increase also moves the minimum salary test for the primary overtime exemptions (administrative, executive, professional) to $68,640 annually or $5,720 monthly.
Exempt Employee Requirements:
Salary Basis: Must be paid a predetermined fixed salary not subject to reduction based on quality or quantity of work.
Salary Level: Must earn at least $68,640 annually ($5,720 monthly, $1,320 weekly) to qualify for exemption.
Duties Test: Must primarily perform executive, administrative, or professional duties as defined by California law.
All Three Required: Employees must meet all three tests. Failure to meet any one test means the employee must be paid overtime.
Important Notes for Employers and Employees:
If you’re classified as exempt but earn less than $68,640 annually, you should be reclassified as non-exempt and entitled to overtime pay for hours worked over 8 per day or 40 per week.
Part-time exempt employees must still meet the full salary threshold—there’s no pro-rated exemption.
Common Wage Violations to Watch For
Despite clear wage laws, violations remain common. Los Angeles workers should be alert to:
Paying Below Minimum Wage:
- Paying the state rate when a higher local rate applies
- Failing to update wages when minimum wage increases
- Misclassifying location to apply a lower rate
Improper Deductions:
- Deducting for uniforms that bring pay below minimum wage
- Improper meal or lodging deductions
- Charging employees for business expenses
Tip Credit Misuse:
- California doesn’t allow tip credits—tips are in addition to full minimum wage
- Requiring tip sharing with managers or supervisors
- Taking portions of employees’ tips
Misclassification Issues:
- Classifying employees as exempt when they don’t meet all requirements
- Independent contractor misclassification to avoid minimum wage obligations
- Treating full-time employees as part-time to avoid benefits
Off-the-Clock Work:
- Requiring work before clocking in or after clocking out
- Unpaid prep work or closing duties
- Unpaid mandatory meetings or training
Your Rights Under California Wage Laws
California provides strong protections for workers’ wage rights:
Right to Full Minimum Wage: You’re entitled to the highest applicable minimum wage for every hour worked.
Accurate Pay Stubs: Employers must provide itemized wage statements showing hours worked, rates paid, and deductions taken.
Timely Payment: Wages must be paid at least twice monthly, with strict deadlines for final paychecks upon termination.
Overtime Protection: Non-exempt employees must receive 1.5x regular rate for hours over 8 per day or 40 per week, and 2x regular rate for hours over 12 per day.
Meal and Rest Breaks: Non-exempt employees are entitled to meal periods and rest breaks, with premium pay if breaks aren’t provided.
Protection from Retaliation: It’s illegal for employers to retaliate against employees who assert their wage rights.
How to Recover Unpaid Wages
If you’re not receiving proper minimum wage or believe you’re owed unpaid wages:
Document Your Situation:
- Keep records of hours worked
- Save pay stubs and time records
- Note your work location(s)
- Calculate what you believe you’re owed
Report to Your Employer:
- Notify your employer in writing about wage deficiencies
- Request correction and payment of amounts owed
- Keep copies of all communications
File a Wage Claim:
- Can file with California Labor Commissioner
- No cost to file
- Labor Commissioner investigates and can order payment
Consider Legal Action:
- Private lawsuit may be appropriate for significant violations
- Can recover unpaid wages plus penalties
- May be entitled to attorney fees if successful
Act Quickly:
- Three-year statute of limitations for most wage claims
- Some claims have shorter deadlines
- Evidence is easier to preserve when claims are timely filed
How Law Offices of Todd M. Friedman, P.C. Can Help
At Law Offices of Todd M. Friedman, P.C., we have extensive experience helping Los Angeles workers recover unpaid wages. California’s complex patchwork of minimum wage laws can be confusing, but we understand how to navigate these requirements and ensure you receive every dollar you’ve earned.
Our Wage and Hour Services:
Comprehensive Wage Analysis: We review your pay records, work location, industry, and job duties to determine all applicable wage rates and identify violations.
Calculation of Damages: We accurately calculate unpaid wages, including:
- Minimum wage shortfalls
- Unpaid overtime
- Meal and rest break premiums
- Waiting time penalties for late final paychecks
- Pay stub violation penalties
Multiple Legal Pathways: We evaluate whether to:
- File a Labor Commissioner claim
- Pursue a civil lawsuit
- Join or initiate a class action if violations affect multiple employees
Aggressive Representation: We fight to recover all wages owed plus applicable penalties and attorney fees.
Protection from Retaliation: We take immediate action if employers retaliate against clients who assert wage rights.
No Recovery, No Fee: We handle wage claims on a contingency basis—you pay no attorney fees unless we recover money for you.
California’s minimum wage laws are designed to ensure fair compensation for your work. Whether you’re dealing with complex local wage rates, industry-specific minimums, or misclassification issues, Law Offices of Todd M. Friedman, P.C. can help you understand your rights and recover what you’re owed.
If you believe you’re not receiving the correct minimum wage or are owed unpaid wages, contact us today for a free consultation. We serve clients throughout Los Angeles, Southern California, and have offices in Ohio, Illinois, and Pennsylvania.
Don’t let wage violations go unchallenged. Contact Law Offices of Todd M. Friedman, P.C. today to recover your unpaid wages.
