July 1 is just around the corner, and with it comes a series of local minimum wage increases across Southern California. For employers operating in multiple jurisdictions, staying compliant can be complex—but it’s essential to avoid costly penalties and maintain employee trust.

Below is a breakdown of the new rates, followed by a practical compliance checklist tailored for California employers. While this is usually a Friday’s Five article, we’re stretching a bit into seven key steps to keep you covered.

Minimum Wage Increases in Southern California (Effective July 1, 2025)

  • Los Angeles County (Unincorporated Areas): $17.81/hour
  • City of Los Angeles: $17.87/hour (increased from $17.28/hour)
  • Pasadena: $18.04/hour (increased from $17.50/hour)
  • Santa Monica: $17.81/hour (increased from $17.27/hour)
  • West Hollywood (Hotel Workers): $20.22/hour (note: non-hotel employees must be paid $19.65/hour and this rate will be in effect until December 31, 2025)
  • City of San Diego: $17.25/hour has been in effect since January 1, 2025

Note: Other jurisdictions throughout California also have their own minimum wage ordinances. Employers should verify all applicable rates based on their workforce’s location.

7-Step Compliance Checklist for Employers

1. Identify All Applicable Jurisdictions

Determine where your employees are performing work. Local minimum wage ordinances are typically based on work location, not where the business is headquartered.
Tip: For employees who work across multiple cities, you must pay the highest applicable minimum wage.

2. Update “Notice to Employee” Forms (Labor Code 2810.5)

Employers are required to provide non-exempt employees with written notice of wage rates. Update these notices to reflect the new local minimum wage amounts.

3. Review and Adjust Pay Stubs

Pay stubs must accurately reflect current hourly rates. This includes updates to wage lines for hourly workers and any overtime calculations.

4. Post Updated Workplace Notices

Most cities require employers to post official local minimum wage notices in a conspicuous place at each worksite. Make sure your postings are current and legible.

5. Audit Multi-Jurisdiction Work

For employees working in more than one city or county with different minimum wages, ensure your payroll systems and HR teams are calculating wages based on the higher rate.

6. Review Industry Applicable Rates

Certain sectors, such as fast food, healthcare, and hotel workers, have distinct minimum wage requirements. For instance, fast-food workers are entitled to a minimum wage of $20.00 per hour under AB1228, which may be increased soon in 2025. Also, certain healthcare workers will see their minimum wage increase to $24.00 per hour effective July 1, 2025. Click here to see the recently updated DIR’s FAQs for Health Care Workers.  Also in the news is LA City’s recent bill to increase hotel and airport worker’s minimum wage to $30 per hour by 2028.  However, there has been a referendum petition filed against this new bill. 

7. Communicate with Your Workforce

Transparency is key. Let your employees know when changes will take effect, why they’re occurring, and what adjustments they can expect to see.

Final Thoughts

California’s patchwork of local wage laws continues to grow more complex. By reviewing your policies and procedures now, you can avoid last-minute headaches and ensure you’re on solid legal footing. Make sure your HR, payroll, and management teams are aligned and up to date.

Need help auditing your current wage practices or navigating overlapping jurisdictions? Reach out to legal counsel with expertise in California employment law for tailored guidance.