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Beginning on July 1, 2025, employers in many states and localities, including California, Illinois, and Washington D.C. must prepare for scheduled minimum wage increases. Please note the following new minimum wage, tip credit and overtime rates.
CALIFORNIA
California Cities/Counties with July 1, 2025, Minimum Wage Increases
On July 1, 2025, the minimum wage in the following California counties will increase as follows:
- Berkeley – Increase to $19.18 per hour
- City of Alameda – Increase to $17.46 per hour
- City of Los Angeles – Increase to $17.87 per hour
- Emeryville – Increase to $19.90 per hour
- Fremont – Increase to $17.75 per hour
- Los Angeles County (unincorporated areas) – Increase to $17.81 per hour
- Milpitas – Increase to $18.20 per hour
- Pasadena – Increase to $18.04 per hour
- San Francisco – Increase to $19.18 per hour
- Santa Monica – Increase to $17.81 per hour
Please be reminded that hospitality employers in California are not permitted to take a tip credit from the minimum wage for any employee.
Industry-Specific Increases
- West Hollywood, California – Hotel workers will see an increase to $20.22 per hour effective July 1, 2025. Further, for employees of hotels and businesses operating on hotel property, the minimum wage rate will increase to $21.01 per hour.
Important Note: The minimum wage increase for hotel employees is subject to change. As of May 12, 2025, the City of Los Angeles City Council voted to approve a proposal to require a $22.50 minimum wage for hotel workers effective July 1, 2025. This is subject to a final vote by the City Council and action by the mayor. If this ordinance becomes effective, the City of Santa Monica’s hotel workers’ living wage will also increase to $22.50 per hour effective July 1, 2025, or the soonest date thereafter that the ordinance becomes effective.
ILLINOIS
State Minimum Wage
The minimum wage in Illinois increased to $15.00 per hour on January 1, 2025.
Tipped Employees
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