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:

• Los Angeles County – Increase to $17.81 per hour
• San Francisco – Increase to $19.81 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.

ILLINOIS[1]

State Minimum Wage

The minimum wage in Illinois increased to $15.00 per hour on January 1, 2025. 

Tipped Employees

WASHINGTON, D.C.

On July 1, 2025, Washington, D.C.’s minimum wage will increase from $17.50 per hour to $17.95 per hour. 

As a reminder, for hospitality employers who take a tip credit from tipped employees’ wages, the employee should be notified in writing of the new wage rate and tip credit.

[1] The minimum wage in Chicago, Illinois and Cook County Illinois will also increase on July 1, 2025. However, as of the date of publication, the new rates have yet to be determined.

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If you have questions or would like additional information, please contact our Labor & Employment attorneys or the primary EGS attorney with whom you work.