It’s that time of year again… the July 1 increase to minimum wage in many cities and counties.
LOS ANGELES CITY LOCAL MINIMUM WAGE INCREASE
Effective July 1, 2025 the Los Angeles City minimum wage rate will increase from the current rate of $17.28 to $17.87.
The City of Los Angeles Minimum Wage Ordinance provides the following:
Employer means any person, as defined in the California Labor Code including a corporate officer or executive, who directly or indirectly or through an agent or any other person, including through the services of a temporary services or staffing agency or similar entity, employs or exercises control over the wages, hours or working conditions of any Employee.
Employee means any individual who in any particular week performs at least two (2) hours of work within the geographic boundaries of the City of Los Angeles for any Employer and is entitled to earn the California minimum wage. This Employee is covered by the Minimum Wage Ordinance (MWO) regardless of immigration status or employment status whether the Employee is full-time, part-time, temporary, etc.
Employer Requirements
- The Employer must pay hourly minimum wage and provide paid sick leave for hours for any employee who works at least two hours in a work week within the geographic boundaries of the City.
- Employer must post the Office of Wage Standards Wage and Sick Time Notice in a conspicuous place at any workplace or job site in English and any other language(s) spoken by at least five percent (5%) of the Employees at the workplace or job site.
- Employer must keep payroll records for four (4) years.
- Employer must provide employees with the Employer’s name, address, and telephone number in writing at the time of hire.
- Retaliation against any Employee exercising rights under the Minimum Wage and Office of Wage Standards Ordinances is prohibited.
Remedies for Violation
An aggrieved Employee may file a civil action in court. Some of the remedies an employee seek to recover include, but are not limited to, the following:
- Payment of wages unlawfully withheld;
- Payment of Sick Time Benefits unlawfully withheld; and/or
- An additional penalty of up to $120 to the Employee and up to $50 to the City for each day that either violation occurred or continued.
- In cases of retaliation, the Employee may be entitled to reinstatement and trebled the above.
Employers can find more information about the LA City minimum wage increase here.
LOS ANGELES COUNTY MINIMUM WAGE INCREASE
The County of Los Angeles maintains its own minimum wage separate from the City of Los Angeles. The County announced that as of July 1, 2025 the minimum wage in unincorporated L.A. County will be $17.81 per hour.
As with the City of Los Angeles requirement, the Los Angeles County ordinance applies to employees who perform at least two hours of work in a particular week within unincorporated areas of Los Angeles County. If the employee performs work in the unincorporated areas of L.A. County, even if the business or non-profit is not located in an unincorporated area of L.A. County, employers must comply and pay at least the County’s minimum wage.
Employers can find more information and updated workplace posters for LA County here.
OTHER LOCAL MINIMUM WAGE RATES TO CHANGE
Many local jurisdictions also have their own minimum wage rates, most of which will increase as of July 1, 2025.
Click here to see a list of the various wages.
EXEMPT SALARY THRESHOLD DOES NOT CHANGE
This increase in the local minimum wage ordinances does not impact the minimum salary threshold for exempt employees, which is based on the California minimum wage. Currently, based on California’s minimum wage, an employee must earn at least $68,640 per year (an increase from $64,480 per year in 2023.) This is calculated as twice the state’s minimum wage, which is $16.50 per hour, multiplied by 2080 hours, the number of hours in a standard work year. The higher local minimum wages do not affect this threshold.
STEPS TO TAKE NOW 
- Review the geographic area where your employees are performing work to ensure that you are paying the proper minimum wage for that work location. If an employee works in different jurisdictions, then their hourly wage must be the highest of the applicable minimum wage rates.
- Provide all non-exempt employees with an updated Notice to Employee (L.C. section 2810.5) form if their hourly rate of pay increases. The Notice must be provided within 7 calendar days of any change in rate, UNLESS one of the following applies: (a) All changes are reflected on a timely wage statement provided in accordance with Labor Code section 226, or (b) Notice of all changes is provided in another writing require by law within seven days of the changes.
- Ensure the pay stubs are updated to accurately reflect the updated wage.
This Newsletter is intended as a brief summary of employment law. While every effort has been made to ensure the accuracy of the information contained herein, it is not intended to serve as “legal advice,” or to establish an attorney-client relationship. If additional information is needed on any of the topics contained herein, please contact our office. All rights reserved. ©2025.