New Statewide Minimum Wage

The statewide minimum wage for most industries is now $17.00 per hour. This base rate applies unless local jurisdictions have higher requirements, which many do.

Local Wage Ordinances: Know Your Location

California’s local wage laws often exceed the state minimum. A few notable updates include:

• San Francisco: $19.18/hour
  
  
• Los Angeles City: $17.87/hour
  
  
• Santa Monica Hotels: $21.01/hour
  
  

Employers must apply the highest applicable rate based on where work is physically performed, not just where the business is headquartered.

Remote and Hybrid Worker Considerations

For remote or hybrid workers, the location where the work is carried out determines which local wage must be applied. If an employee works remotely from a city with a higher minimum wage, that rate must be honored.

This makes it essential to document work locations clearly, especially for hybrid roles.

Industry-Specific Minimums

Certain sectors, especially healthcare, face additional rules. Some healthcare facilities must now pay $23 to $24 per hour, depending on their classification. These adjustments reflect broader workforce protection efforts in high-demand, high-risk sectors.

What Employers Should Do Now

To stay compliant:

• Review your payroll settings to ensure proper wage calculations
  
  
• Update employment contracts and offer letters to reflect new rates
  
  
• Communicate changes to your staff clearly and in writing
  
  
• Revisit your budget and pricing models if wage increases impact service costs
  
  

Build Wage Reviews Into Your HR Calendar

Wage law changes are rarely one-time events. Regularly reviewing wage ordinances and syncing with an HR advisor can help you stay ahead of compliance gaps.

Not sure how these changes affect your business?
LFV HR Consulting can help you assess your current wage practices and develop a compliance plan tailored to your local regulations. Schedule a consultation today.