Both state and federal laws impose rules regarding the treatment of employees. One of the most important protections is the right to a minimum hourly wage. Workers paid on an hourly basis should receive wages that are high enough to afford them a basic standard of living.
The federal minimum wage has remained relatively stagnant for years, but California as a state has been relatively assertive about adjusting minimum wage. The state reviews and adjusts minimum wage annually. Some municipalities have their own rules regarding minimum wage, but the state itself also establishes a baseline wage that employers must provide.
There were attempts to increase the mandatory minimum wage during the 2024 election, but those attempts failed. How have state requirements for wages shifted as of the beginning of 2025?
The minimum wage increased by $0.50 per hour
Without adjustments, the minimum wage can quickly fall behind inflation and the average cost of living. The federal minimum wage is just $7.25 per hour, which is not nearly enough to afford basic needs in more expensive states, like California.
Thankfully, state rules in California allow for regular minimum wage adjustments. Proposition 32 could have resulted in a $17 minimum wage, but it failed to gain enough support at the ballot box. Although attempts to increase the minimum wage by more than the baseline amount failed, a smaller wage increase still took effect.
As of January 1st, 2025, hourly employees in California should receive at least $16.50 per hour. Those living in certain cities may have a right to higher hourly wages based on local regulations. Companies that pay workers minimum wage may have to increase the base pay they offer to comply with the new state standard.
In scenarios where employers do not adhere to new minimum wage rules, the workers denied fair pay may have the right to take legal action. Lawsuits can help workers obtain unpaid wages and can effectively force employers to adjust their practices.
Especially in scenarios where multiple workers cooperate to take legal action, the wage and hour lawsuits they initiate can have a major impact. Both businesses and employees generally need to track changes in workplace laws to better ensure that they can protect their rights accordingly.