California

California Payroll Updates - October 2024

Quick Look

Week Of 10.28.2024

Summary of the minimum wage changes in California for January 1, 2025

  • Half Moon Bay: Minimum wage increases to $17.47 per hour.
  • Daly City: Minimum wage increases to $17.07 per hour.
  • Belmont: Minimum wage increases to $18.30 per hour.
  • San Jose: Minimum wage increases to $17.95 per hour.
  • Sunnyvale: Minimum wage increases to $19.00 per hour.

These increases apply to all employees working at least two hours per week in these cities, regardless of their immigration status. Tips or fringe benefits cannot be used to offset the minimum wage requirement.

Additionally, the overtime exemption thresholds for computer software professionals and licensed physicians and surgeons are also changing in 2025.

  • Computer software professionals are exempt from overtime if they earn at least $56.97 per hour or meet specific salary requirements.
  • Licensed physicians and surgeons are exempt from overtime if they earn at least $103.75 per hour.

Last updated: November 7, 2024
Detailed Look

Week Of 10.28.2024

California Novato Minimum Wage Increases to $17.27 January 1, 2025

The City of Novato announced increases to its minimum wage rates to the following in 2025: $17.27 per hour for very large businesses with 100 or more employees (adjusted based on CPI-W); $17.00 per hour for large businesses with 26-99 employees; and $16.42 per hour for small businesses with 1-25 employees. The Novato minimum wage applies to each employee who performs more than two hours of work in a particular week within city limits. For information on California local minimum wage rates, see Payroll Guide ¶19,049.

California Unemployment and Disability Information for 2025 Announced

The California Employment Development Department (EDD) announced that unemployment tax rates will again be determined under the state's highest Schedule F+ in 2025. Schedule F+ contains an additional 15% percent emergency surcharge, rounded to the nearest tenth. Rate range from 1.5% percent to 6.2%. Employers have paid unemployment taxes under Schedule F+ for several years. The 2025 new employer rate and wage base for unemployment tax purposes also remain unchanged next year at 3.4% and $7,000, respectively. In addition, the Employment Training Tax (ETT) continues to be 0.1% in 2025. The EDD also announced that the state disability insurance (SDI) withholding rate for 2025 is 1.2%. For more information on experienced employer rates in California, see Payroll Guide ¶11,605.

California Redwood Minimum Wage Increases to $18.20 in 2025

Redwood City increases its minimum wage from $17.70 per hour to $18.20 per hour, effective January 1, 2025. The rate applies to all employees who perform at least two hours of work per week in Redwood, regardless of immigration status. Tips or fringe benefits cannot be used as a credit towards the employer’s obligation to pay the minimum wage. For information on local minimum wage rates in California, see Payroll Guide ¶19,049.

Week Of 10.21.2024

Half Moon Bay Minimum Wage Increases to $17.47 January 1, 2025.

The City of Half Moon Bay increases its minimum wage from $17.01 per hour to $17.47 per hour, effective January 1, 2025. The rate applies to all employees who perform at least two hours of work per week in Half Moon Bay, regardless of immigration status. Tips or fringe benefits cannot be used as a credit towards the employer’s obligation to pay the minimum wage. For information on local minimum wage rates in California, see Payroll Guide ¶19,049.

Physician and Computer Professional Overtime Exemption Thresholds Announced for 2025. Effective January 1, 2025, computer software professionals are exempt from overtime if they are paid at least $56.97 per hour (currently, $55.58 per hour), or (1) are paid on a salary basis; (2) earn an annual salary of at least $118,657.43 (currently, $115,763.35); and (3) are paid at least $9,888.13 monthly (currently, $9,646.96). Licensed physicians and surgeons are exempt from overtime if they are paid at least $103.75 per hour (currently, $101.22 per hour).

California Daly Minimum Wage Increases to $17.07 January 1, 2025

Daly City increases its minimum wage from $16.62 per hour to $17.07 per hour, effective January 1, 2025. The rate applies to all employees who perform at least two hours of work per week in Daly, regardless of immigration status. Tips or fringe benefits cannot be used as a credit towards the employer’s obligation to pay the minimum wage. For information on local minimum wage rates in California, see Payroll Guide ¶19,049.

California Belmont Corrects Minimum Wage Increase to $18.30 January 1, 2025

The City of Belmont issued a correction to their original minimum wage announcement for the upcoming 2025 calendar year. Instead of $17.95 per hour, as previously reported, the new minimum wage will be $18.30 per hour as of January 1, 2025.

California San Jose Minimum Wage Increases to $17.95 January 1, 2025

The City of San Jose increases its minimum wage from $17.55 per hour to $17.95 per hour, effective January 1, 2025. The rate applies to all employees who perform at least two hours of work per week in San Jose, regardless of immigration status. Tips or fringe benefits cannot be used as a credit towards the employer’s obligation to pay the minimum wage. For information on local minimum wage rates in California, see Payroll Guide ¶19,049.

California Sunnyvale Minimum Wage Increases to $19.00 January 1, 2025

The City of Sunnyvale increases its minimum wage from $18.55 per hour to $19.00 per hour, effective January 1, 2025. The rate applies to all employees who perform at least two hours of work per week in Sunnyvale, regardless of immigration status. Tips or fringe benefits cannot be used as a credit towards the employer’s obligation to pay the minimum wage. For information on local minimum wage rates in California, see Payroll Guide ¶19,049.

Last updated: November 7, 2024

Week Of 10.28.2024

California Novato Minimum Wage Increases to $17.27 January 1, 2025

The City of Novato announced increases to its minimum wage rates to the following in 2025: $17.27 per hour for very large businesses with 100 or more employees (adjusted based on CPI-W); $17.00 per hour for large businesses with 26-99 employees; and $16.42 per hour for small businesses with 1-25 employees. The Novato minimum wage applies to each employee who performs more than two hours of work in a particular week within city limits. For information on California local minimum wage rates, see Payroll Guide ¶19,049.

California Unemployment and Disability Information for 2025 Announced

The California Employment Development Department (EDD) announced that unemployment tax rates will again be determined under the state's highest Schedule F+ in 2025. Schedule F+ contains an additional 15% percent emergency surcharge, rounded to the nearest tenth. Rate range from 1.5% percent to 6.2%. Employers have paid unemployment taxes under Schedule F+ for several years. The 2025 new employer rate and wage base for unemployment tax purposes also remain unchanged next year at 3.4% and $7,000, respectively. In addition, the Employment Training Tax (ETT) continues to be 0.1% in 2025. The EDD also announced that the state disability insurance (SDI) withholding rate for 2025 is 1.2%. For more information on experienced employer rates in California, see Payroll Guide ¶11,605.

California Redwood Minimum Wage Increases to $18.20 in 2025

Redwood City increases its minimum wage from $17.70 per hour to $18.20 per hour, effective January 1, 2025. The rate applies to all employees who perform at least two hours of work per week in Redwood, regardless of immigration status. Tips or fringe benefits cannot be used as a credit towards the employer’s obligation to pay the minimum wage. For information on local minimum wage rates in California, see Payroll Guide ¶19,049.

Week Of 10.21.2024

Half Moon Bay Minimum Wage Increases to $17.47 January 1, 2025.

The City of Half Moon Bay increases its minimum wage from $17.01 per hour to $17.47 per hour, effective January 1, 2025. The rate applies to all employees who perform at least two hours of work per week in Half Moon Bay, regardless of immigration status. Tips or fringe benefits cannot be used as a credit towards the employer’s obligation to pay the minimum wage. For information on local minimum wage rates in California, see Payroll Guide ¶19,049.

Physician and Computer Professional Overtime Exemption Thresholds Announced for 2025. Effective January 1, 2025, computer software professionals are exempt from overtime if they are paid at least $56.97 per hour (currently, $55.58 per hour), or (1) are paid on a salary basis; (2) earn an annual salary of at least $118,657.43 (currently, $115,763.35); and (3) are paid at least $9,888.13 monthly (currently, $9,646.96). Licensed physicians and surgeons are exempt from overtime if they are paid at least $103.75 per hour (currently, $101.22 per hour).

California Daly Minimum Wage Increases to $17.07 January 1, 2025

Daly City increases its minimum wage from $16.62 per hour to $17.07 per hour, effective January 1, 2025. The rate applies to all employees who perform at least two hours of work per week in Daly, regardless of immigration status. Tips or fringe benefits cannot be used as a credit towards the employer’s obligation to pay the minimum wage. For information on local minimum wage rates in California, see Payroll Guide ¶19,049.

California Belmont Corrects Minimum Wage Increase to $18.30 January 1, 2025

The City of Belmont issued a correction to their original minimum wage announcement for the upcoming 2025 calendar year. Instead of $17.95 per hour, as previously reported, the new minimum wage will be $18.30 per hour as of January 1, 2025.

California San Jose Minimum Wage Increases to $17.95 January 1, 2025

The City of San Jose increases its minimum wage from $17.55 per hour to $17.95 per hour, effective January 1, 2025. The rate applies to all employees who perform at least two hours of work per week in San Jose, regardless of immigration status. Tips or fringe benefits cannot be used as a credit towards the employer’s obligation to pay the minimum wage. For information on local minimum wage rates in California, see Payroll Guide ¶19,049.

California Sunnyvale Minimum Wage Increases to $19.00 January 1, 2025

The City of Sunnyvale increases its minimum wage from $18.55 per hour to $19.00 per hour, effective January 1, 2025. The rate applies to all employees who perform at least two hours of work per week in Sunnyvale, regardless of immigration status. Tips or fringe benefits cannot be used as a credit towards the employer’s obligation to pay the minimum wage. For information on local minimum wage rates in California, see Payroll Guide ¶19,049.