Several states and local jurisdictions will increase their minimum wage rates on July 1, 2025. Below is a summary of these changes and guidelines to help you comply with the requirements in your area.
As a reminder, when federal and state or local payroll laws differ, the employer must adhere to the law that benefits the employee the most. In cases where the state exceeds the federal minimum wage of $7.25, the employee must be paid the higher state wage.
Need a refresher on other states? You can find a complete list of minimum wages by state on the Department of Labor’s website. You can also view a summary of state wages that took effect on January 1, 2025.
Click here for a handy downloadable version of these updates:
DOWNLOAD: STATE MINIMUM WAGE UPDATES
State Minimum Wage Increases
The following table covers increases for all applicable states. Unless otherwise noted, all rates are effective July 1, 2025. Some states adjust annually to account for inflation. Nextep will update accordingly as announcements are made.
| State | Hourly Minimum Wage Rate |
| Alaska | $13.00 |
| District of Columbia | $17.95 |
| Oregon | $15.05 |
Local Minimum Wage Increases
Several cities and counties are also increasing their minimum wage effective July 1, 2025.
| Locality | Hourly Minimum Wage Rate |
| Alameda, CA | $17.46 |
| Berkeley, CA | $19.18 |
| Emeryville, CA | $19.90 |
| Fremont, CA | $17.75 |
| Long Beach, CA | TBD |
| Los Angeles, CA | $17.87 |
| Los Angeles County, CA | $17.81 |
| Milpitas, CA | $18.20 |
| Pasadena, CA | $18.04 |
| San Francisco, CA | $19.18 |
| Santa Monica, CA | $17.81 |
| Chicago, IL | $16.60 |
| Montgomery County, MD* | $17.65- Large Employers $16.00- Mid-Size Employers $15.50- Small Employers |
| St. Paul, MN* | $15.00- Small Employers $13.25- Micro Employers |
| Portland, OR | $16.30 |
| Burien, WA | $20.16 |
| Everett, WA* | $20.24- Large $18.24- Small |
| Renton, WA | $19.90 |
| Tukwila, WA | $21.10 |
* See the location’s Department of Labor website for the state’s definition of micro, small, mid-sized, and large employers.
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