California has the third highest minimum wage in the U.S., falling closely behind Washington D.C. ($17.50) and Washington ($16.66). Different regions of California set a much-higher minimum wage, however. Plus, certain jobs require a higher minimum wage, such as fast food where workers must receive $20 an hour or more. Each increase impacts discrimination cases.
An Overview of California’s Minimum Wage Increases in 2025
California’s overall minimum wage is $16.50. If a worker isn’t making that much, they should contact a California employment law specialist. There are a few exceptions.
- Fast-food workers must be paid $20 an hour as the minimum wage.
- Interns or “learners” must be paid at least 85% of minimum wage rounded to the nearest nickel. After 160 hours of employment, the minimum wage order begins.
- Sheepherders must make a minimum monthly wage of $4,820.42 including overtime.
Healthcare workers are also entitled to higher minimum wages. They depend on the position and inflation adjustments are made each year. These wages are effective in 2025.
- Dialysis clinics – $23
- Hospital workers in a facility with 10,000 or more full-time employees – $23
- Large county healthcare facilities (More than 5 million) – $23
- Medium county healthcare facilities (250,000 to 5 million) – $21
- Other health care facilities – $21
- Safety Net Hospitals – $18
- Skilled nursing not owned by a hospital or healthcare system – $21 (only if minimum spending requirement is passed)
- Small county healthcare facilities (Less than 250,000) – $18
- Urgent care, community, rural health and intermittent clinics – $21
If a worker is provided with meals and/or housing as part of their wages, there is a monthly maximum that can be deducted from paychecks, but it cannot lead to wages coming out to less than minimum wage.
While the state’s minimum wage is $16.50, employees need to meet the minimum wage set in their city or county. They range greatly. Unincorporated areas of Los Angeles County require a minimum wage of $17.28, while Los Angeles is $18.20. West Hollywood’s minimum wage is $19.65, but Pasadena is just $17.50. UC Berkeley Labor Center keeps an updated list for California workers to refer to in order to ensure they’re paid a fair wage.
As the cost of living and inflation increase, wages are adjusted to ensure pay is fair. If California workers aren’t paid enough to afford housing, food, and electricity, it’s a problem. Wage increases ensure this doesn’t happen.
Wage theft is a problem in California. In 2022, almost 19,000 wage theft claims were filed with the state. When a worker files a wage claim with the Labor Commissioner’s office, a hearing is supposed to occur within 120 days, and then there’s a 15-day period for the decision. The process is not going that fast, however, with some cases taking twice as long to complete. That’s just one problem with minimum wage increases.
Understanding Disparate Impact and the Ability to Prove It
Disparate impact is defined as a neutral policy or practice that negatively impacts a protected person or group. The policy or practice was never intended to cause harm, but it does anyway. This leads to workplace discrimination, even if it isn’t intentional. Wage increases can impact and even create discrimination cases.
When a wage increase takes place, an employer may not want to tap into revenues to pay for the increase. The options are to charge higher prices to clients or customers, which could impact business and drive consumers away, or reduce staff by cutting low-paying positions. Because low-paying jobs are often filled by older workers, women reentering the workforce after having children, or minorities, it takes jobs from them.
Another factor is that some jobs can be outsourced to independent contractors. If a worker’s job gets outsourced to another region, the employer saves money by avoiding paying benefits or having to meet the minimum wage requirement. Providing they hire an independent contractor from another state or country, they don’t have to meet minimum wage laws.
Your employer may determine that layoffs are necessary for the business to avoid shutting down. This is also allowable, unless the layoffs are handled unfairly. If the only people laid off are those who’ve been with the company the longest and make the most money, age discrimination is possible.
It’s not always easy to prove that increased wages caused employment discrimination. Companies have the right to outsource jobs, even if it is to avoid having to pay minimum wage. This makes it hard to win this type of case, but an experienced California employment law attorney helps you determine if you have the necessary evidence for a winnable claim.
Real-Life Examples of Discrimination Related to Minimum Wage Increases
In December, Disney settled a class action suit regarding minimum wage. Disney must pay $233 million to over 50,000 workers. In 2018, Anaheim voters passed Measure L, an act that mandated any hospitality business that receives tax rebates from the city must pay its workers $15 an hour plus a 2% pay increase each year. When it passed, Disney evaded having to pay its workers the increased minimum wage by canceling tax subsidies and restoring entertainment tax payments.
Under the settlement, workers will receive all the backpay they’re owed for the past five years plus 10% interest. The settlement is awaiting final court approval.
In San Francisco, Burger King was ordered to pay $2.2 million. One worker’s shift ended, but no other employees arrived to run the kitchen so she had to stay and didn’t get paid overtime. Managers were told to lower labor costs to cover the cost of minimum wage increases, forcing managers to work as cashiers, janitors, and cooks to meet the stakeholders’ demands.
Similar lawsuits have been filed against other fast food chains, including Subway, where a worker was pushed into working more than 100 hours per week without getting overtime pay. When she spoke up about wage theft, she was threatened with her immigration status.
Many more cases exist, and their success depends on the evidence. You need to have as much evidence as you can. Document everything, get statements from co-workers, and save any messages or emails you receive.
What Should You Do Now?
Don’t let the fear of having a valid complaint keep you from bothering to file a claim. It’s always worth a free consultation with an employment discrimination specialist. Shegerian Conniff is here to ensure you’re treated fairly. Reach us online or by phone to schedule a free consultation to discuss your complaint and determine the next steps.
