SCV Minimum Wage Changes (2025 Update)

Minimum Wage Increase for Businesses within City of Santa Clarita on January 1st, 2025, and those within unincorporated LA County on July 1st, 2025.

Are you confused about the minimum wage increases? You’re not alone! The Santa Clarita Valley (SCV) is in a unique situation in that the City of Santa Clarita and the County of Los Angeles have two different minimum wage increase schedules which has caused confusion and challenges for many of our local employers and residents alike.

The City increases its wages in keeping with the State of California’s schedule (January - December), while the County of Los Angeles has adopted a wage increase schedule based on their fiscal calendar (July - June). Beginning in 2022 and continuing each year thereafter, on January 1, the LA County CEO determines the adjusted rates, which shall take effect on July 1 of that year.

This November Californian voters rejected Proposition 32 by a narrow margin, a measure that would have immediately raised the state minimum wage for employers with twenty-six or more employees to $17.00 per hour and to $18.00 per hour on January 1, 2025. Proposition 32 also would have increased the minimum wage for employers with twenty-five or fewer employees to $17.00 per hour on January 1, 2025, and to $18.00 per hour on January 1, 2026.

The California Minimum Wage notice for 2025 will be available later this year in the workplace postings section of the Department of Industrial Relations (DIR)’s website.

City of Santa Clarita

The California Director of Finance must annually determine and certify to the governor and Legislature whether the minimum wage must be adjusted for inflation and calculate the increase, which is the lesser of 3.5 percent or the rate of change in inflation. The minimum wage in California was set to increase each year until it reached $15/hr in 2022. However, on January 1, 2023, a new minimum wage of $15.50 was set to go into effect due to the high inflation rate. On August 1st, 2024, the Director of Finance announced that the State minimum wage shall increase by 3.18 percent, the amount in which the United States Consumer Price Index for Urban Wage Earners and Clerical Workers (U.S. CPI-W) rose between July 1, 2023 to June 30, 2024.

In keeping with the State, the minimum wage for businesses within the City limits of Santa Clarita will increase to $16.50 per hour for all employers as of January 1, 2025. This increase applies to companies with up to 25 employees and those with 26 or more employees.

This year, it is essential to highlight that Santa Clarita earned the lowest cost tier in the Kosmont-Rose Institute's 2024 Cost of Doing Business Survey. Remarkably, Santa Clarita was the sole city in Los Angeles County to achieve this distinction, emphasizing its capacity to provide a competitive and affordable environment attractive to businesses of all sizes.

Unincorporated LA County

On July 1, 2024, SCV businesses in unincorporated Los Angeles County (LAC), those primarily located on the west side of the I-5 freeway, increased their minimum wage to $17.27 per hour. The “unincorporated” areas of LAC include neighborhoods outside of incorporated cities, such as Castaic, Val Verde, Agua Dulce, etc., and must abide by the County's wage requirements. This increase applied to companies with up to 25 employees, as well as those with 26 or more employees. Beginning in 2022 and continuing each year thereafter, on January 1, the CEO determines the adjusted rates, which shall take effect on July 1 of that year. The minimum wage for all businesses in the unincorporated areas will rise to $17.81 effective July 1, 2025.

For updates on Fast Food Workers and Healthcare Facility wage increases, visit the Department of Industrial Relations website for the most current changes.

If you have questions about the minimum wage increase, give us a call. Our business assistance team is a one-stop resource for local companies. From obtaining workforce training at low or no cost to learning about local, state, and federal tax incentives, from expediting business issues resolution to managing local business coalitions, the SCVEDC is the focal point in delivering the support local companies need.

For frequently asked questions about minimum wage for businesses in unincorporated LAC, visit the Department of Consumer and Business Affairs (DCBA) website at https://dcba.lacounty.gov/minimum-wage-for-businesses/. To determine if work is done in an unincorporated area of L.A. County, enter the address at the County Registrar-Recorder’s website. Follow the DCBA's guide for step-by-step instructions. You can also call the DCBA or email them at info@dcba.lacounty.gov.

The Santa Clarita Valley Economic Development Corporation (SCVEDC) is a unique private / public partnership representing the united effort of regional industry and government leaders. The SCVEDC utilizes an integrated approach to attracting, retaining and expanding a diversity of businesses in the Santa Clarita Valley, especially those in key industry clusters, by offering competitive business services and other resources.