Minimum Wage Changes Effective July 1, 2025

Two states, the District of Columbia, and many 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 your minimum wage requirements.

State and district minimum wage increases

This table covers July 1, 2025 minimum wage increases for all applicable states and the District of Columbia. Some states increase their minimum wage rates on a different schedule. The information below applies only to July 1, 2025 increases.

* Oregon: Oregon's minimum wage differs based on where the employee works in the state. Employers with a fixed location must pay at least the regional rate applicable to that location whenever an employee works on site at least 50 percent of the pay period. Employees who don’t work at least 50 percent of the pay period at the employer’s fixed location in Oregon need to be paid at least the rate applicable to the region where the work was performed. 

The regions are:

• Non-urban counties: The minimum wage for Baker, Coos, Crook, Curry, Douglas, Gilliam, Grant, Harney, Jefferson, Klamath, Lake, Malheur, Morrow, Sherman, Umatilla, Union, Wallowa, and Wheeler counties is: 
  
  o    $14.05 per hour beginning July 1, 2025.

• General: The minimum wage for outside the non-urban counties above and outside the metropolitan Portland urban growth boundary (see below) is: 
  
  o    $15.05 per hour beginning July 1, 2025.
• Portland metro: The minimum wage for the metropolitan Portland urban growth boundary is: 
  
  o    $16.30 per hour beginning July 1, 2025.

California healthcare worker minimum wage

California has enacted legislation that increases the minimum wage in phases for workers of covered healthcare employers. To receive the higher minimum wage, workers must: (1) work for “healthcare facilities” that are covered in the new law; and (2) provide healthcare services or support the provision of healthcare. The minimum wage for healthcare workers at certain healthcare facilities will increase July 1, 2025:

Local minimum wage increases

Numerous cities and counties are also increasing their minimum wage effective July 1, 2025. Some local jurisdictions adjust their minimum wages annually for inflation each July, but they haven't announced their 2025 rates yet.

The following table includes many of the announced local rate changes for 2025 as well as some other local jurisdictions that typically make annual adjustments each July but haven't announced their 2025 rate yet. This is not an exhaustive list. There may be additional local jurisdictions that have scheduled increases for July 1. Check your local laws to confirm compliance.

Other considerations

Tipped employees

In some jurisdictions, the minimum cash wage required for tipped employees also increases with the minimum wage. For example, the minimum cash wage for tipped employees in the District of Columbia will increase from $10.00 per hour to $12.00 per hour on July 1, 2025. In the District of Columbia, if an employee's hourly tip earnings (averaged weekly) and cash wages don't equal or exceed $17.95 per hour, the employer must pay the difference. Check your state and local law to determine whether the minimum cash wage is changing on July 1, 2025.

Multiple minimum wage rates

If an employee is subject to more than one minimum wage requirement (such as federal, state and local), you should generally comply with the rate most generous to the employee. For example, if your state minimum wage is $15 and the local minimum wage is $16, you must generally pay the employee at least $16 per hour, since it's higher than the state and federal minimum wage rates. 

Additionally, if your business is located in one state, but you have employees (such as remote workers) working in another jurisdiction, the minimum wage in the location where the employee performs work generally applies.

Employees earning more than the minimum wage

When the minimum wage increases, some employers provide a raise to employees already earning equal to or more than the new rate. While there's no obligation to provide a raise in such cases, some employees may be expecting one. Consider the potential impact on labor costs, employee morale, internal equity (how employees are paid when compared with other employees within your company based on skills and experience), and your typical merit increase schedule.

New posters

Most jurisdictions require employers to post an up-to-date minimum wage notice in the workplace. State and federal posters are available for download in the HR section of the RUN Powered by ADP® platform. ADP clients with the Labor Law Poster Compliance Update Service receive updated posters automatically. Your state or city may have additional notice requirements. Check your jurisdiction's requirements to ensure compliance.

More 2025 increases coming

Some jurisdictions schedule their changes at another point during the year. For example, Florida's minimum wage will increase to $14.00 per hour on September 30, 2025. Closely monitor minimum wage changes in your jurisdiction to ensure compliance.

Overtime exemptions

In some states, including Alaska and Oregon, the minimum salary required to be classified as exempt from overtime under state law is tied to the minimum wage.

For example, to be classified as exempt from overtime under Alaska state law (Alaska Statute 23.10.055), bona fide administrative, professional and executive employees must receive a weekly salary that is at least twice the minimum wage for a 40-hour week and satisfy duties tests. As a result of the change in the state’s minimum wage, the minimum salary required for these exemptions under Alaska law increases to $1040 per week on July 1, 2025. 

Unlike Alaska’s new salary requirements, Oregon's new minimum salary requirements for exemption will still be lower than the federal salary requirement of $684 per week as of July 1, 2025. Therefore, the change in the state's salary requirements for exemption will likely impact only employees who aren't covered by the federal Fair Labor Standards Act (virtually all employees are covered) but are covered by state law. 

To determine the weekly minimum salary requirement for exemption from overtime, Oregon uses the following formula:

• Multiply the applicable minimum wage by 2,080 and then divide by 12 and then divide by 4.3.

Conclusion

Ensure that you understand the minimum wage rules that apply to your employees. And, if applicable and if you are an ADP RUN client, make any necessary changes in RUN Powered by ADP® before July 1, 2025. Additionally, be sure to post updated minimum wage notices in each work location.