The cities of Santa Clara and Sunnyvale will see significant increases in their minimum wage rates starting January 1, 2025. Santa Clara’s minimum wage will rise to $18.20 per hour, while Sunnyvale will increase its rate to $19 per hour.
Both cities adjust their minimum wage annually based on the Consumer Price Index for the San Francisco-Oakland-Hayward region, as reported by the U.S. Department of Labor’s Bureau of Labor Statistics.
While California’s state minimum wage will increase to $16.50 per hour, this will not affect the local wages in Santa Clara and Sunnyvale, which will remain higher.
Notably, California’s minimum wage hike is applicable statewide, and the new rate will apply to all businesses, regardless of size. However, AB1228, which was signed into law, sets the state’s minimum wage for fast food chains at $20 per hour starting April 1, 2024.
To qualify as a fast food chain, a business must be a limited-service restaurant with at least 60 establishments nationwide and primarily sell food and beverages for immediate consumption.
Interestingly, Proposition 32, which sought to raise the state minimum wage to $18 per hour, did not pass in November. Despite that, the scheduled state wage increase will still go into effect, while local ordinances in Santa Clara and Sunnyvale continue to outpace the state’s base rate.