If you’re trying to run a business in Santa Monica or just trying to make rent, the numbers are shifting again. It’s a lot to keep track of. One day you’re looking at the state rate, the next you’re realizing Santa Monica has its own set of rules that don't always play nice with the neighbors.
Basically, the santa monica minimum wage 2025 update isn't just one single number. It depends on where you work, what you do, and even how many rooms are in the building if you’re in the hospitality game.
Honestly, it’s a bit of a maze.
The Big Number: July 1, 2025
Let's get the main headline out of the way. For most workers in the city, the rate is going up.
Starting July 1, 2025, the Santa Monica minimum wage increases to $17.81 per hour.
This isn't just a random number someone pulled out of a hat. It's an adjustment based on the Consumer Price Index (CPI-W) for the Los Angeles metropolitan area. The city takes a look at how much more expensive life has become—think eggs, gas, and rent—and nudges the wage up to try and keep pace.
Before this hike, the rate was sitting at $17.27. So, we're looking at a 54-cent jump. It might not seem like a fortune, but for a full-time worker, that’s roughly an extra $90 a month before taxes.
The "Hotel Worker" Exception (It's Huge)
If you work in a hotel, or even a business operating on hotel property (like a spa or a gift shop), the $17.81 figure doesn't apply to you. You're in a different bracket entirely.
Santa Monica decided a while back to tie its hotel wages to the City of Los Angeles. It’s a move to keep the local tourism industry competitive and, frankly, to avoid a mass exodus of staff moving a few miles east for better pay.
For a hot minute in mid-2025, things were confusing because of a legal back-and-forth in LA. There was a referendum petition trying to stop a massive pay jump. But that petition failed.
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As of September 8, 2025, the hotel worker minimum wage in Santa Monica is $22.50 per hour.
That is a massive gap compared to the standard city rate. We're talking nearly five dollars more per hour just because of the industry. If you were working in a Santa Monica hotel between July and early September 2025, you were likely earning $21.01 while the lawyers sorted out the paperwork. Now, the $22.50 rate is the law of the land.
Why Santa Monica Isn't Just "The Same as LA"
You'd think being right next door would mean the rules are identical. Nope.
While the hotel rates are now synced up, the general "all-purpose" minimum wage has subtle differences. For example, Los Angeles City hit $17.87 on July 1, 2025. Santa Monica hit $17.81.
Six cents.
It sounds petty, doesn't it? But if you’re a payroll manager for a company with offices in both Santa Monica and Venice, that six-cent difference is a headache. You can't just apply a blanket "LA area" rate and hope for the best.
Paid Sick Leave: The Part Everyone Forgets
The santa monica minimum wage 2025 rules aren't just about the hourly pay. The city is also pretty strict about sick time.
If you’re a small business (25 or fewer employees), you have to provide at least 40 hours of paid sick leave. If you’re a "large" business (26 or more), that number jumps to 72 hours.
You’ve got to be careful here. California state law has its own requirements for sick leave (usually around 40 hours or 5 days), but Santa Monica’s local ordinance for larger businesses is much more generous. If you're an employer, following the state rule while ignoring the city rule is a fast way to get a visit from the Department of Consumer and Business Affairs (DCBA).
What About "Learners" and Non-Profits?
There's always a "but."
In Santa Monica, there's a specific provision for "learners." These are employees who may not have the experience yet for the full role. Employers can pay them 85% of the minimum wage, but only for the first 160 hours of employment. After that, the training wheels come off and the full rate kicks in.
Non-profits also have a slight "out," though it’s not a guarantee. Some non-profits can apply for a waiver if they can prove that paying the full city minimum wage would cause them serious financial hardship. It’s not a "get out of jail free" card; you have to apply and get it approved by the city.
Enforcement Is Getting Serious
Don't think the city isn't watching. The LA County DCBA actually handles the enforcement for Santa Monica. They don't just wait for people to complain, either. They do audits.
If a business gets caught underpaying, it’s not just about back pay. There are fines. There are penalties. And honestly, the reputational hit in a tight-knit community like Santa Monica can be worse than the check you have to write to the city.
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Actionable Steps for 2025 and Beyond
If you’re a business owner or an employee, here is what you need to do right now to stay on the right side of the law:
- Update Your Posters: The law requires you to display the current "Official Minimum Wage Notice" in a place where employees can actually see it. If yours still says $17.27, you're technically out of compliance.
- Audit Your Payroll by Industry: If you are a "mixed" business—say, a restaurant that happens to be inside a hotel—double-check your classification. You might owe that $22.50 rate instead of the $17.81.
- Track Your Hours by Location: If you have employees who work in different cities, they must be paid the Santa Monica rate for any hour (or even two hours in a week) they spend working within Santa Monica city limits.
- Plan for July 2026: This is an annual cycle. Every January, the city announces the new rate based on the CPI, which then goes into effect on July 1. Keep an eye out in early 2026 for the next bump.
Living and working in Santa Monica is expensive. These wage increases are a lifeline for many, but they require a lot of due diligence for the people signing the paychecks. Whether you're a barista at a local cafe or a manager at a luxury resort, knowing these specific numbers for 2025 is the only way to make sure nobody is getting shortchanged.