● The average Orange County household spends about $77,024/year on expenses, with 36.7% going toward housing. ● The "living wage" needed for a family of four is estimated at $109,833–$114,841/year to cover basic needs. ● Housing affordability challenges remain high, though exact renter cost-burden figures are not as clearly reported as in San Diego. ● Recent data doesn’t specify an exact “housing wage” for Orange County, but given higher costs, it would be above San Diego’s $28.58/hour for a two-bedroom. Why this impacts salaries: The higher household spending and living wage mean employers must offer more competitive pay in industries sensitive to housing costs. Cost of Living Insights Federal Overtime Tax Deduction (2025–2028) ● Workers can now deduct up to $12,500 (single) or $25,000 (joint) of overtime earnings from federal taxable income. ● Applies to tax years 2025 through 2028. ● Especially relevant in overtime-heavy industries like manufacturing. Why that impacts salary: Employers may face less pressure for base wage increases. Captive Audience Meeting Bans (multi-state trend) ● Laws now prohibit employers from forcing workers to attend anti-union or political meetings. ● States with bans include CA, NY, IL, OR, WA (and momentum is spreading). ● Reduces employers’ ability to influence workers during union campaigns. Why that impacts salary: Union drives typically result in higher negotiated wage floors. MMEDS Act ● A 2025 bill (H.R. 3042) proposes tax credits for wages, benefits, and facilities. ● Targets distressed zones to encourage onshore med-device manufacturing. ● Designed to reduce reliance on overseas supply chains. Why that impacts salary: Creates wage competition for specialized med-device workers. Legislation Insights ● Manufacturing employs about 130,342 people, representing 13.5% of California’s advanced manufacturing jobs. ● The sector remains in positive but is projected to decline by 6% (losing ~8,144 jobs over 5 yrs). Average earnings per advanced manufacturing job are approximately $91,177 annually, above many other local industries. Why that impacts salary: Employers must offer competitive wages to attract and retain talent in a high-paying, yet contracting, marketplace. Orange County Insights California Minimum Wage & Exempt Thresholds ● As of Jan 1, 2025, CA’s minimum wage increased to $16.50/hour. ● The exempt salary threshold also rose to $68,640/year (≈ $5,720/month). ● Roles below this threshold cannot legally be classified as exempt. ● Employers must decide to reclassify positions or increase salaries. Why that impacts salary: Raises entry-level pay floors and compresses pay bands upward. Wage Insights Request A Custom Salary Guide