California Minimum Wage Salary Exempt, New Salary Requirements Hit California Employers

Effective january 1 2017 the minimum wage for all industries will be increased yearly.

Florida minimum wage 2020 ballot. This means that the minimum salary for exempt employees in california will also be increasing annually. On january 1 2020 californias statewide minimum. When the minimum wage increases as it will on january 1 2020 so does the exempt salary threshold.

Exempt employees in california generally must earn a minimum monthly salary of no less than two times the state minimum wage for full time employment. California employers should take note of the following changes to state and local minimum wage laws set to take effect on january 1 2020 and will impact both nonexempt and exempt employees. Although there are some exceptions almost all employees in california must be paid the minimum wage as required by state law.

Each year on january 1st from 2017 and 2023 the minimum wage is set to increase. A new year means new changes to californias minimum wage laws. California law has a minimum salary test that employees must meet before they can be classified as exempt from wage and hour laws overtime breaks lunches along with a duties test.

Californias minimum wages and exempt salary thresholds increase in 2020 sb 3 enacted in the 2015 2016 legislative session sets forth a schedule for minimum wage increases through 2023. California law requires employers to pay non. Simply paying an employee a salary does not make them exempt nor does it change any requirements for compliance with wage and hour laws.

California state minimum wage. 1 2020 for employers with 26 employees or more the minimum wage will increase from 12 per hour to 13 per hour and the exempt annual. To qualify as an exempt employee california requires that an employee must be primarily engaged in the duties that meet the test of the exemption and earns a monthly salary equivalent to no less than two times the state minimum wage for full time employment labor code section 515.

According to the department of industrial relations for the state of california the minimum wage is 12 an hour for employers with 25 employees or less and 13 an hour for employers with 26 employees or more. This will increase the minimum salary requirement for exempt workers each year based on the following schedule. Californias threshold is currently 4576000 annualized for employers with 25 employees or less and 4992000 for employers with 26 employees or more.

Importantly californias minimum wage is set to increase every year on january 1 st until 2023. Non exempt employees are required to make at least minimum wage. This calculation gives us a monthly salary that is equal to twice the state minimum wage for full time employment17.