California continues to implement its stair-step minimum wage increases. Effective January 1, 2020, the statewide minimum wage for employers with 25 or fewer employees increased to $12.00 per hour, and employers with 26 or more employees must pay at least $13.00 per hour.
This increase also affects the minimum salary requirements for exempt employees. For employers with up to 25 employees, the minimum annual salary requirement will increase to $49,920; for employers with 26 or more employees, the minimum annual salary requirement will increase to $54,080. Please don’t assume you can pay any employee a salary. Check with us to confirm that their job duties fit within an approved exemption.
NOTE: Many California counties and cities have established local minimum wage ordinances that exceed the state minimum wage. Employers must comply with the higher rate.
Please call our office with your questions about minimum wage, overtime, meal and rest breaks, and all the issues that can create liability for California employers.