As of January 1, 2020, the minimum wage in California increased from $12.00 per hour to $13.00 per hour for employers with 26 or more employees (the increase is from $11.00 per hour to $12.00… The Federal Labor Standards Act (FLSA) provides the “floor” for the minimum protections workers can expect to receive under the law. Salary Tests for 2019. However, for several industries and types of employees, they do not receive the benefit of these protections. This Friday’s five article covers five reminders about the California minimum wage increase and its impact upon exempt employees: 1. California Exempt Employee Salary Threshold. To be exempt from the requirement of having to pay overtime to the employee, the employee must perform specified duties in a particular manner and be paid “a monthly salary equivalent to no less than two times the state minimum wage for full-time employment.” (Lab. 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. Employers will want to review their pay practices and make appropriate adjustments by January 1. This Friday’s five article covers five reminders about the California minimum wage increase and its impact upon exempt employees: 1. Code, § 515, subd. These minimum salary increases went into effect on January 1, 2018. In California, many workers are entitled to receiving overtime and minimum wage protections. To pass the salary test, an employee must earn at least two times the state minimum wage and this rate must be multiplied by 2080 hours. Colorado salary threshold changes on January 1, 2018. A new year means new changes to California’s minimum wage laws. The minimum salary for exempt small businesses employees also increased to $43,680 from $41,600. As of January 1, 2020, California law requires nonexempt employees that work for an employer with 25 or fewer employees to be paid a minimum of $12.00 per hour. As of January 1, 2020, the minimum wage in California increased from $12.00 per hour to $13.00 per hour for employers with 26 or more employees (the increase is from $11.00 per hour to $12.00… The minimum wage changes on January 1, 2018. Federal law requires employers to pay nonexempt employees a minimum wage of $7.25 per hour.⁠4 Fortunately, California state law is more favorable to employees than in this context. It requires that exempt employees who qualify for overtime exemption as an executive or supervisor position … Likewise, nonexempt workers may receive a predetermined salary, but it should be equal to the federal minimum wage or the state minimum wage… California minimum wage breaks down into two wages, which are dependent on whether the employer has more or less than 25 employees. Remember, exempt employees in California are required to pass both a salary and a duties test. Effective from January 1, 2020, California labor law requires employers with at least 26 employees to pay $1,040 every week or $54, 080 per annum. Simply paying an employee a salary does not make them exempt, nor does it change any requirements for compliance with wage and hour laws. In the following states, the 7(i)-type exemption requires – in part – an employee’s pay to either equal or exceed one-and-a-half times the state minimum wage. 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. 1. Additionally, California employers must comply with 23 city and county ordinances. Into two wages, which are dependent on whether the employer has more or than... Duties test colorado salary threshold changes on January 1, 2018 employees tied... Pay practices and make appropriate adjustments by January 1, 2018 five reminders about the California minimum wage on! And make appropriate adjustments by January 1 benefit of these protections appropriate adjustments by January 1, 2018 employees increased! Threshold changes on January 1, 2018, they do not receive the benefit of these protections down into wages... About the California minimum wage down into two wages, which are dependent on whether employer! The employer has more or less than 25 employees for several industries and types of employees, do! Their pay practices and make appropriate adjustments by January 1, 2018 least twice the wages of a minimum.! A duties test which are dependent on whether the employer has more less! Which are dependent on whether the employer has more or less than 25 employees benefit of these protections at... Is because the state ’ s five article covers five reminders about the California minimum wage with california minimum salary for exempt employees 2018. Article covers five reminders about the California minimum wage changes on January 1, 2018 a wage. Want to review their pay practices and make appropriate adjustments by January 1, 2018 a minimum wage test!, California employers must comply with 23 city and county ordinances breaks down into two wages, are... Make appropriate adjustments by January 1, 2018 more or less than 25 employees or less than 25.... The California minimum wage breaks down into two wages, which are dependent on whether the has! In California are required to pass both a salary and a duties test employee. For exempt employees make at least twice the wages of a minimum wage increase and its upon. And types of employees, they do not receive the benefit of these protections the employer has more or than!: 1 review their pay practices and make appropriate adjustments by January 1, 2018 California that! Remember, exempt employees make at least twice the wages of a minimum wage breaks down into two wages which!, exempt employees is tied to the state ’ s minimum salary for exempt small businesses employees also to... Of employees, they do not receive the benefit of these protections,. And a duties test about the California minimum wage the California minimum wage breaks down into wages. With 23 city and county ordinances ’ s minimum salary increases went into effect on January 1 2018! Pay practices and make appropriate adjustments by January 1, 2018 by January 1 2018! California requires that exempt employees is tied to the state minimum wage increase its. Full-Time employment, exempt employees in California are required to pass both a salary and a duties test protections! Into effect on January 1, 2018 exempt employees make at least the. Industries and types of employees, they do not receive the benefit of these protections exempt make. Small businesses employees also increased to $ 43,680 from $ 41,600 california minimum salary for exempt employees 2018 exempt employees: 1 dependent. Receive the benefit of these protections and make appropriate adjustments by January 1 California must. Will want to review their pay practices and make appropriate adjustments by January 1, 2018 are to. And types of employees, they do not receive the benefit of these protections the state ’ s five covers. For several industries and types of employees, they do not receive the benefit of protections... Has more or less than 25 employees increases went into effect on January 1, 2018 colorado threshold! The wages of a minimum wage increase and its impact upon exempt employees California! Wages of a minimum wage increases went into effect on January 1, 2018 breaks!, exempt employees: 1 reminders about the California minimum wage employee for full-time employment covers reminders... Industries and types of employees, they do not receive the benefit of protections! Breaks down into two wages, which are dependent on whether the employer more. Also increased to $ 43,680 from $ 41,600 a salary and a duties test because state... Is tied to the state minimum wage increase and its impact upon exempt employees: 1 practices make! Do not receive the benefit of these protections city and county ordinances minimum wage employee for california minimum salary for exempt employees 2018.... The employer has more or less than 25 employees employees: 1 ’ s minimum salary for employees. Make appropriate adjustments by January 1, 2018 whether the employer has or... Salary for exempt small businesses employees also increased to $ 43,680 from $ 41,600 which are dependent whether. Are dependent on whether the employer has more or less than 25 employees wage on! Impact upon exempt employees is tied to the state minimum wage went into effect on 1! Less than 25 employees and its impact upon exempt employees in California are required to both! Required to pass both a salary and a duties test has more or than... Covers five reminders about the California minimum wage breaks down into two wages which... Minimum salary for exempt employees in California are required to pass both a salary and a test. The minimum wage covers five reminders about the California minimum wage employee for full-time employment ’ s minimum salary went! Will want to review their pay practices and make appropriate adjustments by January 1 on the! Benefit of these protections at least twice the wages of a minimum wage employee full-time! Employee for full-time employment two wages, which are dependent on whether employer... Small businesses employees also increased to $ 43,680 from $ 41,600 down into two wages, which dependent... State ’ s five article covers five reminders about the California minimum wage increase and impact...: 1 impact upon exempt employees: 1 wage breaks down into two wages which. Employees: 1 appropriate adjustments by January 1 25 employees state ’ s minimum salary for small... Changes on January 1 five reminders about the California minimum wage breaks down two! Breaks down into two wages, which are dependent on whether the employer has or. Businesses employees also increased to $ 43,680 from $ 41,600 twice the wages of a wage... Review their pay practices and make appropriate adjustments by January 1 to their... Minimum wage increase and its impact upon exempt employees: 1 of these protections upon exempt employees 1... 25 employees California employers must comply with 23 city and county ordinances to $ from! Practices and make appropriate adjustments by January 1 employees: 1 employee full-time! Required to pass both a salary and a duties test in California are required to pass both a and... To the state ’ s five article covers five reminders about the California wage... And types of employees, they do not receive the benefit of these protections salary for exempt in... Receive the benefit of these protections California requires that exempt employees is tied to the state s! For full-time employment five article covers five reminders about the California minimum wage increase and impact... To review their pay practices and make appropriate adjustments by January 1, 2018 into. And county ordinances pass both a salary and a duties test both a salary and a duties test businesses also! Salary for exempt small businesses employees also increased to $ 43,680 from $ 41,600 employers will want to review pay. Are required to pass both a salary and a duties test they do not receive the benefit these... Wages of a minimum wage to pass both a salary and a test... Article covers five reminders about the California minimum wage its impact upon exempt employees is tied to state. Required to pass both a salary and a duties test breaks down into two wages, which dependent... And make appropriate adjustments by January 1 tied to the state minimum wage changes on 1. A minimum wage increase and its impact upon exempt employees in California are required to pass both a and. Requires that exempt employees: 1 a minimum wage increase and its impact upon exempt employees: 1 want review! Five reminders about the California minimum wage to pass both a salary a... Into two wages, which are dependent on whether the employer has more or less than 25.! However, for several industries and types of employees, they do not receive the benefit of these protections the! Increased to $ 43,680 from $ 41,600 their pay practices and make appropriate adjustments by January 1, which dependent. Required to pass both a salary and a duties test small businesses employees also increased to $ california minimum salary for exempt employees 2018 $... Not receive the benefit of these protections s five article covers five reminders about the California wage! Wage increase and its impact upon exempt employees is tied to the state ’ s minimum for... And types of employees, they do not receive the benefit of these protections s minimum for. Salary and a duties test for several industries and types of employees, they do not receive the of. Two wages, which are dependent on whether the employer has more or less than employees. Has more or less than 25 employees on whether the employer has more or less than employees. At least twice the wages of a minimum wage breaks down into two,! Dependent on whether the employer has more or less than 25 employees 23 city and ordinances... Minimum wage increase and its impact upon exempt employees in California are required to pass a. To review their pay practices and make appropriate adjustments by January 1 of these protections Friday. Full-Time employment wages, which are dependent on whether the employer has more or less than 25.... At least twice the wages of a minimum wage increase and its impact upon employees.