News
Jonathan Judge of Atkinson, Andelson, Loya, Ruud & Romo gave an update in the upcoming minimum wage and minimum salary increases. The following is excerpts from AALFF Alert: Senate Bill 3 raises California’s minimum wage to $15.00 per hour by 2022. Employers with 25 or fewer employees will receive a one-year delay on each of the increases.
Effective Date | Non Exempt Employees |
---|---|
Jan 1, 2017 | $10.50 per hour |
Jan 1, 2018 | $11.00 per hour |
Jan 1, 2019 | $12.00 per hour |
Jan 1, 2020 | $13.00 per hour |
Jan 1, 2021 | $14.00 per hour |
California Salary basis also are affected by the minimum wage increase. The minimum salary requirement for exempt employees under California law is also tied to the minimum wage. The law requires employers to pay exempt employees a salary equivalent to at least two times the state minimum wage (employees must also satisfy specified duties test to qualify as exempt). The current minimum salary requirement for exempt employees in California is $41,600.
Effective Date | Exempt Employees |
---|---|
Jan 1, 2017 | $43,680 per year |
Jan 1, 2018 | $45,760 per year |
Jan 1, 2019 | $49,920 per year |
Jan 1, 2020 | $54,080 per year |
Jan 1, 2021 | $58,080 per year |
Jan 1, 2022 | $62,400 per year |