California workers are getting a raise! As of January 1st, 2024, the state minimum wage increased to $16 per hour. This applies to all employers in the state, regardless of their size.
The update also impacts exempt employees, those typically classified as salaried and not entitled to overtime pay. Previously, there wasn't a strict minimum salary requirement for exempt workers. Now, to qualify for exempt status, these employees must be paid a minimum annual salary of $66,560.
Here's a breakdown of the key changes:
Regular Minimum Wage: Increased to $16 per hour, effective January 1st, 2024.
Exempt Employee Salary: Minimum annual salary of $66,560 required for exempt status, effective January 1st, 2024.
What this means for you:
Employers: Review your payroll structure and ensure all employees are classified correctly, especially those previously considered exempt. You may need to adjust salaries to meet the new minimum requirement.
Employees: If you're unsure about your classification or minimum wage rights, consult the California Department of Industrial Relations (https://www.dir.ca.gov/dlse/) for resources and clarification.
Looking ahead:
California's minimum wage is set to rise automatically each year based on the cost of living. It's important to stay informed about future adjustments.
Additional considerations:
Some California cities and counties have even higher minimum wage requirements than the state. Be sure to check your local regulations for the most up-to-date information.
There are some exceptions to minimum wage rules, such as for tipped employees and apprentices. Consult the CA Department of Industrial Relations for details.
By understanding these changes, California employers and employees can ensure they are following proper wage and classification practices.
Comentarios