The minimum wage and exempt salary levels are increasing for CA employers. Effective January 1, 2020, the new CA minimum wage for small employers (25 employees or less) is $12 per hour and for large employers (26 employees or more) the new wage is $13 per hour.
Many cities including Los Angeles, San Diego and San Francisco have enacted higher minimum wages and employers must pay their employees the highest applicable wage rate.
The minimum salary level for exempt employees is also increasing. In CA exempt employees must be paid the equivalent of two times the state minimum wage. Small employers (25 or fewer employees) must pay a salary of at least $49,920 annually while large employers (26 or more employees) must pay a salary of $54,080 annually.
Next Steps:
Employers must increase pay according to the new rates.
Check to see if any higher city wage rates apply to your business based on location.
Order new labor posters for 2020 and post in a conspicuous area where all employees can see – if you have multiple locations you are required to post in all locations.
Artemiste Consulting offers a wide range of Human Resources services to help your business needs. We understand the challenges employers are facing and will work with you to ensure you have the best guidance and tools available. Contact us today for a complimentary consultation
Aisling Byrne, SHRM-SCP, CEBS, CMS is the CHRO at Artemiste Consulting where creating great places to work is our passion. Ms. Byrne is a frequent contributor to the Artemiste blog on many topics including onboarding, talent development, performance management, compensation planning, employee engagement, total rewards and learning and development.