California minimum wage 2025 for exempt. 00 per hour on January 1, 2025.
California minimum wage 2025 for exempt. 13 (annually $118,657. Exempt employee minimum salary levels increase to $68,640 per year ($5,720 per month). Jun 28, 2025 · Minimum wage is increasing in several California cities starting July 1, 2025. 50 per hour, the required annual salary for the administrative exemption is $68,640. 50 per hour in 2025, with some local rates set even higher. 96 to $9,888. Aug 8, 2025 · The exempt salary threshold in California for 2025 is tied to the state minimum wage and must meet a specified annual minimum. Oct 29, 2024 · Effective January 1, 2025, the minimum hourly rate for computer software employees to meet this exemption will be $56. Mar 21, 2025 · In 2025, the threshold rises from $66,560 to $68,640 annually (equivalent to 2 times the minimum wage). 67 per month). Apr 1, 2024 · Beginning on January 1, 2025, the minimum salary for Exempt employees in California will increase to $68,640/year, or $1,320/week. Learn how this threshold is calculated, why local wages matter. Discover key compliance tips for employers, including fast food and exempt salary thresholds. Employers must follow updated wage requirements for hourly, exempt, tipped, fast-food, and healthcare workers across California. Jan 1, 2025 · California Hourly Minimum Wage and Exempt Salary Minimum: Effective January 1, 2025, the state minimum wage increased to $16. 58 to $56. 50 per hour, beginning January 1, 2025. See Commissioned Inside Sales Employee Exemption. 50 per hour *See Sec. 4 days ago · The minimum wage in California for 2025 is $16. With the increase in minimum wage comes an adjustment in overtime-exempt employee salary calculations. Dec 17, 2024 · Four new California laws businesses and workers should know about for 2025 Learn more about a change to California's minimum wage, crime victim leave, a ban on 'captive audience' meetings and Nov 12, 2024 · Many of those local ordinances are pegged to inflation and thus have their own automatic increases for 2025. 00 to $16. 50 per hour on Jan. To be considered "exempt," these employees must generally satisfy three tests: Salary-level test: Employers must Increased minimum wage Minimum wage will increase from US$16. Earlier this year, we reported on the minimum wage increase from $16. 50 per hour for most workers. 50 per hour, which will also impact the state’s other exemption thresholds. Nov 26, 2024 · In California, certain computer software employees and licensed physicians must be paid a statutorily specified rate to be deemed exempt from overtime regulations. D. 97 and the minimum monthly salary for the exemption from $9,646. For smaller employers (25 or fewer employees), the hourly minimum wage would Dec 27, 2024 · As is always the case, California’s increase in minimum wage also increases the minimum salary requirement for most white-collar exemptions (those for which the minimum salary is two times the minimum wage, e. But many cities set their minimum wage even higher. This law applies to all employers, regardless of size. 12 (c) mandates that the Director of Finance calculate an adjusted minimum wage on or before Aug. 50 across California, regardless of the employer’s size. May 15, 2025 · California minimum wage 2025 increases to $16. Feb 6, 2025 · The California minimum wage has now increased from $16 per hour to $16. San Diego’s minimum wage will also increase effective January 1, 2025 to $17. Jan 6, 2025 · Starting January 1, 2025, the minimum wage in California is set at $16. 13. Most employers know the salary basis test is tied to the state minimum wage, which in 2025 is $16. Pursuant to section 1182. This figure is calculated as twice the annual earnings of a full-time employee at the minimum wage rate, ensuring that exempt employees receive a salary that reflects their higher level of Jan 1, 2025 · As of January 1, 2025, exempt workers in California must be paid a salary that is at least twice the state’s minimum wage, currently $16. For hours worked on or after January 1, 2026, the new California minimum wage will be $16. 1, 2025, exempt employees in California must be paid a minimum annual salary of $68,640. , the administrative, executive, and professional exemptions). Feb 24, 2025 · As of January 1, 2025, California's state minimum wage increased to $16. This means that overtime pay (at time and a half) will be $24. Jan 14, 2025 · The minimum wage increases to $16. The adjustment is based on the Consumer Price Index (CPI), which saw a 3. At this time, it remains at $20 in 2025. 1 Dec 12, 2024 · Learn about California's 2025 minimum wage increase to $16. Apr 5, 2025 · 2025 Exempt Salary Threshold (California) To legally classify someone as exempt, their salary must be: At least 2x the CA minimum wage for full-time work. Apr 18, 2025 · The minimum wage in California (2025) is $16. May 28, 2024 · California’s exempt salary basis regularly rises with the State’s minimum wage. On July 1, numerous California cities and counties Nov 1, 2024 · New 2025 pay rates exempt computer software and medical professionals from overtime under CA law: $56. Aug 1, 2025 · The adjusted minimum wage increase takes effect on January 1 following the calculation. Certain exempt-level employees (administrative, executive, and professional) will also see an increase in the minimum annual salary threshold on January 1, 2025 – from $66,560. 3 days ago · California's 2025 exempt employee rules include new salary thresholds for fast food and healthcare workers under state wage laws. What type of workers are exempt from this measu Nov 4, 2024 · For example, the minimum wage in California will increase for most workers to $16. 7% to 49. 50 per hour on January 1, 2025, for all employers. Fast Food Restaurant employers, effective April 1, 2024, and Healthcare Facility employers, effective October 16, 2024 (see below), have a higher minimum wage. 97/hr for software roles, $103. From minimum wage increases and overtime exemption rates to groundbreaking protections for freelance workers and expanded anti-discrimination laws, these updates reflect state lawmakers’ commitment to strengthening workplace rights and Jan 27, 2025 · Starting January 1, 2025, the minimum wage will rise from $16. The Department of Industrial Relations does not monitor or verify this list but includes it here as a reference for the public: UC Berkeley Labor Center Inventory of US City and County Minimum Wage Ordinances December 2024 Aug 21, 2024 · Beginning January 1, 2025, the minimum salary for a full-time employee to qualify for the exemption from overtime will be $68,640 per year ($5,720 per month). Jan 2, 2025 · Effective January 1, 2025, the DIR adjusted the computer software professional’s minimum hourly pay rate to qualify for the exemption from $55. Jun 11, 2025 · Learn the 2025 minimum wage rates for California and Los Angeles, including city-specific increases, fast-food and healthcare industry wages. 00 per week, or $33,280. Exempt salaried employees may not be eligible for overtime. 50 for employers of all Jan 27, 2025 · A: In California, exempt employees must meet specific salary requirements to maintain their exemption status. For now, the hotel worker minimum wage in the City of Los Angeles is $21. Remember, minimum wages also impact exempt employee salary requirements. Nov 1, 2024 · In 2025, the minimum salary for exempt employees will be $68,640 annually (if the state’s minimum wage stays at $16. 90 per hour effective January 1, 2026, in accordance with applicable Labor Code requirements. The minimum earnings requirement for the inside salesperson exemption changed due to the higher 2025 state minimum wage. The Department’s regulations require executive, administrative, and professional (EAP) employees to be paid at least a minimum salary amount to be exempt from the Fair Labor Standards Act’s minimum wage and overtime requirements under section 13 (a) (1). CA Labor Code 1182. To calculate the salary basis in California, multiply the current minimum wage by two ($16 per hour for 2024, but watch the November ballot referendum to increase it to $18). This also means that as of Jan. The list does not include the city/county thresholds for California. The Department of Industrial Relations does not monitor or verify this list but includes it here as a reference for the public: UC Berkeley Labor Center Inventory of US City and County Minimum Wage Ordinances December 2024 Nov 20, 2024 · A variety of exempt and non-exempt minimum pay standards in California will increase on January 1, 2025. Nov 25, 2024 · The state’s minimum wage will increase on January 1, 2025. California Minimum Wage Increase 2025: New Rates for State, Fast Food, Healthcare, and Localities California’s 2025 minimum wage increase sets new statewide, fast food, healthcare, and local rates employers must comply with. 18% adjustment based on inflation. The term “software professionals” covers positions such as software Nov 14, 2024 · California’s minimum wage will rise to $16. 00 to US$16. As of Jan. A full time minimum wage worker in California working will earn $640. Dec 18, 2024 · On January 1, 2025, the California state minimum wage, excluding fast food industry employers and certain healthcare facilities, will increase from $16. In 2025, the statewide minimum wage is $16/hr, so the exempt minimum is: $66,560 per year (2 × $16/hr × 40 hrs/week × 52 weeks) Some cities (like SF, LA) have higher minimum wages — if applicable, that raises the local exempt salary Jan 23, 2025 · On January 1, 2025, the statewide minimum wage increased to $16. 18% increase over the past year. Minimum Wage Increase (Statewide & Local) Statewide minimum wage (2025): $16. Effective January 1, 2025, the minimum salary for a full-time exempt employee will increase to $68,640 per year or $5,720 per month. g. If your employer fails to comply, contact an Orange County wage and hour attorney to discuss your legal options today. Employers must update payrolls, post required notices, and adjust exempt employees' pay. May 7, 2025 · The minimum wage in California will rise to $16. 50 hourly in 2025, with some cities and industries requiring higher rates. The minimum exempt employee salary (for example: professional, administrative, executive exemptions Jan 25, 2024 · Posted by Giuliana Gabriel, J. California Labor Code Section 1182. The measure proposed increasing the hourly wage for non-exempt employees working for larger employers (26 or more employees) from $16 to $17 in 2024, with a further increase to $18 on January 1, 2025. AB 2499 – Victims of Violence Jun 5, 2025 · Semi-Annual Rates Update for Minimum Wage, Tips, and Exempt Pay Increases on July 1, 2025 (and Other Developments) Feb 5, 2025 · The increase in the minimum wage also affects the minimum salary requirements for full-time exempt employees in California. Employers must follow state, city, and industry-specific wage regulations carefully to remain compliant and avoid penalties. However, certain employees are exempt from this minimum wage requirement, including those who are classified as "salary exempt. For instance, the annual minimum salary for white-collar exemptions is set to increase to $68,640 in 2025. 50 per hour for all employers, regardless of employee headcount. 43+ to be exempt from paying OT. Beginning January 1, 2025, the minimum salary for exempt employees will be US$68,640 (US$5,720 per month). Be aware, that in addition to meeting the salary test, exempt employees must also meet the duties test to be exempt from overtime, meal and rest period requirements, and other wage and hour laws. The minimum wage will remain at $16. Correspondingly, the minimum salary threshold for exempt employees Feb 18, 2025 · Understand California’s exempt employee laws, including classification criteria, salary requirements, and key exemptions to ensure compliance. 00 per hour on January 1, 2025. For employers operating in 3 days ago · California has one of the highest minimum wages in the country, and in 2025 it will be set at $16. California's minimum wage rate as of f, 2025 is $16. 6 days ago · This increase to California’s minimum wage will result in a higher base salary requirement for employees deemed exempt under California’s professional, administrative, and executive exemptions. 67 Jan 1, 2025 · On January 1, 2025, the statewide minimum wage increased to $16. The California minimum wage in 2025 is $16. Aug 27, 2024 · As of January 1, 2025, California’s minimum wage will increase by 50 cents to $16. Companies must learn the rules pertaining to exempt and non-exempt employees to avoid penalties or lawsuits. Aug 22, 2024 · California minimum wage set to increase January 1, 2025, including salary for full-time exempt employees and ballot Proposition 32 based on Consumer Price Index CPI Jun 20, 2025 · Effective July 1, 2025, several California cities and counties will implement minimum wage increases, including industry-specific adjustments in certain jurisdictions. 49% increase from the current rate of $16. 25. Dec 30, 2024 · Minimum salary requirements for overtime exemption The federal Fair Labor Standards Act allows for exemptions from the federal overtime (and minimum wage) requirements for certain employees who work in administrative, professional and executive jobs (known as "exempt" employees). As a result of the new minimum wage, the state is increasing the minimum salary requirement for the executive and administrative exemptions to $1,237. With the change in the statewide minimum wage, the minimum exempt salary for California employees rose from $66,560 to May 23, 2025 · California Exempt Employee Salary Minimum (2025 Update) The minimum salary for exempt employees in California is tied to the state’s minimum wage. (This is calculated by taking two times the State minimum wage times 2080 hours in a year. In California, salaried employees can be classified as exempt or non-exempt . New increased minimum wage requirements will take effect on January * The UC Berkeley Labor Center keeps a detailed national list of local minimum wage ordinances. Employers should take note, however, that Proposition 32 is on the November 2024 ballot and is proposing a $2 increase to the state’s current minimum wage. Below, is a list of some of the local minimum wages increasing at the start of the year. 1 each year. The Department of Industrial Relations does not monitor or verify this list but includes it here as a reference for the public: UC Berkeley Labor Center Inventory of US City and County Minimum Wage Ordinances December 2024 In California, the minimum wage is set to increase to $15. May 23, 2025 · As of January 1, 2025, with California’s minimum wage at $16. Note that both the fast food worker and health care worker minimum wage schedules also include a change to the salary threshold for classifying those workers as exempt. 50. ). 50 per hour on January 1, 2025. Jan 23, 2025 · On January 1, 2025, the statewide minimum wage increased to $16. Dec 18, 2024 · Explore the minimum salary requirements for exempt employees in 2025 across each state, providing essential insights for HR professionals and businesses. 50 per hour, but it may vary depending on your industry, city or type of employment This is the minimum wage in California for different sectors. New laws also impact sick leave, union exemptions, captive audience meetings, and driver’s license requirements for job postings. Dec 1, 2024 · California’s minimum wage for non-exempt employees will increase to $16. In 2025, the statewide minimum wage is $16/hr, so the exempt minimum is: $66,560 per year (2 × $16/hr × 40 hrs/week × 52 weeks) Some cities (like SF, LA) have higher minimum wages — if applicable, that raises the local exempt salary Jan 1, 2025 · Posted by Virginia Young, J. This increase will also raise the minimum salary requirements for full-time exempt employees. These mid-year changes may impact payroll and classification practices, especially for companies with a multi-jurisdictional workforce. 50 per hour Jul 1, 2025 · As July 1 approaches, employers should prepare for a new round of updates to minimum wage rates and, in some jurisdictions, salary thresholds for exempt employees. 2 below Effective January 1, 2024, Minimum Wage: $16. Double the minimum wage for exempt employees applies to the state minimum wage, not local minimum wage ordinances mentioned above. According to California’s Labor Code, beginning on January 1, 2023, for employers with 26 or more employees and January 1, 2024, for employers with 25 or fewer employees, California will increase its minimum wage by the lesser of: Aug 7, 2025 · The California minimum wage increase will also affect the minimum salary threshold for salaried exempt employees, raising their rates to $70,304 per year ($5,858. Employers must post the Minimum Wage Order and the Wage Order applicable to their workplace at a worksite area accessible to employees. 1, 2025, the California state minimum wage will increase to $16. 50 an hour for all employers on Jan. Jun 3, 2025 · The California minimum wage increased on January 1, 2025 and the minimum wage rate in many Cities and Counties will increase on July 1, 2025. 50 per hour in California. The State’s minimum wage is increasing to $16. 00 per hour. California’s Fast Food Council is currently assessing whether to mandate an additional increase of 70 cents to the fast food worker minimum wage in the upcoming months. 50 per hour starting January 1, reflecting a 3. Jan 6, 2025 · California's minimum wage in 2025 increased to $16. 90/hour, with higher rates for fast-food and certain municipal and healthcare workers Aug 22, 2024 · California will see another increase to its minimum wage on January 1, 2025. The new minimum annual salary for exempt employees will be $70,304 effective January 1, 2026. This increase applies to all employers, regardless of size. Minimum Exemption Salary Thresholds by StateMinimum Exemption Salary Thresholds by State 2025 Exempt Salary Threshold (California) To legally classify someone as exempt, their salary must be: At least 2x the CA minimum wage for full-time work. Click here or more information. EFLL breaks it down. 50 per hour for all employers, regardless of size, starting January 1, 2025. 50 for all employers regardless of size, effective January 1, 2025. California’s Department of Finance certified a minimum wage increase from $16 per hour to $16. * That means the exempt employee salaries will need to meet the minimum salary increase to $68,640/year. State law requires that most California workers be paid the minimum wage. 75/hour. Jun 28, 2025 · California’s minimum salary for exempt employees in 2025 is $68,640 per year. Nov 14, 2024 · Minimum Wage Increase SB 3: California Minimum Wage. Remember, the salary for exempt employees must be a fixed amount, not subject to variation based on the quantity or the quality of the work. January 01, 2025 marks a new year, and another update in minimum wages for California. Jan 1, 2025 · With the new year comes a variety of new employment laws in California, introducing changes that impact employers and employees across various sectors. Dec 13, 2024 · Proposition 32, which aimed to raise California’s minimum wage, was defeated by a slim margin of 50. 22 per hour for hotel employees. Dec 17, 2024 · As of January 1, 2025, employees in California must earn an annual salary of no less than $68,640 to meet this threshold requirement. This article will inform you of the critical Jun 26, 2025 · Summer is in full swing and California employers should be aware of several July 1 local area minimum wage increases, as well as minimum wage requirements in the healthcare industry. Minimum Wage: California’s state minimum wage increases to $16. 87. 00 to $68,640. Minimum Wage increase announced for 2026 in California. With the change in the statewide minimum wage, the minimum exempt salary for California employees rose from $66,560 to Nov 25, 2024 · California employers should also take note that the increase in the California state minimum wage to $16. 50 cents to $16. 00 per year. Nov 20, 2024 · The minimum salary that must be paid to a properly classified exempt employee (must meet the salary test AND the duties test) must be equal to two times the current minimum wage or $68,640 again, effective January 1, 2025. Improper exemption may result in unpaid overtime, penalties, legal costs, and the need to show correct employee status. The Department will update this notice with additional information as it becomes available. 12; California Department of Industrial Relations. 50 statewide. 50/hour statewide. Jan 1, 2025 · California continues to lead the nation in changes to its minimum wage. When employers are paying overtime at time and a half, this… Jul 1, 2025 · Since April 1, 2024, minimum wage for certain fast food employees in California, as per AB 1228 and AB 610, is $20. 50/hour. Feb 28, 2025 · To ensure compliance with California’s minimum wage rules, employers should make any necessary wage or salary increases effective January 1. An increase in minimum wage will shift the minimum salary test for the primary overtime exemptions (administrative, executive, and professional), based upon the increased amount. 1, 2025. , discrimination based on any combination of protected classifications). 50/hour for all employers. 00 (or $5,546. 1. California labor laws include a higher minimum salary than the federal standard. 43). Jul 6, 2025 · California Minimum Wage 2025: Detailed Breakdown and Rates California’s minimum wage increases to $16. Jul 1, 2025 · July 1 is just around the corner, and with it comes a series of local minimum wage increases across Southern California. Since this increase went into effect on January 1, 2025, the minimum wage across industries, cities, and counties continues to evolve. Additionally, the minimum salary for full-time exempt employees increases to $68,640 per year in 2025. The list includes some special districts in states but does not include all of said districts. Dec 19, 2024 · This increase to the California minimum wage results in an increase to the minimum annual salary that employers must pay exempt employees in 2025 in order to continue to properly classify them as exempt. 00 per hour through December 31, 2024. Jan 1, 2025 · At a Glance Highlights notable rate-related developments in the first half of 2025 Identifies minimum wage rate increases for non-exempt (including tipped) employees Lists increases to exempt employee pay resulting from minimum wage increases When calculating the wages exempt from garnishment for a health care worker covered by the new law, the party seeking to garnish the wages must use the applicable health care worker minimum hourly wage unless a higher, local minimum hourly wage exists. In addition, the minimum wage will increase on January 1, 2025, for several municipalities. Workers paid less than the minimum wage are urged to contact the Labor Commissioner’s Office in their area to file a wage claim. Nov 12, 2024 · As 2024 winds down, here are 10 new laws California employers should watch out for in 2025. Detailed tests determine exemption status based on duties, salary structure, and consistent application of independent judgment. 1, 2025, for employers of every size due to inflation. With the state’s minimum wage increasing in 2025, the minimum salary threshold for exempt employees will also rise. e. 90/hour, a 2. This determination will apply to most California employers regardless of size, that don’t have special wages for their industry or localities. 50 per hour for all employees, with some limited exceptions. 00 per hour for all employers, regardless of size, starting January 1, 2024. Given the rise in hybrid work, employers should carefully review each applicable jurisdiction in which their * The UC Berkeley Labor Center keeps a detailed national list of local minimum wage ordinances. Similarly, under Labor Code section 515. Key Changes to California Minimum Wage Laws Some cities in California will have even higher minimum wages than the state Jan 5, 2025 · By Tiffany January 5, 2025 2025 California minimum salary exempt regulations present a complex landscape for employers. Learn the new local rates, how it affects salaried employees, and what to do if your employer isn’t paying you fairly. 50 per week on January 1, 2025 in New York City and Nassau, Suffolk, and Westchester counties. Prepare for the changes with tips for employers and employees. . 00 per hour to $16. The wage increases also apply to full-time exempt employees, whose Dec 12, 2024 · Since the threshold is set at two times the statewide minimum wage, employers will need to ensure all exempt employees earn at least $68,640 annually in 2025. Jan 1, 2025 · This increase to the California minimum wage results in an increase to the minimum annual salary that employers must pay exempt employees in 2025 in order to continue to properly classify them as exempt. Jan 9, 2025 · 2025 Minimum Wage Increases and Its Effect on Exemption Classifications Starting January 1, 2025, California’s minimum wage will increase by . Dec 27, 2024 · The following is a comprehensive list of the 2025 exempt status salary threshold by state. 50 per hour. California law requires exempt employees to meet both a salary basis test and a duties test. For 2025, the minimum salary threshold for exempt employees is $68,640 annually for employers with 26 or more employees and $64,480 for employers with 25 or fewer employees. , HR Compliance Director on Tags: Your hourly workers just got an increase, but what about your salaried managers? The minimum wage for non-exempt employees increased to $16. 8% to account for an inflation adjustment effective at the Dec 17, 2024 · Minimum Wage Increases. Exempt Software Professionals In order to treat software professionals as exempt from overtime, California employers generally need to meet the requirements of the “computer software professional” exemption. Jul 1, 2024 · UPDATE: 1) A group of business organizations has filed a petition with the Missouri Supreme Court challenging the validity of Proposition A, a November 2024 ballot measure that increases the minimum wage effective January 1, 2025; 2) Santa Rosa, California announced its 2025 minimum wage will be $17. With the change in the statewide minimum wage, the minimum exempt salary Sep 4, 2024 · The Director of California's Department of Finance published a letter on August 1 stating that the minimum wage needed to rise by 3. This article outlines the key changes taking effect on July 1, reviews important updates already Jan 23, 2025 · On January 1, 2025, the statewide minimum wage increased to $16. Here is everything you need to know about the new minimum wage rates in 2025. 5 provides that certain computer software employees are exempt from the overtime requirements stipulated in Labor Code Section 510 if certain criteria are met. Office of the Director Overtime Exemption for Computer Software Employees Effective January 1, 2025 California Labor Code Section 515. 50 per hour for non-exempt employees, regardless of size (several local governments have higher minimum wages); the minimum salary for exempt employees increases to $68,640 per year. California’s minimum wage will be increasing in 2026. 50 per hour starting January 1 st). Under state law, exempt employees must earn at least twice the state minimum wage, in addition to meeting other duties related requirements. On August 2025, the California Department of Finance provided updated figures regarding the upcoming adjustment to the minimum wage in California. This new rate applies to all employers, regardless of size. California employers must meet 2025 exempt salary thresholds, job duty standards, and classification rules to prevent misclassification issues. Nov 14, 2024 · The minimum annual salary for exempt employees will increase effective January 1, 2025, from $66,560 to $68, 640 (not including commissions, bonuses or other types of incentives). The minimum wage in California increases to $16. California Minimum Wage 2025 The California minimum wage, effective January 1, 2025, is $16. 6 days ago · California’s Director of Finance has certified that the Golden State’s minimum wage will increase to $16. 00 per hour Effective January 1, 2023, Minimum Wage: $15. 50 per hour, regardless of the size of the employer [source]. Dec 5, 2024 · As a reminder, the California state minimum wage rate — not the local minimum wage rate — is used to determine the salary threshold for administrative, executive and professional exemptions. Jun 12, 2025 · UPDATE: The City of Los Angeles hotel and airport minimum wage increase, and other changes identified below, are currently on hold following a referendum petition filed with the City of Los Angeles on June 27, 2025. 50/hour, which means the minimum exempt salary will increase to $68,640 annually. 50 per hour for all employers, regardless of company size. Dec 18, 2024 · On January 1, 2025, the California state minimum wage will increase by 50 cents, bringing it to $16. 50 per hour regardless of the number of employees working for the employer. 5 days ago · Effective January 1, 2026, California’s minimum wage increases to $16. With the change in the statewide minimum wage, the minimum exempt salary… Aug 7, 2025 · Discover the criteria for classifying exempt employees in California, including the required minimum salary and other legal tests. , the professional, administrative, and executive exemptions). 6, certain licensed physicians and surgeons must be paid a minimum hourly rate. This applies to administrative, executive, and professional employees classified as exempt. What is the minimum wage for 2025 and how does that impact my exempt salaried employees? Answer As of January 1, 2025, California employers must pay their computer professional employees with an annual salary of $118,657. Workers should verify applicable wages to ensure compliance with state, local, and industry regulations. 75/hr for physicians Oct 15, 2024 · [1] It should also be noted that many state and local laws, including California law, will be increasing the minimum wage for all employees in 2025. California Minimum Wage MW-2025 Every employer, regardless of the number of employees, shall pay to each employee wages not less than the following: Effective January 1, 2025, Minimum Wage: $16. Sep 5, 2024 · Employers should also keep in mind that this increase will also affect the minimum salary requirements for full-time exempt employees (currently $66,560 per year or $5,546. , HR Compliance Director on Tags: Happy New Year! Many hourly and even some salaried employees are celebrating the new 2025 minimum wage increases occurring across California, which went into effect on January 1, 2025. Aug 2, 2025 · California’s 2025 exempt salary threshold increases to $68,640 annually, with minimum wage rising to $16. Jan 2, 2025 · Question: As a business owner, I normally update my staff hourly wages and salaries each January. 12, the minimum wage was increased to $16. * The UC Berkeley Labor Center keeps a detailed national list of local minimum wage ordinances. The Salary Basis Test: The employee earns a fixed salary that is at least twice the state minimum wage for full-time work (40 hours/week, 52 weeks/year). In exchange for being relieved of its overtime obligation, the employer guarantees a fixed and regular sum to an exempt employee. Dec 27, 2024 · On January 1, 2025, California’s state minimum wage will increase to $16. Dec 2, 2024 · Of course, because the minimum wage is increasing, the minimum salary for “white collar” exempt employees will go up from $66,560 per year to $68,640 per year. 97, with a minimum monthly salary of $9,888. Labor Commissioner's Office Minimum Wage Frequently Asked Questions Minimum Wage Frequently Asked Questions * The UC Berkeley Labor Center keeps a detailed national list of local minimum wage ordinances. As previously described, California voters rejected Proposition 32, a stair-step-increased minimum wage initiative. Here are three key things to know about salaries under California employment law : California employers must pay salaried employees at least twice the minimum hourly wage based on a 40-hour workweek. 50/hour, meaning the minimum exempt salary is $68,640/year. The minimum wage in California will increase from $16. Looking ahead, CalChamber-opposed Proposition 32 is on the November 2024 ballot, and if passed by California voters, would further accelerate the pace of minimum wage increases whether or not a California business is located in a high-cost region. 01, effective July 1, 2025. Nov 27, 2024 · Despite Proposition 32’s failure, California’s minimum wage will still increase on January 1, 2025 to $16. 1 California’s 2025 minimum wage law raises hourly rates statewide, while many cities and industries apply separate local pay rules. Employers with questions regarding the minimum wage increase or its impact on exempt employees should consult with their employment counsel. This analysis explores the projected minimum wage increase, its impact on both exempt and non-exempt employees, and the potential legal ramifications for businesses. SB 1137 – Intersectionality SB 1137 amends FEHA to address claims based on any combination of protected characteristics, or “intersectionality” (i. This has increased compared to the 2024 minimum wage of $16. 50/hour for all hourly employees. 3%. California will increase the state minimum wage to $16. California employers are urged to audit their payroll to ensure they comply with all the new local and statewide minimum wage requirements for their industries and locations. Generally, exempt employees must earn a monthly salary equivalent to no less than two times the state minimum wage for full-time employment. 00/hour This also means the minimum salary to classify someone as exempt is now: $66,560/year (2x $16 × 40 hrs/week × 52 weeks) Local Minimum Wages: Cities like San Francisco, Los Angeles, San Jose, and Berkeley have higher minimum wages, some exceeding $18/hour 4 days ago · As a reminder, to meet the “salary test” for exempt employees, their salary must be increased to at least twice the state minimum wage, exclusive of bonuses, commissions, or other additional compensation. 50 per hour for all employers. Be sure your employees are getting the correct minimum wage by double checking exactly where remote… Jun 27, 2025 · West Hollywood: $20. Sep 6, 2024 · Prepare for California’s 2025 minimum wage increase and understand its broader implications, including city-specific rates and potential future changes. Nov 11, 2024 · 10 California employment law changes to know about for 2025 The Golden State has made changes to requirements for wages, sick leave and captive audience meetings. 21 hours ago · Increases in the state minimum wage directly raise the salary threshold for white-collar exemptions, making more employees eligible for overtime. Exempt and industry-specific employees face new salary thresholds, impacting wage standards across sectors and jurisdictions. The change in the minimum wage also affects the minimum salary an employee must earn to meet one part of the overtime exemption test. 50 per hour in 2025 will result in a higher base salary requirement for employees deemed exempt under the so-called “white collar” exemptions (i. Non-exempt salaried employees are eligible for overtime. The minimum wage in California, effective January 1, 2025, is $16. The change is part of an annual process tied to Aug 7, 2024 · Starting January 1, 2025, California’s statewide minimum wage is $16. " Nov 12, 2024 · California employers are urged to audit their payroll to ensure they comply with all the new local and statewide minimum wage requirements for their industries and locations. icampstakoiikdhhljiabjdfhrdpmvodzizqpojemppubvjesbei