In 2016, California enacted SB 3, authorizing annual minimum wage increases until it reaches $15.00, and identifying a two-tiered schedule for the effective dates of these increases depending on whether the employer has more than 25 employees.[note] California Labor Code 1182.12(1)(B), (2)(A) [/note] As minimum wage increases, so does the employees regular rate for purposes of calculating time and a half pay for overtime compensation.
On January 1, 2020, the minimum wage for employers with 26 or more employees will increase to $13.00 per hour, meaning the salary threshold for exemption purposes will be $49,970 annually. On January 1, 2020, the minimum wage for employers with 25 or fewer employees will increase to $12.00 per hour, and the salary threshold exemption for those employers will be $45,760 annually.[note] California Labor Code 1182.12(1)(B), (2)(A) [/note] Posters setting forth the incremental minimum wage increases can be found on the County of Los Angeles Consumer & Business Affairs website. [note] Los Angeles Consumer & Business Affairs [/note]
If you believe you are being paid less that the statutory minimum wages, please contact our office for a free consultation.
