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.1 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.2 Posters setting forth the incremental minimum wage increases can be found on the County of Los Angeles Consumer & Business Affairs website. 3
If you believe you are being paid less that the statutory minimum wages, please contact our office for a free consultation.