As of New Year’s Day, the minimum wage employers must pay California employees once again jumps up, with ramifications beyond simply paying at least the new minimum rate.
The New Minimum Wage Figures
As of January 1, 2022, the minimum wage employers with 26 or more employees must pay California employees ratchets up from $14 per hour to $15 per hour. Also, effective January 1, employers with 25 or fewer employees must pay at least $14 per hour, an increase from $13 per hour.
This round of wage hikes, taking larger employers (26 or more employees) to California’s goal of $15 per hour, is the last increase for larger employers set by state law at the present time. Smaller employers are in for one more hike on January 1, 2023, when the minimum they must pay will increase to $15 per hour.
The Minimum Salary for Exempt Status Climbs, as Well
With the coming minimum wage hikes, the minimum salary for exempt status under state law, likewise, increases. As of January 1, 2022, the minimum monthly salary larger employers must pay employees in order to classify them as exempt under the executive, administrative or professional exemptions increases to $5,200 per month or $62,400 per year. Simultaneously, smaller employers will be required to pay a minimum of $4,853.33 per month or $58,240 annually in order to classify an employee as exempt.
Where, after December 31, 2021, an employer continues to classify an employee as exempt who is not paid at least the new minimum salary for...
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