While COVID-19 dominates headlines as the calendar turns to a new year, many of California's new 2022 employment laws pertain to more traditional issues. We wrote about some in our recent alert. Here are three "B-sides" that didn't make our top list but are still significant. All are effective as of January 1, 2022.
California Has the Highest Statewide Minimum Wage in the Nation: $15/Hour
As of January 1, 2022, California's minimum wage applicable to employers with 26 or more employees is $15/hour. This follows five years of gradual step-ups toward the $15 target. Employers with 25 or fewer employees are subject to a $14/hour minimum wage (and will be subject to the $15/hour minimum wage in 2023).
California's $15/hour minimum wage also impacts the threshold minimum salary that must be paid to employees to qualify as exempt from overtime rules under the executive, administrative, or professional overtime exemptions. That minimum threshold is tied to 2 times the state minimum wage for full-time employment. As of January 1, 2022, the minimum exempt salary thresholds are:
Employers with 26 or more employees: $62,240/year
Employers with 25 or fewer employees: $58,240/year
In other words, employees whose salaries are below those new applicable thresholds can no longer qualify as exempt from overtime rules, regardless of whether their duties otherwise qualify as exempt.
Note: Some localities had already raised minimum wages to $15/hour (Los Angeles, for example); and San...
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