In the spirit of the season, we are using our annual "12 days of the holidays" blog series to address new California laws and their impact on California employers. On this twelfth day of the holidays, my labor and employment attorney gave to me: twelve drummers drumming and an update on minimum wage laws for 2023 and SB 1477.
In 2016, California enacted set annual increases for minimum wage for non-exempt employees. As of January 1, 2023, the minimum wage for all employers in the state of California will be $15.50. This rate applies regardless of how many employees an employer has on its books. It is imperative that minimum wage rates are updated to avoid any wage and hour issues and/or lawsuits. However, every employer needs to verify if they have any city or county regulations that create an even higher minimum wage. If that is the case, the employer must pay the highest minimum wage for that area. Visit the UC Berkeley Labor Center website to verify.
In order to qualify as an exempt employee, California law requires that the individual perform duties associated with a position that qualifies for an exemption (e.g., executive, administrative or professional exemptions) more than 50 percent of their work time, and earn a salary of no less than two times the state minimum wage for full-time employment. The minimum annual salary is based on the current state (not local) minimum wage, calculated as follows: (minimum wage x 2) x 2,080 hours. As such, effective as of January...
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