Last week, the California legislature passed a bill (AB 10) that will increase the minimum wage in California to $9.00 per hour effective July 1, 2014, and to $10.00 per hour effective January 1, 2016. Before the bill was passed, Governor Jerry Brown had indicated that he would sign it. The minimum wage in California is currently $8.00 per hour.
If signed into law, the increase will also affect the minimum salary requirement for exempt employees in California. Employers must pay exempt employees a monthly salary of at least two times the state minimum wage. Currently, employers must pay $2773.33 per month. With the 2014 increase, the monthly salary would increase to $3,120 and in January 2016 to $3,466.67.
The minimum wage rate in San Francisco increased to $10.55 per hour in January of this year, and the minimum wage rate in San Jose increased to $10.00 in March.
For more information on this topic and other employment law news for California, visit California Employer Advisor Online.