What California’s minimum wage increase means to you


California now holds the title for the state with the highest minimum wage in the country.

Effective July 1, 2015, employers were required to pay employees at least $9/hr. Effective January 1, 2016, it increased again to $10/hr. This means several important things for you as business owners and managers, including but not limited to:

  • Evaluate your current salary structure to determine how the increase will affect pay ranges for all positions.
  • Exempt commission salespeople need to earn at least $15.00/hr. under wage order 4 and 7.
  • White collar overtime exemption requires a minimum monthly salary of $3,466.67 (based on a 40-hour work week).

We recommend taking several steps to ensure compliance with the new law including assessing your wage, employee classification and timekeeping practices.

Remember: As a valued HR Business Partner, we are here to assist!