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California?s Minimum Wage Increases on Jan. 1

Posted by: Gail Cecchettini Whaley, Esq. on Wednesday, December 19, 2018 at 12:00:00 am

The Department of Industrial Relations has issued a notice reminding employers of the upcoming minimum wage increases.

Under legislation to increase the minimum wage to $15 per hour over a set period of time, California’s minimum wage will increase on January 1 to $12 per hour for employers with 26 employees or more and to $11 per hour for employers with 25 or fewer employees.

State law requires that most California workers be paid the minimum wage. Some cities and counties have a local minimum wage that is higher than the state rate. For more information on local minimum wage rates see CEA’s Minimum Wage and Paid Sick Leave Fact Sheet.

Don’t forget that the minimum wage rate will also affect your pay scale for exempt employees. The administrative, professional, and executive exemptions require the worker to earn 2 times the state minimum wage for full-time employment in order to be classified as exempt (plus meet a strict duties test).

For 2019, this means that a worker will need to earn at least $49,920 to be exempt if there are 26 or more employees and at least $45,760 to be exempt if there are 25 or fewer employees. For more information, see CEA’s 2019 Minimum Salary and Minimum Wage (State) Fact Sheet.

Finally, California employers must post information on wages, hours, and working conditions at a worksite area accessible to employees.

Let California Employers Association help you. CEA’s all-in-one poster provides the newest laws required by California, Federal, and OSHA regulations to meet business requirements to protect employers from posting fines and employee disputes—including the new California minimum wage order and mandatory DFEH poster update.

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