California’s minimum increase once again. Effective January 1, 2025, all employers, regardless of size, must pay their employees at least $16.50 per hour.
Impact on Exempt Employees
With the minimum wage increase, exempt or salaried employees will also rise. The new minimum annual salary requirement will increase from $66,560 to $68,640. It is important to note that exempt employees must receive a fixed salary that is not based on the quantity or quality of work. meaning that commissions and bonuses cannot be included when calculating the required salary to meet the new salary requirements.
Local Minimum Wage Increases
Several California cities and counties have enacted minimum wage laws that exceed the state’s minimum wage, and many of those rates were increased effective January 1, 2025. Below is a list of affected jurisdictions and their updated hourly minimum wage rates:
If you operate in multiple cities should verify local ordinances to ensure compliance with all applicable wage laws, if this is confusing don’t hesitate to contact our office to help manage this. Staying informed and prepared for these changes is crucial to avoiding penalties and ensuring fair compensation for workers.Minimum Wage Rates: https://www.dir.ca.gov/dlse/faq_minimumwage.htm
