Labor & Employment Law Blog

This announcement followed the completion of an annual review by the state’s Department of Finance in order to determine the new minimum wage in accordance with California Labor Code requirements. 

California employers should also take note that the increase in the California state minimum wage to $16.50 per hour in 2025 will result in a higher base salary requirement for employees deemed exempt under the so-called “white collar” exemptions (i.e., the professional, administrative, and executive exemptions). In order to be considered exempt, among other requirements, such employees must be paid a fixed salary equivalent to no less than two times the state minimum wage for full-time employment, which cannot be pro-rated for part-time work.  For 2025, this salary requirement will increase to a monthly salary of $5,720 (or an annualized salary of $68,640). 

California’s current statewide minimum wage is $16 for all employers.  However, numerous cities and counties have enacted local minimum wage requirements that surpass the state minimum. Employers must be sure to pay non-exempt employees the higher wage as between any applicable local minimum wage ordinance and state law. Our prior blog post discusses resources for employers to keep track of and confirm their state and local minimum wage requirements. 

Although a recent ballot proposition (Prop 32) sought to increase the California minimum beyond $16.50 per hour, the ballot proposition did not pass. 

Employers with questions regarding the state or local minimum wage laws may contact the author of this post or their usual employment law counsel at AALRR.

This AALRR publication is intended for informational purposes only and should not be relied upon in reaching a conclusion in a particular area of law. Applicability of the legal principles discussed may differ substantially in individual situations. Receipt of this or any other AALRR publication does not create an attorney-client relationship. The Firm is not responsible for inadvertent errors that may occur in the publishing process.

© 2024 Atkinson, Andelson, Loya, Ruud & Romo