Larger California Employers Must Pay Higher Minimum Wages and Salaries

Effective January 1, 2017

For companies with 26 or more on payroll, California Labor Code 1182.12 directs yet another statewide increase in minimum hourly wages, from $10 to $10.50/hour, starting January 1, 2017. Employers with 25 or fewer on payroll must comply with that increase one year later, on January 1, 2018. See, California’s Gradual Increases in Minimum Wage, to Reach $15.00 Per Hour by January 1, 2022 (April, 2016).

Many businesses are subject to yet higher minimum wage requirements imposed by various cities and counties around the state. See, Hot Off the Presses Minimum Wage Rates List Updated for 2017 (December, 2016).

This minimum wage increase also raises the minimum salary threshold for California’s exempt-from-overtime professional, administrative, and executive employees, calculated at two-times minimum wage for a 40 hour week. For businesses employing 26 or more, that minimum now increases from $800 weekly, $3,466.67 monthly and $41,600 yearly to $840/week, $3,640/month, and $43,680/year. See also, Be Prepared for Statewide and Local Minimum Wage Increases (November, 2015).

For further information, please contact one of our attorneys Tim Bowles, Cindy Bamforth or Helena Kobrin.

Helena Kobrin,

December 31, 2016