June 5, 2014
Effective July 1, 2014, the minimum wage in California will increase from $8.00 to $9.00 per hour. On January 1, 2016, the minimum wage will increase again to $10.00 per hour. New wage requirements mean that employers must adjust payroll systems to ensure that hourly and overtime rates increase accordingly.
The California minimum wage increase is especially important for salaried employees. To remain properly classified as exempt, full-time salaried employees must make at least two times the California minimum wage, which will be $37,440 per year beginning July 1, 2014.
San Francisco and San Jose employers will not be impacted by the state increase because they have already been complying with higher minimum wages in their respective cities as of January 1, 2014. The current minimum wage in San Francisco is $10.74 per hour. In San Jose, the current minimum wage is $10.15 per hour.
All employers must also ensure that their workplace has up-to-date California and San Francisco workplace posting notices, which can be found at the links below.
In taking each of these steps, employers can limit the risk of a wage or hour claim being brought against them by an employee. For an assessment of whether your wage policies and practices are compliant with the minimum wage increase, please contact us at firstname.lastname@example.org or reach out to your Mitzel Group, LLP attorney directly.