2021 California State Minimum Wage Law. Individuals in these classifications must be paid at least two times the state minimum wage, in addition to meeting all other legal requirements for this exemption. California's stair-step climb to a $15 minimum wage continues. Minimum wage is a guaranteed minimum amount that all California non-exempt employees are entitled to receive for every hour of work. This was an anticipated step. On January 1, 2023, the minimum wage will increase to $15 per hour. 2021 is nearly here and New York State has once again increased the minimum wage and the overtime exempt salary threshold effective December 31, 2020. For large businesses (51 or more employees), an exempt employee must earn a salary of at least 1.75 times the minimum wage, or $49,831.60/year. Labor Commissioner's Office; New Minimum Wage Phase in Requirement 2017-2023 SB 3 Frequently Asked Questions The following Frequently Asked Questions guidance is meant to address specific questions relating to SB 3 (Leno, Chapter 4, Statutes of 2016) and how the phase-in of minimum wage rates will apply. Exempt Employee Minimum Salaries and Wages The minimum salary threshold for exempt employees will increase to $1,120 per week ($58,240 per year) for employers with 26 or more employees, and $1,040 per week ($54,080 per year) for employees with 25 or fewer employees. On January 1, 2021, exempt employees of employers with 26 or more employees must earn at least $58,240 per year and exempt employees of employers with fewer than 26 employees must earn at least $54,080. Employers need to review the base salary for all exempt employees to ensure the employees meet the salary required to be exempt. Effective Jan. 1, 2021, the minimum wage for employers with 25 employees or less will increase to $13.00 per hour, and for employers with 26 or more employees, the minimum wage will increase to $14.00 per hour. In 2021, this will be set at $15.24. The exempt salary test is calculated using the current California minimum wage, even if an employer’s nonexempt employees may be entitled to receive a higher minimum wage under a local ordinance. Employers must pay their employees California overtime and California minimum wage> unless an employee is “exempt” under California’s employee exemptions. Simply paying an employee a salary does not make them exempt, nor does it change any requirements for compliance with wage and hour laws. In 2021, twenty-six cities and counties will have higher minimum wage rates than the state requires. […] Employers with 26 employees or more must pay their workers at least $14.00 per hour. When the minimum wage goes up statewide, so does the exempt salary threshold. A common way that employers avoid paying minimum wage is requiring California employees to work off-the-clock. California employers should take note of the following changes to state and local minimum wage laws—set to take effect on January 1, 2021—that will impact both nonexempt and exempt employees. Because most exempt employees in California must make at least twice the minimum wage on an annual basis, the current minimum salary for exempt employees who work for employers having more than 25 employees will increase from $41,600 to $43,680 effective January 1, 2017. 5. California employers should take note of the following changes to state and local minimum wage laws—set to take effect on January 1, 2021—that will impact both nonexempt and exempt … The salary test is not affected, however, by any applicable local minimum wage. The minimum wage rate is the lowest hourly pay that can be awarded to workers, also known as a pay floor. § 541.604(a) (2019). In California, exempt employees must receive a salary of at least twice the state minimum wage for a 40-hour workweek, in addition to meeting the general duties and other requirements. Effective January 1, 2021, employers must pay their exempt California computer professional employees a salary of at least $1,902.08 per week/$98,907.70 annually or an hourly wage of at least $47.48 per hour. We’re betting, however, that many employers haven’t considered the full scope of the impact on their businesses, including compliance areas. The first deadline is March 31, 2021. Currently, minimum wage in California depends on the size of your employer. On January 1, 2022, the minimum wage will increase to $14 per hour. Administrative exempt employees must also earn a salary of more than $54,080 a year, as of 2020. Minimum Wage Increase. If you have salaried workers, you may be impacted by the change, which raised the overtime salary threshold to $684 a week, or $35,568 per year.. Here’s an in-depth look at the new overtime rule for 2020, and a few steps on how to adapt. On January 1, 2021, the minimum wage will increase to $13 per hour. As a reminder, the minimum wage in California is increasing to $14.00 per hour on January 1, 2021, for employers with 26 or more employees based on previous legislation signed by Governor Brown in 2015. Overtime . For additional information about general questions regarding the Minimum Wage … California Minimum Wage is Going Up—And There’s More The passage of Senate Bill 3 (SB3), which introduced a step-based minimum wage in California, means another minimum wage increase in 2021. Review the base salary for all exempt employees to ensure the employees meet the salary test is not,... Paid by the employer very large businesses with 100+ employees on January 1 California’s! 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