REMINDER TO ALL CALIFORNIA EMPLOYERS: MINIMUM WAGE INCREASE EFFECTIVE JANUARY 1, 2024

The current minimum wage rate for all employers (including both employers with 25 or fewer employees and those with 26 or more employees) is $15.50. As a result of this inflation-related minimum wage increase, the minimum wage rate for all employers with California employees will increase from $15.50 to $16.

The California white collar exemption minimum annual salary will increase to $66,560, increasing from $64,480 per year. Employers will want to audit employees classified under one of these exemptions to determine whether both the duties and salary satisfy the exemption’s requirements.

Please do not forget that employers will need to adjust their split-shift premium calculations since they will be impacted by the increased minimum wage. The same is true for rates of pay for meal period premiums, rest period premiums, paid sick leave, and other related items.