Governor Jerry Brown recently signed into law a bill that will
increase California's minimum wage in two phases. Beginning
July 1, 2014, the minimum wage for California employees will rise
from the current $8 per hour to $9 per hour. On January 1, 2016,
the minimum wage will increase to $10 per hour.
These increases in the minimum wage will impact whether
employees will qualify for one of the "white collar"
overtime exemptions (executive, administrative, or professional)
under California law. One criterion for these exemptions is
that the employee receive a monthly salary that is no less than two
times the California minimum wage for full-time employment (40
hours per week). The current minimum salary is $33,280.
Starting in July 2014, exempt employees will have to be paid an
annual salary of at least $37,440 ($18 per hour), and by 2016 at
least $41,600 ($20 per hour).
