By: Roger M. Mason, Esq., Rachael E. Brown, Esq., Caitlin E. Kaufman, Esq.
In a recent DIR News Release, No. 2023-66, the Department of Industrial Relations reminded employers that California’s minimum wage will increase to $16.00 per hour effective January 1, 2024. This applies to all California employers regardless of the number of employees working for them.
It is important to note that this increase in the minimum wage also affects the salary employers must pay in order for an employee to qualify as exempt from payment of overtime. California law requires employees to earn a minimum of 2 times the state’s minimum wage for full-time work, i.e., 40 hours per week, to meet the minimum salary requirement. Effective January 1, 2024, exempt employees must earn a minimum annual salary of $66,560.00 ($1,280/week).
The increased minimum wage will require employers to post a new Minimum Wage Order, along with the Wage Order applicable to their workplace, in a location accessible to employees. The Wage Orders can be downloaded and printed from the Workplace Posting page on the DIR website.
Do not lose sight of the fact that many cities and counties in California have a local minimum wage that is higher than the state rate. In addition, fast food workers must receive $20.00 per hour effective April 1, 2024. Effective June 1, 2024, workers at covered health care facilities must receive from $18 to $21 per hour, depending on applicable wage schedules, and the minimum wage for these positions will continue to increase, with all healthcare facilities eventually reaching $25.00 per hour.
Now is a good time for employers to confirm that they are meeting the state and applicable municipal minimum wage requirements and that their exempt employees continue to meet the minimum salary threshold.
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For more information about any of these employment legal updates, please contact our employment team at 408-356-3000 or via email: Roger Mason at rmason@smllp.com, Rachael Brown at reb@smllp.com, or Caitlin Kaufman at ckaufman@smllp.com.
The information provided in this publication is general in nature and is not intended to answer every question that may arise under different fact situations and should not be relied on in the place of professional advice in a given case. If you have specific questions, please contact Sweeney Mason LLP.
SWEENEY MASON LLP is a Limited Liability Partnership located at 983 University Avenue, Suite 104C, Los Gatos, California, 95030, telephone (408) 356-3000. This notice is designed to assist our clients and other business owners in spotting issues which may result in costly litigation and court awarded damages if allowed to continue unaddressed.
SWEENEY MASON LLP’s philosophy is that by educating our clients, and other businesses, about their legal obligations, including changes in the law, we best serve our legal goal of minimizing or preventing expensive litigation.
Sweeney Mason LLP
983 University Ave, Suite 104C | Los Gatos, CA 95032 US
408.356.3000