On January 1, 2017, the California minimum wage for employers with 26 or more employees will increase from $10.00 to $10.50 per hour.
During 2017 the minimum wage for employers with 25 or fewer employees will remain $10.00 per hour.
On January 1, 2017, the minimum salary for exempt employees who work for employers with 26 or more employees is increasing from $41,600 to $43,680 per year.
Although the federal overtime rule changes are currently on hold, California’s state law – requiring that exempt employees make at least twice the state minimum wage on a monthly basis – is still in effect. Employers with 25 or fewer employees will not be subject to this increase in 2017, since the applicable minimum wage for their employees will remain $10.00 per hour.
We recommend that you review the pay rates of your employees to ensure compliance with the new minimum wage rates. Please also note that certain localities in California have higher hourly minimum wage rates than the state requirement.