California’s minimum wage is increasing!
Effective January 1, 2018, the overtime rate for minimum wage employees is:
- Employers with 26 or more employees: $11.00 per hour
- Employers with 25 or fewer employees: $10.50 per hour
The minimum wage rate change also affects the classification of employees as exempt versus nonexempt. For an employee to qualify under the commonly used administrative, executive or professional exemptions from overtime, the employee must meet the salary-basis test (which means the employee’s salary must be no less than two times the state minimum wage for full-time employment) in addition to meeting all other legal requirements for the exemption. That minimum salary rate is $45,760 annually, effective January 1, 2018, for employers with 26 or more employees. For employers with 25 or fewer employees, the minimum salary threshold for the administrative, executive and professional exemptions is $43,680 for 2018.
Confused? Want to get out of the labor regulation business and back to your real work? Call Sequoia … we have solutions!