The California Department of Finance published a letter on July 31, 2023, stating that the state minimum wage, which is currently $15.50 per hour, will be increasing to $16.00 per hour effective January 1, 2024, to account for inflation.
What Does This Mean for Employers?
-
Employers, regardless of their size, must pay all California non-exempt employees at least $16.00 per hour by January 1, 2024. Employers should also review local minimum wage ordinances, some of which are higher than the state minimum wage and adjust pay for employees working in those localities accordingly.
-
The new minimum salary for exempt employees will be $66,650 per year as of January 1, 2024 (the current salary threshold is $64,480). Employers should ensure that employees classified as exempt earn at least the minimum salary requirement and meet the duties of the relevant exemption for the position.
-
Employees required to provide or maintain personal tools or equipment for their work must earn at least double the minimum wage, which will increase from the current hourly wage threshold of $31.00 per hour to $32.00 per hour as of January 1, 2024.
-
Employers should review split-shift calculations and other wage-related items, such as meal and rest period premiums and paid sick leave, to ensure compliance.
Please reach out to Medina McKelvey if have any questions about the 2024 minimum wage increase and what it means for your business by replying to this email or giving us a call at 916-960-2211.