This blog covers a quick five reminders about the California minimum wage increase and its impact upon exempt employees who will have a corresponding increase in pay:
1. As of January 1, 2020, the minimum wage in the state of California will increase from $12.00 per hour to $13.00 per hour for employers with 26 or more employees (the increase is from $11.00 per hour to $12.00 per hour for employers with 25 or fewer employees on January 1, 2020).
2. With the increase in the state minimum wage, there is a corresponding rise in the minimum salary required to qualify as exempt under the state’s white collar exemptions.
Therefore, on January 1, 2020, in order to qualify for a white-collar exemption, the employee must receive an annual salary of at least $54,080 for large employers and $49,920 for small employers. See the California Wage Orders – All Orders, section 1 for Executive, Administrative and Professional employees)
3. The salary for exempt employees must be a guaranteed, fixed amount.
4. To qualify as an exempt employee, the employee must perform more than 50% of their time performing exempt duties.
5. Employers bear the burden of proof when establishing that an employee qualifies as an exempt employee.
Employees should be aware of their rights and the increased pay responsibilities of their employers. If you are reading this and you have more than one (1) employee, employers are strongly urged to review and update their handbooks, policies, and procedures in anticipation of the new laws. Quintilone & Associates can assist you with writing or reviewing these policies. Please call us at 949.458.9675 or email Rich Quintilone at email@example.com if you have any questions