Most employers know that they will have to begin paying their employees a minimum of $9.00 an hour as of July 1, 2014. In addition to effecting their hourly/non-exempt employees, this change may also effect some of their salary/exempt employees.

Presently, exempt employees (for many businesses, its managers) must be paid at least $2,774 per month/$33,288 a year due to California’s requirement that exempt employees make at least twice the minimum wage for a standard 40 hour work week. After July 1, 2014, employers will need to pay those same employees at least $3,120 per month/ $37,440 per year, or a raise of $4,152. After January 1, 2016, when the minimum wage increases to $10.00 an hour, employers will have to pay those same employees at least $3,467 per month/$41,604 per year.

Employers must take these cost increases into account when thinking about their strategic planning for 2015 and beyond.

Disclaimer
The information in this blog post (“post”) is provided for general informational purposes only, and may not reflect the current law in your jurisdiction. No information contained in this post should be construed as legal advice from Reid & Hellyer, APC or the individual author, nor is it intended to be a substitute for legal counsel on any subject matter. No reader of this post should act or refrain from acting on the basis of any information included in, or accessible through, this Post without seeking the appropriate legal or other professional advice on the particular facts and circumstances at issue from a lawyer licensed in the recipient’s state, country or other appropriate licensing jurisdiction.
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