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HRPG Employer Advisory
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CA Employees to Get Min Wage Increase
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California Governor Jerry Brown has approved a minimum wage increase for California
employees. Currently, minimum wage is $8 per hour. The first phase has minimum
wage going up to $9 an hour beginning July 1, 2014. The second phase, taking effect
January 1, 2016 will have minimum wage going up to $10 per hour.
Employment policies and practices that are tied to minimum wage will be impacted by
this new law. For instance, premium pay for missed meal and rest periods will go up,
as well as overtime rates. The minimum salary for certain overtime exemptions will also
rise. Under the new law, employees must be paid a monthly salary equal to no less than
two times the state minimum wage, in order to qualify for the Executive, Administrative
and Professional exemptions. The new minimum salary for this group of employees will
increase from $33,280 to $37,440 in 2014 and up to $41,600 in January of 2016.
Now is a good time for all employers to review their compensation practices. Employers
will want to be in full compliance prior to the first increase in July 2014.
HRPG is ready to help you with your questions about full compliance and the minimum
wage increase. Please contact Alden Reynoso at (760) 730-9531 for assistance.
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Employer Alerts
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