California Minimum Wage Increases to $10 per hour

Effective January 1, 2016 the minimum wage in California is $10 per hour.  Employers need to be aware, however, that this affects more than just employess in non-exempt positions.  In order for an employer to classify a job as exempt from overtime and other provisions of the Department of Industrial Relations Wage Orders under the executive, administrative, or professional exemption, an exempt position must meet both the salary basis test and the duties test.  Under the salary basis test, an exempt in California employee must be paid at least two times the minimum wage.  An employer could risk facing a misclassification lawsuit or Labor Commissioner claim if it fails to increase exempt employees’ wages to meet the salary basis test under the new wage amount.

© Alexandra M. Steinberg 2016 All rights reserved.