As of January 1, 2025, the state’s minimum wage has officially increased to $16.50 per hour for all employers, regardless of how many employees they have.
For many Californians, this increase will mean a much-needed boost in their earnings, helping to keep pace with the rising cost of living. Whether you work in retail, hospitality, service industries, or any other sector, this new minimum wage floor applies to you.
Increase in Minimum Wage Impacts Salary Employees Too
The minimum wage increase also has a direct impact on the salary requirements for exempt employees in California. For employees to be exempt from overtime pay under California law, they must meet certain criteria, including a minimum salary level.
As of January 1, 2025, the minimum annual salary for exempt employees in California has also increased to $68,640. If you are not receiving a salary of at least $68,640, you may be misclassified and entitled to significant unpaid wages.
Key Takeaways for Employees:
- Check Your Paycheck: If you are earning minimum wage or close to it, ensure your employer has implemented the $16.50 per hour rate on your paychecks starting from January 1, 2025.
- Exempt Status Awareness: If you are a salaried employee who is not receiving overtime wages, be aware of the new minimum salary requirement of $68,640. If your salary falls below this, your classification as exempt may be illegal.
If you believe you are not receiving all the wages you are owed by your employer, contact Sani Law today.
