California Minimum Wage Increases July 1, 2014

Effective July 1, California will raise its minimum hourly wage from $8.00 to $9.00. The increase will also affect the minimum salary requirement for several categories of employees that are exempt from minimum wage and overtime requirements. The minimum salary of exempt executive, administrative and professional employees will increase to $3120.00 per month (twice the state minimum wage). Commissioned, inside sales employees’ minimum hourly rate will increase to $13.50 per hour (in order to maintain the one-and-a-half times minimum wage requirement for their exempt status).

We recommend that employers review the pay rates of both their non-exempt and exempt California employees to ensure that they are in compliance with the new minimum rates by July 1, 2014.