Earn a salary equivalent to at least twice the state minimum wage for full-time (40 hours/week) work. 2021 is nearly here and New York State has once again increased the minimum wage and the overtime exempt salary threshold effective December 31, 2020. The minimum wage rate is the lowest hourly pay that can be awarded to workers, also known as a pay floor. 2021 California State Minimum Wage Law. Non-exempt employees are required to make at least minimum wage. The appellate court recognized in a footnote that the regulations did provide that “an employer may provide an exempt employee with additional compensation without losing the exemption or violating the salary basis requirement, if the employment arrangement also includes a guarantee of at least the minimum weekly-required amount paid on a salary basis,” citing 29 C.F.R. The minimum yearly salary for exempt employees will increase by twice the minimum wage times 2080 hours. In California, exempt employees must receive a salary of at least twice the state minimum wage for a 40-hour workweek, in addition to meeting the general duties and other requirements. Employers must remember this increase also affects minimum salary requirements for exempt employees. Because most exempt employees in California must make at least twice the minimum wage on an annual basis, the current minimum salary for exempt employees who work for employers having more than 25 employees will increase from $41,600 to $43,680 effective January 1, 2017. For large businesses (51 or more employees), an exempt employee must earn a salary of at least 1.75 times the minimum wage, or $49,831.60/year. § 541.604(a) (2019). ⁠2 Some employees, however, are exempt from minimum wage and overtime laws, as well as related laws requiring employers to provide rest periods. The California minimum wage for 2020 is $13.00 per hour. For instance, employers with 25 employees or less must pay a minimum wage of $13.00 per hour. California Minimum Wage is Going Up—And There’s More The passage of Senate Bill 3 (SB3), which introduced a step-based minimum wage in California, means another minimum wage increase in 2021. On January 1, California’s minimum wage will increase to $14 per hour for employers with 26+ employees. For 2021, this means exempt employees must receive a minimum annual salary of $58,240 for employers with more than 26 employees, and $54,080 for employers with 25 employees or less. Effective Jan. 1, 2021, the minimum wage for employers with 25 employees or less will increase to $13.00 per hour, and for employers with 26 or more employees, the minimum wage will increase to $14.00 per hour. ** Hayward and San Carlos will impose new minimum wages as of January 1, 2021 *** San Diego’s minimum wage has been surpassed by the state minimum wage Minimum Wage Increase. This was an anticipated step. It is that time of the year again. Employers with 26 employees or more must pay their workers at least $14.00 per hour. Overtime . When the minimum wage goes up statewide, so does the exempt salary threshold. California has more complicated minimum wage laws than any other state. Under the FLSA, non-exempt employees must be paid the minimum wage or higher. On January 1, 2023, the minimum wage will increase to $15 per hour. Along with the increase to the minimum wage, the amounts that employers can deduct from employees’ wages for items such as uniform allowances and meals are also set to change on December 31. The salary test is not affected, however, by any applicable local minimum wage. * Novato has a third category of minimum wage, for very large businesses with 100+ employees. For additional information about general questions regarding the Minimum Wage … The wage increase will be dependent upon the number of persons employed by the employer. 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