California Minimum Wage Increase
Starting January 1, 2018, the state minimum wage rate is going up.
- Employers with 26 or more employees must
pay their workers at least $11 per hour
- Employers with 25 or fewer employees must pay their workers at least $10.50 per hour
In addition some localities have passed their own ordinances, in which the minimum wage for 2018 is actually higher than the state minimum wage. Exempt employees may also be getting a pay increase in order to maintain their exempt status. Most exemptions contain a minimum salary test, in addition to the job duties tests.
For an employee to qualify under the commonly used administrative, executive or professional exemptions from overtime, the employee’s salary must be no less than two times the state minimum wage for full-time employment, which as of January 1 is $45,760 annually for employers with 26 or more employees. For employers with 25 or fewer employees, the minimum salary threshold for that exemption is $43,680 for 2018.
Other Employment Law Changes
As we approach the New Year, it’s that time again where you need to prepare for the new California employment laws for 2018 that employers need to know. Several new laws will affect California employers' daily operations and policies in 2018 and beyond. Some new laws made significant changes while others made small changes to existing laws. Is your business ready for these new policies? In the Pro Back Office January newsletter we will highlight some of the important new employment laws effective on January 1, 2018 and insights on how to better prepare for these new California employment laws for 2018.
If you need help with your HR department and preparing for the new fiscal year, Pro Back Office offers outsourced HR services to help your business with its hiring and HR employment needs. For more information please contact Laura Nieman at Laura@probackoffice.com; leave a message at (877) 868-6164 or use on our online contact form.