Compensation Solutions Blog
Human Resources Outsourcing (HRO – PEO – ASO – Payroll – Agency)

California Revises State Minimum Wage effective July 1, 2014

Effective July 1, 2014, California’s revised minimum wage will be increased to $9.00 per hour for all hours worked in California. Employers must pay their employees a wage not less than the amount of the hourly state minimum wage for all hours worked in California. The definitions of “employer,” “employee,” and “wage” for state purposes are the same as those established under the federal Fair Labor Standards Act (FLSA).

This raise impacts the minimum salary threshold to qualify as exempt from California’s minimum wage and overtime requirements under the “white collar” exemptions, which include the administrative, executive, and learned professional exemptions.  To qualify as exempt under the FLSA, employees must be paid at least double the minimum wage.  Accordingly, on July 1, 2014, to qualify for a “white collar” exemption, an employee must earn an annual salary of at least $37,440.  This amount is based on a forty (40) hour workweek.  Please contact Kelly Lipari, HR Director at 800-654-4234, ext. 180 for additional information.