What employers need to know about the increase to minimum wage
- Dec 7, 2023
- 1 min read
Beginning January 1, 2024, the California state minimum wage will increase again to $16.00 per hour for all employers, regardless of company size. The current minimum wage rate is $15.50 per hour for employers. This means that smaller employers will see the impact with an increase of $.50 per hour for their employees earning minimum wage.
Additionally, employers in twenty-six cities and counties will be subject to even higher local minimum wages – employers are required to pay employees the higher of the rates. These increases usually take effect in either January or July.
The state minimum wage impacts other wage practices. The salary requirement for certain exemption tests will be re-calculated based on this new rate. Beginning January 1, 2024, the minimum salary for a full-time exempt employee will be $66,560 per year ($5,546.67 per month).
What does this mean for employers? The state minimum wage influences many other wage practices aside from your non-exempt employees currently earning the minimum wage. While we will highlight the top items to consider, reach out to your consulting team with specific questions regarding your pay practices.