Minimum Wage – What Your Business Needs to Know

Minimum wage is going up in many states January 1st, 2018! Here is what you need to know:

California Employers

Effective January 1, 2018 for employers in California with 25 or less employees, the minimum wage will now be $10.50 per hour. Those with 26 or more employees will have a minimum wage of $11.00 per hour. Looking ahead, California employers can anticipate the following rate increases:

An employer with 26 or more employees at any time during a pay period should apply the higher minimum wage to all employees for that pay period. If an employer’s workforce falls below 26 employees the employer does not need to automatically lower their minimum wage rate. However, if the minimum wage is reduced because the threshold falls below 26 employees, the employer must notify the affected employees in advance before reducing their wages.

Minimum Salary Exemptions for California

“Computer software professionals” – For these employees to be exempt from overtime, effective January 1, 2018, the minimum annual salary of $90,790.07 will need to be achieved. This equals an hourly rate of $43.58, and/or a monthly salary of $7,565.85. If paid less than this, the employee should be subject to overtime
Other industries will have a threshold of $43,680.00 (smaller/25 or less employees) to $45,760 (larger employers). Anybody making less than these amounts should be considered non-exempt.

Please Keep in Mind

Local jurisdictions – Counties or Cities – may have their own minimum wage that may trump the State minimum wage. Employers must pay the rate that benefits the employee. Please check with your local government agency for more information.