Today the governor signed into law AB 10 which will increase the minimum wage starting July 1, 2014. The law calls for two increases to the minimum wage. The first will increase will be from $8 to $9. The second increase will take place on January 1, 2016 and will increase the minimum wage in California to $10 per hour.
These changes will also effect the exemption limits. A non-exempt employee needs to be making $640 a week in salary (40 hours x $8 x 2) to be exempt from overtime. This is assuming the other parts of the test are met under either the executive, administrative or professional exemptions. Now, the weekly salary number will need to jump to $720 per week in 2014 and $800 per week in 2016.
This is will provide workers with needed cost of living increases in both line level employees and middle management.