This Friday’s five article covers five reminders about the California minimum wage increase and its impact upon exempt employees:
1. As of January 1, 2020, the minimum wage in California increased from $12.00 per hour to $13.00 per hour for employers with 26 or more employees (the increase is from $11.00 per hour to $12.00 per hour for employers with 25 or fewer employees on January 1, 2020).
2. With the increase in the state minimum wage, there is a corresponding raise in the minimum salary required to qualify as exempt under the “white collar” exemptions.
Therefore, on January 1, 2020, in order to qualify for a white collar exemption, the employee must receive an annual salary of at least $54,080 for large employers and $49,920 for small employers.
3. The salary for exempt employees must be a guaranteed, fixed amount.
4. To qualify as an exempt employee, the employee must perform more than 50% of their time performing exempt duties.
More information about the types of duties that qualify for the white collar exemptions can be read here.
5. Employers bear the burden of proof when establishing that an employee qualifies as an exempt employee.