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.
5. Employers bear the burden of proof when establishing that an employee qualifies as an exempt employee.