California is set to implement statewide wage increases that will affect businesses across various sectors. It's crucial to stay informed about these changes to ensure compliance and proper compensation for your employees. Below is a summary of the upcoming minimum wage increases:
Statewide Minimum Wage Increase:
Effective January 1, 2024, the California state minimum wage will rise to $16 per hour for employers of all sizes.
Minimum Salary for Exempt Employees:
With the increase in minimum wage, the minimum annual salary for exempt employees will be $66,560 from January 1, 2024.
Local Living Wage Ordinances:
Various "living wage ordinances" have been adopted in several locales within the state. Businesses should verify local wage standards to ensure full compliance with jurisdiction-specific requirements.
Special Provisions for Computer Professionals:
Exempt computer professional employees are required to be compensated with a minimum of $55.58 per hour or an annual salary of $115,763.35.
Sector-Specific Minimum Wage Increases:
For the fast food industry, a separate minimum wage increase will come into effect on April 1, 2024.
Healthcare facility employers will experience a minimum wage increase on June 1, 2024.
It is imperative for your business to prepare for these wage adjustments to maintain compliance and ensure fair compensation for your team. If you need further guidance on the new minimum wage regulations or assistance in adapting your payroll procedures, please don’t hesitate to contact us.