Starting January 1, 2025, the state minimum wage will rise from $16.00 to $16.50 per hour. California law requires most workers to be paid at least the minimum wage.
The increase in minimum wage also impacts certain employees who are exempt from overtime pay. For example, executive, administrative, and professional exempt employees must earn a salary of at least two times the state minimum wage for full-time work. Beginning January 1, 2025, this means those exempt employees must earn no less than $68,640 per year.
Employers also have specific responsibilities when it comes to the minimum wage. Employers must post the Minimum Wage Order and the Wage Order for their workplace where employees can easily see them. These documents are available for download on the Department of Industrial Relations website. They must ensure the wage rate is clearly displayed on each employee’s pay stub. Employees must be paid at least the minimum wage, even if they are paid by piece rate.
It’s important to note that some cities and counties in California have higher local minimum wages than the state rate. Employers in these areas must follow the local laws if they set a higher minimum wage.