CALIFORNIA: Minimum wage for exempt workers increased July 1, 2014

In order for a professional, administrative, or executive employee to be exempt from overtime in California, the minimum annual salary must be at least $37,440 as of July 1, 2014. This is a result of California’s new hourly minimum wage of $9.00 per hour. The minimum annual salary for exempt workers is calculated by multiplying $9.00 per hour times 40 hours per week times 52 weeks per year, and then doubling that figure. Our June 19, 2014, newsletter contained the old figure of $33,280. Keep in mind that exempt status depends not only on meeting a minimum salary, but also on performing relatively high-level job duties. To learn more, see our Legal Guide, “State Laws on the White Collar
Exemptions from Overtime” (4051).