Tuesday, September 24, 2013

California State Minimum Wage Going Up...and Then Up Some More

The Governor will sign AB 10 on 9/25.  The new bill will raise the California minimum wage from its current $8.00 per hour to $9.00 on July 1, 2014.  Then it will go up to $10.00 on January 1, 2016.
This change will affect overtime calculations, the retail inside sales exemption (measured based on whether employees earn more than 1.5 X minimum wage), and the salaried exemptions (based on salary of at least 2 X minimum wage).  It will also affect the "split shift" threshold which imposes a split shift premium for those workers who earn less than minimum wage + 1 hour at minimum.
There will be a new poster!
Read the new law here.