On January 1, 2025, the California state minimum wage will increase by 50 cents, bringing it to $16.50 per hour. The minimum wage will remain at $16.00 per hour through December 31, 2024. Certain exempt-level employees (administrative, executive, and professional) will also see an increase in the minimum annual salary threshold on January 1, 2025 – from $66,560.00 to $68,640.00 (or $5,546.67 per month to $5,720.00 per month).
As a result of the increased minimum wage rate, by January 1, 2025, California employers may need to do a handful of things:
The updated poster can be found on the California Labor Commissioner’s website, located here. The poster must be conspicuously displayed in a place that is accessible to employees.
Some municipalities in California have minimum wage ordinances that set minimum wage rates that are higher than the state minimum wage. Employers with employees working in those cities should ensure they are complying with any applicable local ordinance. Employers Council members can access our whitepaper that provides current minimum wage rates as they apply to various California localities.
Employers Council members can contact the California Legal Services team at CAinfo@employerscouncil.org if they have any questions about the minimum wage increase or how it affects their operations.
Jaimie Graczyk is an attorney for Employers Council and the director of Arizona, California, and Utah membership.