New Minimum Pay Rate For Exempt Employees

In a recent post, I mentioned minimum wage increased to at least $15/hr in California. Some cities require employers to pay an even higher hourly rate. This law is meant to protected non-exempt employees struggling to earn a living.

Does this increase in non-exempt wages affect wages for exempt employee? YES!

The increase also result in higher minimum pay for exempt employees. A hike in the state’s minimum wage automatically brings an increase in the minimum salary for certain overtime exempt employees. Under the administrative, executive, and professional exemptions, California employers must pay exempt employees a monthly salary of at least twice the state’s minimum wage. With the new minimum wage increase, the minimum salary will be $5,373.33 per month, or $64,480 a year.

If you are exempt, but find you are not earning twice the minimum wage rate, then you are not being paid correctly and, if you wish, can seek to recover all unpaid wages. If you raise the issue with your employer and they fire you, then you have a viable retaliation/wrongful termination claims.

If you have questions about this topic please feel free to reach out to Christopher Taylor, Esq. at (626) 219-6008.