Starting January 1, 2025, California’s minimum wage will rise from $16.00 to $16.50 per hour, affecting all employers regardless of size. This increase is part of an annual adjustment based on the Consumer Price Index (CPI), which saw a 3.18% increase over the past year. Along with the hourly wage increase, the minimum salary for full-time exempt employees will also rise, moving from $66,560 to $68,640 per year.
Employers should note that this state-wide minimum wage increase is just one part of a broader wage landscape in California. Many cities and industries within the state have their own minimum wage requirements, often higher than the state minimum. It’s crucial for employers to stay informed about these local variations to ensure compliance with all applicable wage laws
Looking ahead, California voters will face a significant decision in November with Proposition 32, a ballot initiative proposing to further raise the state’s minimum wage to $18 per hour by 2026. If passed, this initiative would also introduce annual adjustments tied to the CPI to account for inflation.
If you have questions about minimum wage or salary compliance, or need guidance on how these changes might affect your business, contact our team at info@mnklawyers.com
