by Elizabeth J. Boca
The minimum wage in California will increase from $9 to $10 an hour as of January 1. Employers must understand that paying the higher minimum wage alone doesn’t satisfy their obligations because the upcoming increase will spark a domino effect in various compliance areas.
Exempt “white-collar” employees. Each time the state minimum wage increases, so does the minimum salary required for exempt white-collar employees. Under Labor Code Section 515, to qualify as exempt from overtime as an executive, administrative, or professional employee, a worker must earn a monthly salary equivalent to at least two times the state minimum wage for full-time employment totaling 40 hours per week, or 2,080 hours per year.