A Reminder of Minimum Wage Increases Coming in the New Year
California’s drive toward a 15-dollar minimum wage for all employers continues. Effective January 1, 2022, the minimum wage for employers with 25 employees or less will increase to $14.00 per hour, and for employers with 26 or more employees, the minimum wage will increase to $15.00 per hour. Employers must remember this increase also affects minimum salary requirements for exempt employees.
For workers to qualify as exempt employees, California requires that they perform exempt duties more than 50 percent of their work time; and that exempt executive, administrative, and professional employees earn a salary of no less than two times the state minimum wage for full-time employment. The minimum annual salary is based on the current state minimum wage, calculated as follows: (minimum wage x 2) x 2,080 hours. Effective January 1, 2022, the minimum salary threshold for these exemptions are:
- Employers with 1-25 employees: $58,240 per year.
- Employers with 26 or more employees: $62,400 per year.
- Computer professionals: $50.00 per hour; $8,679.16 per month; $104,149.81 per year.
- Licensed physicians and surgeons: $91.07 per hour.
Employers should review compensation for their exempt employees to ensure that the appropriate minimum salary level is satisfied. If the salary level is not satisfied, the employer should consider increasing compensation to meet the minimum, or reclassify the employee as nonexempt.
Employers must also ensure their minimum wage postings are updated appropriately to reflect state and local increases.
La Verne Chamber of Commerce
2332 D Street, Unit E
La Verne, CA 91750