On September 25, 2013, the Governor signed AB 10 into law. Effective July 1, 2014, AB 10 raises the California minimum wage to $9.00 per hour and $10.00 per hour, starting January 1, 2016. The state has released updated California Minimum Wage posters in English and Spanish.
In addition to ensuring that non-exempt employees are paid at least the state minimum wage and posting the new minimum wage poster, employers are advised to review salaries of certain exempt employees to ensure that they meet the “salary basis” test. For employees to be classified as exempt from overtime, they must be paid on a salary basis and earn a monthly salary equivalent to at least twice the state minimum wage for full-time employment. After July 1, exempt employees will have to be paid the equivalent of at least $18.00 per hour on a 40-hour work week.