What is the minimum salary for exempt employees in california 2022

Topics: Legal Information, Wage & Hour Issues

The California minimum wage is currently $15 an hour for employers of 25 or more employees and $14 an hour for all employers of less than 25 employees.  

California law says the state minimum wage must increase to $15.50 per hour for everyone in 2023 if inflation increases by more than 7% between the 2021 and 2022 fiscal years.  Thursday, the California Department of Finance said it projects inflation for the 2022 fiscal year — which ends June 30 — will be 7.6% higher than the year before, triggering the minimum wage increase.  Governor Newsom subsequently announced that all California employers will be required, regardless of size, to pay a new minimum wage of $15.50 per hour, effective January 1, 2023.

This development also increases the minimum salary for most exempt employees in California to $64,480 annually and $5,373.33 per month, effective January 1, 2023.  This increase is most significant for smaller employers, who currently have a salary floor of $58,240 annually.  

Finally, in other minimum wage developments, earlier this week supporters of California’s ballot initiative to raise California’s minimum wage to $18 per hour announced having submitted more than 1 million signatures — way beyond the 623,000 required to land it on the November ballot.  If this ballot measure passes, and many expect that it will, the minimum wage in the Golden State would go to $16 per hour on January 1, 2023, and move up by $1 an hour for all hourly employees annually, starting January 1, 2023, until reaching $18 an hour on January 1, 2028.   

Please contact your favorite CDF attorney if you have any questions about local or state minimum wage regulations in California. 

Original Article:

Minimum wage is increasing again on January 1st, 2022 in California as well as many other states across the country. In addition to the statewide increases for both small and large employers in California, there are also over 25 individual minimum wage increases for specific cities, counties and/or municipal areas that employers in those areas must meet.

Exempt employees in California may also see their wages go up, as the state is increasing the minimum salary requirements as well. It’s crucial for employers to be informed about their local mandates on top of state and federal requirements to ensure they are providing compliant wages and benefits to all of their employees. Here’s what employers should know about minimum wage requirements in California and beyond for 2022.

California Statewide Minimum Wage and Minimum Salary Requirements

The statewide minimum wage increases are as follows: 

• Effective January 1, 2022, minimum wage for small employers (25 or fewer employees) in the state will be $14.00 an hour.
• Effective January 1, 2022, minimum wage for large employers (26 or more employees) will be $15.00 an hour.

The statewide minimum salary requirements are as follows:

• Effective January 1, 2022, the minimum salary requirements for exempt employees of small employers are:
  • Weekly: $1,120
  • Biweekly: $2,240
  • Semimonthly: $2,426.67
  • Monthly: $4,853.33
  • Annually: $58,240
• Effective January 1, 2022, the minimum salary requirements for exempt employees of large employers are:
  • Weekly: $1,200
  • Biweekly: $2,400
  • Semimonthly: $2,600
  • Monthly: $5,200
  • Annually: $62,400

California Local and Municipal Minimum Wage

Making matters exceedingly more complex for employers with multiple worksites throughout the state are the individual local mandates for minimum wage compensation. Many cities, counties and municipal areas have their own set of minimum wage ordinances that are above state and federal levels in order to meet the cost-of-living demands in those areas. 

Some of the areas with their own minimum wage increases going into effect on January 1, 2022 are:

• Cupertino ($16.40 an hour)
• Daly City ($15.53 an hour)
• El Cerrito ($16.37 an hour)
• Los Altos ($16.40 an hour)
• Oakland ($15.06 an hour)
• Palo Alto ($16.45 an hour)
• Petaluma ($15.85 an hour)
• San Diego ($15.00 an hour)
• San Jose ($16.20 an hour)
• Sunnyvale ($17.10 an hour)
• And more… for a full list of California Minimum Wage Ordinances, download our free 2022 Minimum Wage & General Employment Ordinances E-guide.

Beyond the Golden State

The federal minimum wage is not increasing January, 1st, 2022, however, California is not the only state with minimum wage increases that exceed federal requirements. Colorado, Delaware, Florida, Illinois, Maine, Maryland, New Jersey, New Mexico, Ohio, Virginia, and Washington are among the list of states increasing their minimum wage in 2022. You can get a more detailed look into the minimum wage and local ordinances for your state, including local and county ordinances, when you download our free e-guide.

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