Increase in California Minimum Wage

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Assembly Bill 10 raises California's hourly minimum wage rate to $9.00 per hour, beginning July 1, 2014. Effective January 1, 2016, the minimum wage rate will increase an additional $1.00 to reach $10.00 per hour. In addition to adjusting the rates of pay for non-exempt hourly employees, employers should review the salaries of their exempt employees to ensure that they earn a minimum monthly salary of no less than two times the state minimum wage for full-time employment. Also note that effective January 1, 2014, minimum hourly rate exemption for computer software employees, as defined by Labor Code section 515.5, increases from $39.90 to $40.38, the minimum monthly salary exemption from $6,927.75 to $7,010.88, and the minimum annual salary exemption from $83,132.93 to $84,130.53.