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.

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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