California Minimum Wage Increase Coming January 1, 2023

Have you heard…? On July 27, 2022, California’s Department of Finance confirmed that, due to the raising inflation, the minimum wage for all employers, regardless of size, will increase on January 1, 2023.  Any qualifications based on wage minimums will rise accordingly. It’s not too early to prepare for this change.

For example, the threshold salary of the exempt classification qualification will become $64,480.

• To be exempt from the requirement of having to pay overtime to the employee, the employee must perform specified duties in a particular manner and be paid “a monthly salary equivalent to no less than two times the state minimum wage for full-time employment.” (Lab. Code, § 515, subd. (a).)
• Therefore, on January 1, 2023, to qualify for the overtime exemption, the employee must receive an annual salary of at least $64,480 annually ($1,240 weekly) for all employers.