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California’s Minimum Wage Increase on July 1, 2014 May Influence Employees’ Status as Exempt from Overtime Pay

Come July 1, 2014, California’s minimum wage will increase from $8 per hour to $9 per hour for all workers (the minimum wage will increase again to $10 per hour on July 1, 2016).

In order to qualify as an employee exempt from overtime pay requirements, the employee must be paid an equivalent of two times minimum wage. Before the minimum wage increase in July 2014, this amount is about $33,280 annual salary.  When the minimum wage increases to $9 per hour, this amount will increase to about $37,440 annual salary.  Thus, come July 1, 2014,  if the employee is paid an annual salary less than $37,440, he or she will lose exempt status and be entitled to overtime compensation.

If you have any questions or concerns or if you feel you are being denied owed overtime compensation, contact the attorneys at Zeldes Haeggquist & Eck, LLP.

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