Employers and employees should be aware that several California cities have recently increased their minimum wage on July 1, 2025. The state’s minimum wage increase applies to all employers regardless of its size and the number of people it employs. The state’s minimum wage is the least amount you may pay an employee for each hour of work. However, a city many set its own minimum wage that is higher than the state’s. In those cases, the higher minimum wage applies if you employ or work in a city with the higher minimum wage.
Read MoreThe new rule, which took effect on July 1, 2024, requires that any salaried workers who earn less than $43,888 (or $844 per week) are entitled to overtime pay for any hours worked beyond 40 hours per week. Under the new rule, the threshold will increase for the first time on January 1, 2025 and will be scheduled to increase every three years thereafter. On January 1, 2025, any salaried employers who earn less than $58,656 a year (or $1,128 per week) will be entitled to overtime pay. In creating a higher threshold, the Department of Labor estimates that approximately $4 Million previously exempt workers will be eligible for overtime pay.
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