Effective July 1, 2014, California’s minimum wage will increase from $8 to $9. This hike will not only affect non-exempt, hourly workers, but also workers in various exempt, salaried positions that are subject to minimum salary requirements calculated based on the minimum wage. For example, employees in white collar exemptions (i.e., executive, administrative, and professional) must earn at least $3,120 per month ($37,440 per year) and commissioned, inside salespeople must earn at least $13.50 per hour to be exempt from overtime.

Employers should ensure they are paying the appropriate hourly rate to hourly employees and conduct an audit of compensation for salaried employees to ensure compliance with the law.​​​​​​​​