The minimum wage for non-exempt (hourly) employees for employers with 25 or less employees will increase to $12 per hour. Employers with more than 25 employees will see an increase to $13 per hour.
With this minimum wage increase comes an increase in the annual minimum salary requirement for exempt (salaried employees). The minimum wage for exempt/salaried employers for employers with 25 or less employees will increase to $49,920. Employers with more than 25 employees will have an increase to $54,080.
It is permissible under the law to reclassify exempt/salaried employees to non-exempt/hourly employees. All employees can be non-exempt. The only issue is with exempt positions. Exempt positions must meet the minimum salary requirements (stated above) and also meet the “duties” requirements under the Fair Labor Standards Act and CA Wage and Hour regulations. But remember, non-exempt employees are entitled to break and meal periods, must maintain time records, and be paid for overtime in excess of eight hours in a day and/or 40 hours in a week (whichever is higher).