Assembly Bill (AB) 10, signed into law by Governor Brown, raises the current state minimum wage of $8 per hour to $10. Employers will be required to raise wages to $9 per hour by July 1, 2014, and $10 per hour by January 1, 2016. This would be the first minimum wage increase in California in five years. Some Bay Area cities and counties have already raised their minimum wages this year. San Francisco’s minimum wage is $10.55, and San Jose’s is $10.
Not only will the state minimum wage increase, but the minimum salary requirement for exempt employees under California law also will increase. To qualify as exempt under the executive, administrative, or professional exemptions, an employee must earn a monthly salary of at least twice the state minimum wage for full-time employment. Currently, exempt employees must earn at least $2,773.34 per month. If AB 10 becomes law, the minimum monthly salary for exempt employees would increase to $3,120 on July 1, 2014, and $3,466.67 on January 1, 2016.