California Minimum Wage to Increase Again on January 1, 2025.
The minimum wage in California is already scheduled to increase to $16.50 per hour on January 1, 2025, for all employers — regardless of the number of workers employed by an employer.
In addition, many cities and local governments in California have enacted minimum wage ordinances that are higher than the required state minimum wage. Be sure to check with all cities in which your employees work to ensure that you are paying them the correct minimum wage!
However, if Ballot Measure Prop 32 passes on November 5, 2024, wages could increase more than already scheduled, and wage increased would take place immediately for businesses with 26 or more employees.
URGENT: Ballot Measure Prop 32 on November 5 Ballot Could Further Raise the Minimum Wage before January 1, and cause a land mine of potential wage and hour violations for employers.
On the November 5, 2024 Ballot, California voters will be asked to vote on Proposition 32. If it passes, the minimum wage in California will immediately change for large employers to $17 per hour, and then to $18 per hour on January 1, 2025. (Large employers are qualified as 26 or more employees).
In addition, for employers with 25 or fewer employees, instead of $16.50 on January 1, the new minimum wage would be $17 per hour, and then $18 per hour starting January 1, 2025.
This means that for the remainder of 2024, an employer with 26 or more employees will need to immediately raise the minimum salary threshold for overtime exemption to $70,720, and then again to $74,880 on January 1, 2025. If an employer has less than 26 employees (i.e., 25 employees or less), the minimum salary threshold will increase to $70,720 on January 1, 2025, and then to $74,880 on January 1, 2026.
Is your business ready to make this potential change on November 6? Please educate yourself more about this proposition here: https://voterguide.sos.ca.gov/propositions/32/index.htm
You can find the arguments and rebuttals here: https://voterguide.sos.ca.gov/propositions/32/arguments-rebuttals.htm