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Minimum Salary

  California requires the minimum salary for exempt employees to be twice the state hourly minimum wage level. On January 1, 2017, the minimum wage will increase in California to $10.50 per hour for employers who employ 26 or more employees. Thus, for businesses who employee at least 26 employees as of January 1, 2017, the California minimum salary for exempt employees must be twice that hourly rate times the number of hours that a full-time employee works. California assumes that a full-time employee works 40 hours per week or, on a yearly basis, 2080 hours. That means that an exempt, salaried employee must make $840 per week. On a yearly basis that is equal to a salary of $43,680. 

  The state minimum wage will increase  yearly until 2023. In 2022, the minimum wage will be $15 per hour for employers who have at least 26 employees. In 2023, all employers will be required to pay employees a minimum wage of $15 per hour. When the minimum wage rises to that level, the minimum weekly salary will be $1,200, and the minimum yearly salary will be $62,400.

  For those who want to anticipate the yearly minimum California hourly and minimum salary increases, the schedule is as follows for employers who employ at least 26 employees:

1. On January 1, 2017, the minimum wage will increase to $10.50 per hour.
2. On January 1, 2018, the minimum wage will increase to $11 per hour.
3. On January 1, 2019, the minimum wage will increase to $12 per hour.
4. On January 1, 2020, the minimum wage will increase to $13 per hour.
5. On January 1, 2021, the minimum wage will increase to $14 per hour.
6. On January 1, 2022, the minimum wage will increase to $15 per hour.

For all other employers, the minimum wage will increase on this schedule:

1. On January 1, 2018, the minimum wage will increase to $10.50 per hour.
2. On January 1, 2019, the minimum wage will increase to $11 per hour.
3. On January 1, 2020, the minimum wage will increase to $12 per hour.
4. On January 1, 2021, the minimum wage will increase to $13 per hour.
5. On January 1, 2022, the minimum wage will increase to $14 per hour.
6. On January 1, 2023, the minimum wage will increase to $15 per hour.

  The minimum yearly salary for exempt employees will increase by twice the minimum wage times 2080 hours. The governor has the ability to delay implementation of the above minimum wage schedules.

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