In addition to the excellent reminders my colleague, Sahara Pynes, posted here about all of the things California employers should do to get ready for 2016, here is another one:  Don’t forget that the state’s minimum wage goes up to $10 per hour on January 1, 2016.  That also means that the minimum salary for exempt classification status also goes up to $41,600 (twice the state’s minimum wage) for all “white collar” exemptions (administrative, executive and professional).  While some cities have higher minimum wages, the baseline for exempt status is still set by the state’s minimum wage (not each city).

Also keep in mind that different thresholds apply for other exemptions including commissioned salespersons (1.5x minimum wage), outside salespersons (1x minimum wage), and computer professional (currently $41.85 per hour).

Now is the time to confirm that you and your payroll provider are all set for this increase.  It is also a good time to evaluate the status of anyone classified as exempt who is at or below the minimum salary baseline for the appropriate exemption.