When a local minimum wage increases, does the salary test for our exempt employees also increase?
HRCalifornia
These local minimum wage rate increases apply only to an employer’s nonexempt employees. The increases don’t alter the salary test for the employer’s exempt employees.
The exempt salary test is calculated using the current California minimum wage, even if an employer’s nonexempt employees may be entitled to receive a higher minimum wage under a local ordinance.
Read Local Ordinances for more information.
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