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California Minimum Wage Increase

As expected, Governor Schwarzenegger signed AB 1835 raising minimum wage to $7.50 effective January 1, 2007, and then to $8.00 effective January 1, 2008.

The new law effects not only minimum wage earners, but also exempt employees. To be exempt from the overtime laws under the Professional, Administrative or Executive exemptions, the employee must receive a monthly salary equivalent to two-times minimum wage. The salary is based on a 40-hour workweek.

Beginning January 1, 2007, Professional, Administrative or Executive employees must receive no less than $600.00 per week or $31,200.00 per year. Beginning January 1, 2008, they must receive no less than $640.00 per week or $33,280.00.

Individual and class-action lawsuits based on improper classifications result in millions of dollars in losses every year to business in California. Employers should review their position descriptions and payroll to ensure employees are properly classified.

The Law Office of Phillip J. Griego
95 South Market Street, Suite 520
San Jose, CA 95113
Tel. 408-293-6341
Original article by Robert E. Nuddleman, former associate of The Law Office of Phillip J. Griego.

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Phillip J. Griego represents employees and businesses throughout Silicon Valley and the greater San Francisco Bay Area including Palo Alto, Menlo Park, Mountain View, Los Altos, San Jose, the South Bay Area, Campbell, Los Gatos, Cupertino, Morgan Hill, Gilroy, Sunnyvale, Santa Cruz, Saratoga, and Alameda, San Mateo, Santa Clara, San Benito, Mendocino, and Calaveras counties.