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MINIMUM WAGE INCREASES EFFECTIVE JANUARY 1, 2021

10.14.20   

By Jennifer Jacobus, PHRca, SHRM-CP SDEA Director of HR Services.

MINIMUM WAGE INCREASES EFFECTIVE JANUARY 1, 2021

Effective January 1, 2021 minimum wage is increasing for both the state of California and the City of San Diego.  This is what it looks like for employers:

For employers in California who have 25 or less employees, the minimum wage for non-exempt employees will increase from $12/hour to $13/hour; for employers who have 26 or more employees, the minimum wage will increase from $13/hour to $14/hour.

The City of San Diego’s minimum wage will also increase at the first of the year.  For employers who have employees who work at least two hours or more a week, within the geographical boundaries of the San Diego limits, they will be required to pay their employees $14/hour, regardless of the number of employees.  Again, this only applies to those employees who work in the City and will require an update to your mandatory postings.

Because exempt salary minimums are directly tied to the state’s minimum wage (exempt employees are to be paid two times the current state minimum wage), this means an increase to the minimum allowed as a salary for exempt employees.

For employers who have 25 or less employees, the minimum exempt salary will increase to $54,080; for employers with 26 or more employees, the minimum exempt salary will increase to $58,240.  Exempt employees must be paid this minimum in order to retain their exempt status.

If you have any questions you can call 858.405.0024

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