9.19.24
By Jennifer Jacobus, PHRca, SDEA CEO 
SDEA has been fielding calls from our members asking about a potential minimum wage increase for 2025. While we may not like it, I think most employers have gotten accustomed to minimum wage increases on an annual basis. This year voters will be able to vote on a minimum wage increase that, if voted in, would go into effect January 1, 2025. With election day November 5, 2024, that might not give a lot of employers time to budget.
What is being proposed under Proposition 32 is to increase California’s minimum wage to $18 per hour, but over a period of time for “smaller” employers. For employers with 26 or more workers, the minimum wage would increase to $18 on January 1, 2025. For employers with 25 or less workers, the minimum wage would increase to $17 per hour on January 1, 2025, and $18 on January 1, 2026. Starting in 2027, minimum wage increases would be tied to the U.S. Consumer Price Index (CPI-W).
We always need to remind employers that the minimum salary for exempt employees is tied to California’s minimum wage. This would mean that if the proposition is passed, employers with 26 or more employees would need to pay their exempt employees of minimum of $74,880 as of January 1, 2025 and employers with 25 or less would need to pay their exempt employee a minimum of $70,720 on January 1, 2025 and $74,880 on January 1, 2026.
If you have questions about this or your exempt employees, call SDEA at 858-505-0024.