CA Minimum Wage Ordinance 2024

Announcement: california minimum wage ordinance 2024


Effective January 1st, 2024, in California, the new minimum wage will increase to $16.00 per hour. Equivalently, the exempt salary threshold will increase, to $66,560 (or $5,546.67 per month). (source: CalChamber

Human Resources analyzed DU employees whose: a) positions were accurately classified as exempt, and b) positions are accurately classified as hourly staff, and will be impacted by this change. Beginning Friday, November 17th, supervisors will receive information on next steps to ensure compliance to this new ordinance. This is a time sensitive matter, and supervisors are requested to pay close attention to the following deadlines.

Deadlines:

Employees will see any authorized changes in their January 12th, 2024 paycheck.


What does it mean if a position is classified as exempt?

An exempt position is reviewed and identified by Human Resources as meeting the Federal and California mandated test qualifications, AND is exempt from overtime pay.  Also, although all employees are provided meal and rest breaks, non-exempt employees MUST take timely meal and rest breaks. 

what does it mean if a position is classified as non-exempt?

A non-exempt position is reviewed and identified by Human Resources as NOT meeting the Federal and/or California mandated test qualifications, OR does not meet the annual exempt salary threshold, AND is NOT exempt from overtime pay. 

Non-exempt employees MUST track all hours worked.  Non-exempt employees also MUST take timely meal and rest breaks and MUST not be prevented from taking such breaks or interrupted while taking such breaks. 

what is overtime pay?

Any work done by a non-exempt employee that is over 8 hours in a day, 40 hours in a week, or six days a week is considered overtime. Currently, overtime for an employee who earns minimum wage is paid at $23.25 per hour. As of January 1, 2024, it will increase to $24.00 per hour. Overtime is paid at 1.5x the hourly rate of the employee. Certain hours worked (over 12 hours in a day, and over 8 hours on the seventh consecutive day of work in a workweek) are paid at double time, meaning twice the employee’s hourly rate. 

*In accordance with the DU Employee Handbook, non-exempt employees who are required to work during holidays will receive holiday pay in addition to pay for the actual hours worked 

what is the current ca minimum annual exempt salary threshold?

The CA minimum annual threshold for exempt classified positions is currently $64,480. Effective January 1, 2024, it will increase to $66,560 (OR $5,546.67 per month).  It is calculated by taking 2x the hourly minimum wage, multiplying it by 2080 hours (the number of hours in a work year).

 i.   Formula: $16.00 per hour x 2080 hours per work year x 2 (double it) = $66,560 

do exempt employees work 52 weeks?

Not Always! Exempt employees who work 52 weeks out of the year will be paid at least the minimum annual exempt salary threshold.  An employee who works less than 52 weeks a year may be exempt as long as an employee is performing exempt duties AND is paid on a salary basis at least two times the state’s minimum wage for full-time employment during an applicable period, which could be as short as 1 week, the employee may be exempt during such a period of time.  Employees may be exempt and non-exempt at different periods of time within a single year. 

does an employee's change from exempt to non-exempt (or vice versa) impact time accrual?

Yes, time off accrual is impacted by both exempt or nonexempt status AND years of service to the university. Please refer to the time off accrual chart in the DU Employee Handbook for more information. 

if a position is non-exempt, does an employee need to clock time?

YES! As a non-exempt employee, employees must enter time and submit into Paycom on a weekly basis. Supervisors are expected to approve these hours accordingly.

if a position is non-exempt, are there any other requirements?

YES!  Although all employees are provided meal and rest breaks, non-exempt employees MUST take timely meal and rest breaks. 

when do the approved pay changes take effect?

All authorized pay adjustments will take effect on January 1, 2024, and be reflected on the January 12th, 2024 paycheck. 

who do i contact for assistance and general questions during this review period ( November - december 5,2023)

If you have any questions related to the changes and their impact in your area, please contact humanresources@dominican.edu.  

 

For more information about all areas of employment and classification, always refer to our Dominican University of CA Employee Handbook or HR Resource Site.

what is the current ca minimum hourly wage?

The CA minimum hourly wage is currently $15.50 per hour. Effective January 1, 2024, it will increase to $16.00 per hour.