In California, the proposal known as Prop 32, aimed at increasing the minimum wage to $18 an hour, did not pass, with 49.2% voting in favor and 50.8% against. As a result, the state's minimum wage will see an adjustment as per the pre-existing legislation.
The current minimum wage of $16.00 per hour is set to rise to $16.50 per hour starting January 1, 2025. This adjustment represents a 3.18% increase, calculated based on the U.S. CPI-W from July 1, 2023, to June 30, 2024. Consequently, the annual salary for exempt employees will increase from the current $66,560 ($5,546.67 per month) to $68,640 ($5,720 per month) effective January 1, 2025.
Employers are advised to take several steps in anticipation of the wage increase. These include updating payroll systems to reflect the new minimum wage rate by January 1, 2025, revising budgets to account for the higher labor costs, ensuring employees are informed about the wage increase through updated mandatory notices and conducting a compliance check to ensure all wage-related policies and practices are in alignment with the new minimum wage requirements.
Source: Western Growers