Beginning on January 1, 2025, the statewide minimum wage will increase to $16.50 per hour for all employers, regardless of size. The state minimum wage rate is used to determine the salary threshold for administrative, executive, and professional exemptions. Because the threshold is set at two times the state minimum wage, schools will need to ensure that all exempt employees earn at least $68,640 annually in 2025.
In addition, beginning on January 1, 2025, the following California jurisdictions’ minimum wage rates are also increasing: Belmont, Burlingame, Cupertino, Daly City, East Palo Alto, El Cerrito, Foster City, Half Moon Bay, Hayward, Los Altos, Menlo Park, Mountain View, Novato, Oakland, Palo Alto, Petaluma, Redwood City, Richmond, San Carlos, San Diego (city), San Jose, San Mateo (city), San Mateo County, Santa Clara, Santa Rosa, Sonoma (city), South San Francisco, Sunnyvale, and West Hollywood.
Schools in these locales should check their local ordinances to ensure they are complying with the increased wage and any notice, posting, and recordkeeping requirements.
Note: For private school teachers in California, there is a separate lower salary threshold that is not based on the state minimum wage.