With the new year comes changes in California, including an increase in the minimum wage.

As of Jan. 1, California’s minimum wage has increased to $16 per hour for all employers, up from $15.50 for all employees regardless of employer size in 2023.

The state reported that some cities and counties have a local minimum wage that is higher than the state rate.

As of April 1, fast food restaurant employees will have a $20 per hour minimum wage, while health care facility employees will have a minimum wage of $18, $21 or $23 — based on the type of facility — beginning on June 1.

Another group who has new rules for their pay as of Jan. 1 is sheepherders and goat herders. Their monthly minimum salary increases to $2,444.48 plus $1,830.75 required overtime pay for a total of $4,675.23 per month for employers who employ over 25 employees and $2,844.48 plus $1,179.88 in required overtime pay for a total of $4,024.36 for employers who employ 25 or fewer employees. Wages paid to sheepherders and goat herders may not be offset by meals or lodging provided by the employer.

The change in the minimum wage affects the minimum salary an employee must earn to meet one part of the overtime exemption test.

Exempt employees are not subject to the payment of overtime for hours worked. An employee must earn no less than two times the state’s minimum wage for full-time work to meet this initial requirement of the exemption test.

As of Jan. 1, employees in California must earn an annual salary of no less than $66,560 to meet this threshold requirement.

Employers must post the minimum wage order and the wage order applicable to their workplace at a worksite area accessible to employees. The wage orders can be downloaded and printed from the workplace postings page on the DIR website.

Employers must ensure that the wage rate is displayed on the employee’s pay stub, and that employees are paid at least the minimum wage even when employees are paid at piece rate.

Most employees in California must be paid at least the minimum wage per hour, with some exceptions explained in the FAQs here.