California law gradually increases the statewide minimum wage and requires an automatic increase in the minimum wage of up to 3.5% to account for any increase in inflation over 7% as determined by the Consumer Price Index.  On August 1, 2024, the California Department of Finance Director officially certified that beginning January 1, 2025, California’s minimum wage will increase from $16 per hour to $16.50 per hour for all employers, regardless of size.  This hourly increase also affects the minimum salary requirements for full-time exempt employees, which currently is $66,560 per year in gross wages ($5,546.67 per month). Beginning January 1, 2025, the minimum salary for a full-time exempt employee will be $68,640 per year in gross wages ($5,720 per month).