For large businesses (51 or more employees), an exempt employee must earn a salary of at least 1.75 times the minimum wage, or $49,831.60/year. These … 2021 California State Minimum Wage Law. For small businesses (1-50 employees), an exempt employee must earn a salary of at least 1.5 times the minimum wage, or $42,712.80/year. On January 1, California’s minimum wage will increase to $14 per hour for employers with 26 or more employees and $13 per hour for employers with 25 or fewer employees. California employers should take note of the following changes to state and local minimum wage laws—set to take effect on January 1, 2021—that will impact both nonexempt and exempt employees. California's threshold is currently $49,920.00 (annualized) for employers with 25 employees or less and $54,080.00 for employers with 26 employees or more. ** Hayward and San Carlos will impose new minimum wages as of January 1, 2021 *** San Diego’s minimum wage has been surpassed by the state minimum wage Mandatory Increase to Minimum Wage. On January 1, 2021, the minimum wage in California will increase. 2021 minimum wage changes by state Alaska Alaska’s minimum wage will increase to $10.34 based on the Consumer Price Index. California’s hourly minimum wages are to rise as scheduled Jan. 1, 2021, Gov. There is no separate rate for tipped workers. For instance, employers with 25 employees or less must pay a minimum wage of $13.00 per hour. * Novato has a third category of minimum wage, for very large businesses with 100+ employees. On January 1, 2021, the minimum wage for non-exempt employees in California will increase to $14 per hour for employers with 26 or more employees and $13 per hour for employers with 25 or less employees. Big changes await businesses with California employees in 2021. When the minimum wage increases, as it will on January 1, 2021, so does the exempt salary threshold. The wage increase will be dependent upon the number of persons employed by the employer. Arizona Arizona’s minimum wage will increase to $12.15 per hour starting in 2021 based on the Consumer Price Index. With the increase in the state minimum wage on January 1, 2021, the equivalent of two times the minimum wage of $13 per hour for small employers (25 employees or less) equals $54,080 per year, and two times the minimum of $14 per hour for large employers (26 employees or more) equals $58,240 per year to qualify for the white collar exemptions. The minimum wage for tipped employees will remain at $9. In 2021, this will be set at $15.24. Effective January 01, 2021, the following minimum hourly wages will be in effect for the State of California: Employers with 26 or more employees: $14.00 Employers with 25 or fewer employees: $13.00 Included below are City minimum wage … Beginning January 1, 2021, the following increased minimum wages and exempt employee salaries will go into effect: Statewide Minimum Wage On January 1, California’s minimum wage will increase to $14 per hour for employers with 26 or more employees and $13 per hour for employers with 25 or fewer employees. Gavin Newsom (D) said July 29.