Because of changes in employment law, and minimum wages, the employer needs to review their exempt employees to make sure they still meet the salary test to be exempt. Below is a quick summary of the Federal, California, and the 13 states that have rates above the federal rates. Keep in mind in CA the salary test is 2 times the minimum wage. SF and SJ are going to be higher based on their minimum wage.
2013 SEES RISE IN MINIMUM WAGES
To be exempt from FSLA employee have to meet the salary test. Which is tied to the minimum wage. Employers should review compensation rates for both exempt and nonexempt employees, to ensure compliance with current legal thresholds. Set forth below are rates at the federal level, and for the states and localities that exceed federal levels for the most common job categories.
| FEDERAL | MINIMUM COMPENSATION | CALIFORNIA |
| Nonexempt | $7.25/hour | $8.00/hour |
| San Francisco | $10.55/hour (an increase from 2012) | |
| San Jose | $10.00/hour (effective approximately Feb./Mar. 2013) | |
| Executive Professional or Administrative | $1971.66 monthly on a salary basis | $2,773.33/month on a salary basis |
| Computer | $27.63/hour | $39.90/hour, $6,927.75/month or $83,132.93/year (increase from 2012) |
| Highly Compensated | $100,000 total compensation (including minimum $455 minimum weekly salary or fee) | not in CA |
| Licensed practicing Medical Doctor or Attorney; Teacher | None | $72.70/hour (an increase from 2012) |
| Outside Sales | None | |
| In the following jurisdictions, rates higher than the federal rates prevail. | ||
| ALASKA | Nonexempt | $7.75/hour |
| ARIZONA | Nonexempt | $7.80/hour (an increase from 2012) |
| COLORADO | Nonexempt | $7.78/hour (an increase from 2012) |
| CONNECTICUT | Nonexempt | $8.25/hour |
| FLORIDA | Nonexempt | $7.79/hour (an increase from 2012) |
| ILLINOIS | Nonexempt | $8.25/hour (increase currently under consideration) |
| MAINE | Nonexempt | $7.50/hour |
| MASSACHUSETTS | Nonexempt | $8.00/hour |
| MICHIGAN | Nonexempt | $7.40/hour |
| MISSOURI | Nonexempt | $7.35/hour (an increase from 2012) |
| MONTANA | Nonexempt | $7.80/hour (an increase from 2012) |
| NEVADA | Nonexempt | $7.25/hour (if qualifying health benefits available) |
| $8.25/hour (all others) (increase may be announced in April 2013) | ||
| NEW JERSEY | Nonexempt | $7.25/hour (increase to $8.50/hour currently under consideration) |
| NEW MEXICO | Nonexempt | $7.50/hour |
| OHIO | Nonexempt | $7.85/hour (only for employers with gross revenue of ≥$288,000/yr) (increased from 2012) |
| OREGON | Nonexempt | $8.95/hour (an increase from 2012) |
| RHODE ISLAND | Nonexempt | $7.75/hour (an increase from 2012) |
| VERMONT | Nonexempt | $8.60/hour (an increase from 2012) |
| WASHINGTON, DC | Nonexempt | $8.25/hour |
| WASHINGTON STATE | Nonexempt | $9.19/hour (an increase from 2012) |
| Outside Sales Exemption | guaranteed salary, commission, or fee | |