Wage and Hour laws are complicated. You have federal, state and city laws the rules that are most favorable to the employee is the rules that the company must follow. What makes a little more difficult is the minimum wage might be higher at the local level, but the rule for employee classification of exempt goes back to the state level. The rules in California are very different from the rest of the US. Employers could have 3 sets of rules to be in compliance. Running a business is very complex, if your business is in multiply Cites, you have a different rule to follow. San Francisco and San Jose have higher minimum wages, which in turns increase the salary test of an exempt employee. San Diego has passed legislation to increase the minimum wage in April of 2015. Instead of the state setting the rules the Mayors and City Supervisors enacting local laws are dictating employment law changes.