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Are you paying your salaried employees correctly in 2025? In this short but powerful clip, employment attorney and Founding Partner Brian Koegle of Koegle Law Group breaks down the updated minimum salary requirements for exempt employees in California, and the consequences of falling short — even by $1. Whether you run a small to mid-sized business or support one as an HR professional, staying compliant with California’s wage and hour laws is non-negotiable. This update affects how you pay, classify, and manage salaried employees — including executives — under the new 2025 minimum wage increase. Key Takeaways: The 2025 minimum wage increase raises the bar for exempt employee classification. Exempt employees must now earn at least $68,640/year (based on a $16.50/hr minimum wage). If California increases minimum wage to $18/hour, the exempt salary threshold jumps to $74,880/year. Falling short — even by $1 — can reclassify an employee from exempt to non-exempt, triggering overtime, meal/rest period tracking, and more. If your payroll, HR practices, or job classifications aren’t aligned, your business could face legal risk. Learn how to protect yourself and make informed decisions moving forward. 👇 Chapters and timestamps below for easy navigation: ⏱️ CHAPTER MARKERS: 00:00 – Intro: Why Minimum Wage Impacts Salaried Employees 00:06 – What Is an Exempt Employee in California? 00:25 – The Two-Part Test: Salary Threshold + Duties 00:45 – 2025 Salary Minimum for Exempt Employees 01:27 – $1 Less? Here's What That Means Legally 01:51 – Final Thoughts: HR & Business Implications Need help reviewing your exempt classifications or wage practices? Contact Koegle Law Group today: KoegleLaw.com/contact 🔔 Don’t forget to like, comment, and subscribe for more updates on California employment law, HR compliance, and business best practices.