Ca Exempt Employee, Making Less Than Ca Exempt Minimum Wage.

I work for a relatively small company, with about 250-300 employees. I am an exempt, salaried employee.

A few days ago when I was hanging up our 2025 compliance posters, I saw that minimum wage went up in 2025. CA salaried minimum wage is twice the state minimum wage for non-exempt employees, so I realized that would bump up my pay, too.

I checked our payroll system to see if my salary changed. It hadn’t. I was making less than minimum wage.

I let my manager know about this, and he was also puzzled. He reached out to our HR department, who told him that when I receive my annual review in February, when they decide what my “merit raise” will be, they will calculate my new salary, and if it does not meet the minimum wage requirements they will just put me right at minimum wage. I would then receive backpay through Jan 1st.

My main concern is that my HR department didn’t even notify me that I was making below minimum wage and when/how this would change. There’s nothing in writing, just a verbal statement that I’ll be receiving back pay after I found out what was happening by myself. I would never have know had I not looked into it.

Also - are they even allowed to call it a merit increase if either way I’m going to be making the exact same dollar amount? If my wages technically changed on January 1st then the merit wage should be on top of that, right?

How on earth is this legal? How are they able to get away with paying me less than minimum wage, without my knowledge, with nothing but a vague promise that it’ll change next month? This seems shady as hell to me.

Any advice helps. Thank you!!!