You may have heard that Gov. Jerry Brown has signed the bill to increase the California minimum wage in two separate increments. The first will be from $8 per hour to $9 per hour effective July 1, 2014. Then on January 1, 2016, it will increase to $10 per hour. This comes during the fast food industry strikes to raise the federal wage. Some oppose this saying that it will hurt businesses and in turn, cause a reduction in jobs. There are always two sides with differing viewpoints but regardless, there are compliance recommendations that employers must follow.
ADP Payroll Services provided a great article on this topic including compliance recommendations in an email to their members. They explained: "The minimum wage increase also impacts the minimum salary requirements for employees who are exempt from overtime. To be classified as an exempt employee in California, very specific requirements must be met. The employee must, among other things, generally be paid a salary of no less than two times the state minimum wage. Assembly Bill 10 means that the salary requirement for exemption will increase to $720 per week (or $3120 per month) on July 1, 2014. On January 1, 2016, the salary requirement increases to $800 per week (or $3466.67 per month). For more information on exemptions, visit the Department of Industrial Relations website by clicking here.
Compliance Recommendations:
California employers must pay all non-exempt employees at least $9.00 per hour beginning July 1, 2014. In addition, employers must post a new minimum wage poster reflecting the increase by July 1, 2014. Once published, California's updated minimum wage poster will be available for download from the State & Federal Resources section of our website. Employers with exempt employees must also ensure that their salaries will meet the new minimums."
The sole purpose of this blog is to provide practical information concerning the subject matter and EMS is not rendering legal advice or other professional services related to this topic.
