July 1st California’s Minimum Wage Increases

In just one week California’s minimum wage increases by $1.00 from $8.00 to $9.00 per hour. This increase shouldn’t come as a surprise because it takes time to implement procedures to remain in compliance with relevant state and federal labor laws. In the event you did not know about the minimum wage increase we have outlined some tips for remaining in compliance.

Actions Employers Need to Take to Be Compliant

  1. Get ready to adjust payroll to implement the increase. This needs to be performed in all categories: base rate, overtime rate, and meal and split shift premiums.
  2. Take into consideration any workers classified as exempt under the inside salesperson exemption. These are the workers who fall under IWC’s 4 and 7. They must earn at least $13.51 for all hours worked (1.5x the increased minimum wage rate), and that more than half of the compensation represents commissions.
  3. Make the necessary confirmation that all exempt salaried employees begin earning at least $37,440, twice the increased minimum wage on July 1, 2014.
  4. Considering changes to existing commission plans to account for the minimum wage increase? If so, make sure to put any changes you make in writing and get workers to sign an acknowledgment form. Keep that form in the workers file.
  5. There is also the Wage Theft Prevention Act of 2011 requirement to provide each employee with a written notice containing specified information at the time of hire. These notices should be filled out with the correct rate, accounting for the increase. Although not required, consider providing a new pay notice to existing employees also. These notices should be kept in the employees file.
  6. For those clients that have not updated their California All-On-One poster now is the time to do so. To purchase your updated CA All-On-One poster click here.
  7. The IWC’s have also changed for 2014. They must be posted in the workplace where employees can easily read them. Where possible, consider displaying the California All-On-One poster and applicable IWC in close proximity to one another.

Preparation and planning will help your business remain in compliance as these changes become effective. Compliance Poster Company assists businesses with labor and employment compliance. Give us a call today if you have any questions about the California minimum wage increase requirements.

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