California City Adopts Higher Minimum Wage

The City Council of Berkeley California recently adopted a City Minimum Wage Ordinance, 7-352-N.S., BMC Chapter 13.99. Under the ordinance, employers must pay employees no less than the minimum wage set forth for each hour worked in the geographic boundaries of the City. The minimum wage rate of $10.00 is effective October 1, 2014, with an increase to $11.00 on October 1, 2015 and an additional increase to $12.53 on October 1, 2016. Non-Profit agencies are exempt from the 2014 increase, but on October 1, 2015 must begin paying employees $11.00 per hour. Additionally, there are two (2) exceptions to the Berkeley Minimum Wage Ordinance listed in Section 13.099.130:

Employees who are on stand-by or on-call status according to the criteria established by the Fair Labor Standards Act (FLSA), 29 U.S.C. Section 201, and
Job training participants up to 25 years of age in youth training programs operated by Non-profit Corporations or governmental agencies.

It is important to note that employers cannot use an employee’s tips as a credit towards its obligations to pay the Berkeley minimum wage.

Section 13.99.606 covers an employer’s obligation for notice, posting and payroll record-keeping requirements. Employers must do the following:

Post the official Minimum Wage Notice in a conspicuous place at any workplace or job site in the City where employees work. The Notice(s) must be posted in any language spoken by at least five (5%) percent of the employees at the workplace or job site. Failure to post the Minimum Wage Notice subjects an employer to administrative citation, and
In writing at the time of hire provide each employee the employer’s name, address, and telephone number, and
Retain employee payroll records for a period of four (4) years, and
Allow the City access to employee payroll records (with appropriate notice and at a mutually agreeable time) so City officials can monitor compliance with the requirements of the ordinance.

Compliance Poster Company has several product options to fit Berkeley City employer’s needs.