Revised 2019 California IWC Wage Order Posters Have Released
In addition to posting the California All-On-One Poster, California employers are required to post the Industrial Wage Commission Wage Order (IWC) that applies to their specific business. California has 17 different IWCs regulating the wages, hours and working conditions of employees in specific industries and occupations. Beginning in 2017, the Department of Industrial Relations (DIR) began the practice of updating the IWCs every two years. This year, the updated IWCs reflect the minimum wage rates and meals and lodging credits effective between 2017 and 2020.
Which Wage Order Applies to My Business?
Given the number of different wage orders and the array of traditional and evolving business models, it is not surprising that employers may be unsure which wage order applies to them. The DIR advises employers to follow these guidelines:
- Determine if the business is covered by an “industry” order. Industry orders include IWC Orders 1, 2, 3, 5, 6, 7, 8, 9, 10, 11, 12, and 13. Industry wage orders use the word “industry” in the title of the order.
- Determine which industry wage order applies to the business. A business’ industry classification is based on the main purpose of the business. Large businesses may conduct a variety of operations and it may appear initially that different industry orders could apply. However, when those operations are part of the main business, only one order will apply. The DIR suggests making a broad assessment of the principal purpose of the business based on simple observation and common sense.
EXAMPLE: IWC Order 7 (mercantile industry) applies to a bookkeeper in a retail store operation because retail stores are covered by an industry order.
- Every wage order that is not an industry order is an “occupational” order. An occupational wage order will only apply when a business is not covered by an industry order. Occupational wage orders include IWC Orders 4, 14, 15, 16 and 17. With the exception of IWC Order 17, occupational wage orders contain the word “occupation” in the title of the order.
EXAMPLE: IWC Order 4 (an occupational order) applies to a bookkeeper in an accounting firm because an accounting firm is not covered by an industry order.
- Distinct operations in multi-purpose businesses may be covered by different industry orders if they are operated for different business purposes, and the management is separately organized at all levels.
EXAMPLE: A retail department store (IWC Order 7) owns a restaurant (IWC Order 5) that is located on the department store premises but is operated as a separate corporate entity.
- EXCEPTION: IWC Order 5 (public housekeeping industry) applies to a business whose main purpose is providing meals, housing, or maintenance services. It can also apply to a business whose main purpose is incidental to operations of a separately classified enterprise or an enterprise not covered by an industry order.
EXAMPLE: A private school, which is not covered by an industry order, that provides dormitories or dining facilities incidental to school operations is covered by IWC Order 5.
Employers should also be aware that certain employees and occupations are exempt only from particular sections of the IWC wage orders. Some occupations are exempt for all wage orders. For example, teachers are exempt from sections 3-12 of IWCs 1-10, 15 and 16, whereas outside salespersons are exempt from all wage orders.
Where Can I Get More Guidance?
The DIR has a useful guide, “Which Wage Order?”, that can be downloaded for reference. The guide provides the definition of each industry or occupation covered by a wage order. The guide also contains a comprehensive list the types of enterprises covered by each industry wage order and an extensive list of the occupational capacities covered by each of the occupational wage orders. The Index of Businesses and Occupations is a useful tool to quickly associate an industry or occupation with the correct IWC order number. Of course, we’re experts in determining the appropriate IWC for any business and we welcome the opportunity to assist you!