Centricity Blog Important Reminders for the New Year

Hourly Minimum Wage Update Although there are some exceptions, almost all hourly (non-exempt) employees in California must be paid the minimum wage as required by state law. Effective January 1, 2016, the minimum wage in California is $10.00 per hour. Most employers in California are subject to both the federal and state minimum wage laws. Also, local entities (cities and counties) are allowed to enact minimum wage rates and several cities have recently adopted ordinances which establish a higher minimum wage rates for employees working within their local jurisdiction. The effect of this multiple coverage by different government sources is that when there are conflicting requirements in the laws, the employer must follow the stricter standard; that is, the one that is the most beneficial to the employee. Thus, since California's current law requires a higher minimum wage rate than does the federal law, all employers in California who are subject to both laws must pay the state minimum wage rate unless their employees are exempt under California law. Similarly, if a local entity (city or county) has adopted a higher minimum wage, employees must be paid the local wage where it is higher than the state or federal minimum wage rates. Exempt Minimum Wage Update Exempt employees in the administrative, executive or professional fields must be paid at least double the minimum hourly wage. Exempt employees must now earn an annual salary of at least $41,600 beginning January 1, 2016. It is up to employers to determine whether to [...]