This year saw the hourly rate of California workers rise to $8.00, a rise of over 13% thanks to the recently enacted statutes of California employment law. Because of this California now has the highest hourly rate in the USA.
In addition, workers under California employment law provisions will also receive an increase in meal and lodging credits by the same percentage as the minimum wage increases. Be aware though, that under employers governed by California employment law, they can use the increased amounts for meals and lodging to count against minimum wage when they provide workers with meals/lodging.
Unfortunately, if you are a federal employee and work outside California, your wage remains at $5.15/hour. That bites!
The hottest issue in California employment law is the payment of overtime. This is an area of California employment law that is pretty much akin to stepping on a land mine. Why? Because there are two classes of workers under California employment law - exempt and non-exempt - and failure to know the difference can cost business big bucks.
If an employee entitled to overtime is treated as exempt, they could be eligible to a nice chunk of change for overtime pay once the dust settles.
Is there a difference when paying an exempt versus non-exempt worker? Under California employment law, a non-exempt worker is subject to all pay rules set up by the Industrial Welfare Commission - that includes overtime. In other words, a non-exempt employee must be paid all overtime hours worked.
Check the California employment law codes to see which category you come under or call your local Department of Labor.
Basically, the category under which an employee falls is based upon their level of responsibility or their professional status. Whether they are receive a wage or salary, or their job title does not have anything to do with it.
Licensed professionals such as architects, doctors, lawyers, certified public accountants and engineers tend to be classed as exempt as are those in middle management who have the appropriate responsibilities. The responsibilities would include the ability to hire and fire, train employees and who spend less than 50 percent of their time performing the same duties as their employees.
The other two categories considered to be exempt are outside sales reps and those who create/formulate business policies for their organizations. Again, if you have any questions about exempt versus non-exempt employees and how to make sure they are paid according to the law, check with the nearest Department of Labor office. Save yourself some time and grief in the long run.
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