California Increases Minimum Wage–Tips for Compliance

On September 25, 2013, Governor Jerry Brown signed into law a bill increasing the minimum wage from $8 per hour to $9 per hour effective July 1, 2014 and to $10 per hour effective January 1, 2016.

California employers who employ minimum-wage earners should put a plan into place to be in compliance with this law as of the applicable effective dates.  In addition, because California law requires that employees classified as exempt (and therefore not entitled to overtime) pursuant to the Executive, Administrative, and Professional Exemptions earn at least two times the minimum wage, employers must confirm that these salaried employees are paid at least $37,440 annually as of July 1, 2014 and at least $41,600 annually as of January 1, 2016.  Businesses that pay commissioned salespeople on a salary basis must also be sure that their salaries exceed 1.5 times the then-current minimum wage in addition to meeting the other requirements of this exemption.  Any other company policies tied to the minimum wage should also be reviewed to ensure compliance.

For assistance with this or any other employment-related matters, please feel free to contact Polina Bernstein or Diana Friedland at 818-817-7570.

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Bernstein & Friedland, P.C. is a boutique employment law firm in Los Angeles specializing in wrongful termination, discrimination, harassment, retaliation, and unpaid wage and overtime matters.  Please visit our website at www.laemploymentcounsel.com to learn more about us.

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