Monday, September 16, 2013

Minimum Wages to Increase to $10.00 per hour in California

In case you missed this post from  AALRR, we posted it below.  It is important that your human resources staff review and update HR documents that refer to employees' compensation plans. Plus, this change may influence current employees and cause a fury of questions. Does this change affect their compensation?  We recommend preparing now, before the change become law.  Need professional HR Consulting assistance to discuss this event?  Call today for a no obligation HR consultation.

Did you see the With the close of the 2013 legislative session on September 12, 2013, the California Legislature passed Assembly Bill 10 (“AB 10”), which will increase the state’s minimum wage to $9.00 per hour by July 1, 2014, and $10.00 per hour by January 1, 2016.  AB 10 now awaits signature by Governor Jerry Brown by October 13, 2013.  The Governor has promised he will sign the bill. The current California minimum wage is $8.00.  In addition to affecting the minimum rate of pay employers must pay employees for each hour worked, AB 10 will also impact other wage and hour rules that are based on the minimum wage such as the furnishing of hand tools and salary requirements to meet the exemptions from overtime for commissioned, executive, administrative and professional employees. - Jonathan Judge

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