California Minimum Wage - More to Think About

On January 1, 2017, the California minimum wage increased to $10.50 an hour, up from the current $10.00 an hour. Employers should review any pay practices that could be affected by the minimum wage increase.

Did you know that employers with under 25 employees have 1 additional year to implement state minimum wage increases? See the chart below:

Hourly Rate	26 Employees or More	25 Employees or Less
$10.50/hour	January 1, 2017	January 1, 2018
$11/hour	January 1,  2018	January 1, 2019
$12/hour	January 1, 2019	January 1, 2020
$13/hour	January 1, 2020	January 1, 2021
$14/hour	January 1, 2021	January 1, 2022
$15/hour	January 1, 2022	January 1, 2023

The City and County of Los Angeles, City of San Diego and City of Santa Monica have passed minimum wage ordinances that differ from the state requirements. We recommend you contact those cities directly for their current minimum wage requirements.

These special city ordinances apply not just to employers who are based in the cities, but also employees who work in the city. This can include salespeople who have accounts with the cities, technicians or repair people who visit an area within the city, attendance of work meetings at a site with the cities.

Do you have employees who are required to use their own tools? If so, the tool rate in California is now two (2) times the minimum wage rate, or $21.00 an hour. If you have employees using their own tools, make sure they are signing an acknowledgment to that effect. See Industrial Welfare Commission Order No. 8-2001

California Wage Reminders:

• The minimum threshold for salary exemption is now $43,680 annually

• The minimum wage for inside sales exemption rises to $15.76 per hour.

• Remember that the state minimum wage rate, not any city of county minimum age, governs exempt salary, inside sales and tool rate requirements.

• Employers should also review and ensure that they employment posters are up to date and reflect the new minimum wage.

• Remember that California employers must pay employees no less than the state minimum wage per hour for all hours worked.

• Even though the Federal minimum wage is lower, most California employers must abide by the higher California rate.

The obligation to pay the minimum wage can’t be waived by any agreement, including collective bargaining agreements.

Lauren Sims is the author and a Principal HR Consultant with eqHR Solutions.

Whenever you require Human Resources or Payroll advice or help to navigate the ever-changing landscape of California and Federal Employment Laws & Regulations, call us for a no obligation consultation.

eqHR Solutions provides tactical and strategic HR support, ADP payroll product training and payroll processing to all size businesses in Southern California.

Is your Management Team aware of the recent amendment to the California’s Fair Pay Act (CFPA?

California Assembly Bill 1676

Governor Jerry Brown recently signed California Assembly Bill 1676 into law. The new employment law bill prohibits employers from solely using an applicant’s salary history to justify wage disparity.

California AB 1676 amends California’s Fair Pay Act (CFPA) and says that salary history cannot justify a gender pay gap. There are a few limited exceptions, such as a seniority or a merit system, but otherwise, it states that a gender-related pay gap is presumed to be discriminatory. AB 1676 also significantly increases the criminal penalties for illegal pay scales.

The law stops short of prohibiting employers from asking about salary history during the hiring process, however, employers still need to tread carefully when making offers to candidates.  When prior salary is known, employers should ensure that the pay offered is equal to others in the same or similar position.

As a reminder, CFPA differs from the Federal Equal Pay Act in the following ways:

• Broadens the bands of comparison of positions:
• Federal: Pay must be equal among employees in the same position
• California: Pay must be equal among “substantially similar” employees when viewed as a composite of skill, effort, and responsibility
• Broadens the geography:
• Federal: Pay must be equal among employees in the same position in the same location
• California: Compares employees across locations
• Employers in California must explain “entire wage differentials,” meaning total compensation, not just base pay.
• Employers in California will also be on the hook for attorneys’ fees for prevailing plaintiffs.

Employers should develop the following best practices:

• Require supervisors and managers, who make decisions about compensation, to document the reasons employees are paid what they are paid
• Create job descriptions, detail the skill required and responsibility given
• Document seniority, merit, quantity and/or quality of work
• Train supervisors and managers about the new law.

Lauren Sims is the author and a Principal HR Consultant with eqHR Solutions.

Whenever you require Human Resources or Payroll advice or help to navigate the ever-changing landscape of California and Federal Employment Laws & Regulations, call us for a no obligation consultation.

eqHR Solutions provides tactical and strategic HR support, ADP payroll product training and payroll processing to all size businesses in Southern California.

Complying with the Requirements of CA AB 2337

Employee Notifications Required for Domestic Violence Leave

The current law requires employers with 25 or more employees to provide protected leave for domestic violence, sexual assault or stalking and employees are entitled to mandatory paid sick days, and unpaid “leaves of absences” for this reason.

Also, employees that are victims of domestic violence, sexual assault or stalking can use accrued mandatory paid sick leave when they require time off to appear in legal proceedings or for medical treatment.

On September 14, 2016, Governor Jerry Brown signed AB 2337 into law which expands the employer notice requirements regarding domestic violence employee.

Despite the protections under current law, many employees remain uninformed about their employment-related rights when it comes to domestic violence.

This new bill is effective July 1, 2017, and requires employers of 25 or more to provide written notice to employees of their rights to take protected leave for domestic violence, sexual assault or stalking.

Employers must inform each employee of his or her rights upon hire and at any time upon request.

We recommend employers review their handbook policies and ensure that employees’ existing rights to take time off for domestic violence, sexual assault or stalking are detailed in the domestic violence leave policy.

The notification policy must specifically state that: Employees that are victims of domestic violence, sexual assault, or stalking may take time off from work to:

1. Seek medical attention for injuries;
2. Obtain services from a domestic violence shelter, program, or rape crisis center;
3. Obtain psychological counseling;
4. Participate in safety planning and take other actions to increase safety, including temporary or permanent relocation.

Employers are prohibited from discharging, discriminating, or retaliating against an employee because of the employee’s known status as a victim of domestic violence, sexual assault, or stalking or for taking domestic violence leave.

Lauren Sims is the author and a Principal HR Consultant with eqHR Solutions.

Whenever you require Human Resources or Payroll advice or help to navigate the ever-changing landscape of California and Federal Employment Laws & Regulations, call us for a no obligation consultation.

eqHR Solutions provides tactical and strategic HR support, ADP payroll product training and payroll processing to all size businesses in Southern California.