California’s Rising Minimum Wage Has A Trap For The Unwary

Everyone’s payroll service should already be on top of this – but, if not, here’s your reminder: Effective July 1, 2014, California’s minimum wage goes up from $8.00/hour to $9.00/hour.

There is a trap for the unwary employer with low paid exempt employees. To be exempt from overtime, an employee must, among other criteria, make a monthly salary equivalent to two times the state minimum wage for full-time (i.e. 40 hours per week) employment. At the moment, that is a monthly salary of $2,773.33 ($33,280 annually). As of July 1, an exempt employee must earn at least $3,120.00 ($37,440 annually).

The employer who fails to make that raise will have converted his or her exempt employee into non-exempt, with all the overtime, meal & rest period, and record keeping requirements that follow.

An employer with questions about wage & hour, or other employment law, issues may contact either Jim Parton jparton@partonsell.com or Frank Conway fconway@partonsell.comwith the firm’s labor and employment practice.

Everyone’s payroll service should already be on top of this – but, if not, here’s your reminder: Effective July 1, 2014, California’s minimum wage goes up from $8.00/hour to $9.00/hour. There is a trap for the unwary employer with low paid exempt employees. To be exempt from overtime, an employee must, among other criteria, make […]