Tag Archives: California

California Employers — Watch Out For These Common Wage And Hour Problems

California’s wage and hour laws are complicated and is constantly changing.  As a result, employers often find themselves running afoul of one (or more) of these laws and facing potential liability.

To mitigate your risk of a wage claim, we recommend that employers regularly audit their wage and hour practices to ensure compliance with California law.  When conducting this audit, make sure you have a clear understanding of the following common problems relating to compensating non-exempt employees:

Overtime And Double Time For Non-Exempt (Hourly Paid) Employees

  • California employers must pay overtime (1.5 times the employee’s regular rate of pay) to non-exempt employees as follows:
    • For all hours worked over eight hours in a workday or 40 hours a week
    • The first 8 hours worked on the 7th consecutive day of work in a workweek
  • California employers must pay double time (2 times the employee’s regular rate of pay) to non-exempt employees as follows:
    • For hours worked over 12 hours in any workday
    • For hours worked over 8 hours on the 7th consecutive day of work in a workweek

Calculating The Regular Rate Of Pay

  • The regular rate of pay is the employee’s actual rate of pay, which includes the employee’s regular hourly earnings (i.e. hourly rate of pay) plus any additional compensation that must be included in the regular rate of pay – including:
    • Commission payments;
    • Piece rate payments;
    • Non-discretionary bonuses (e.g. productivity bonus, performance bonus, attendance bonus, longevity bonus, cost-of-living bonus);
    • Awards or prizes won for quality, quantity or efficiency;
    • Shift differentials;
    • Premiums paid for hazardous, arduous or dirty work;
    • Non-cash wages in the form of goods, board, or lodging;
    • Pay for non-productive work hours (e.g. rest breaks, waiting time, attending meetings); and
    • Lump sum on-call payments.
  • Payments excluded from regular rate of pay:
    • Premium (or extra) pay for daily or weekly overtime;
    • Premium pay for work on weekends, holidays, regular days of rest or the sixth or seventh day of the workweek (if it is at least 1.5 times the rate for work performed during non-overtime hours on other days);
    • Premium pay for work outside the agreed to hours (if it is at least 1.5 times the rate for work performed during the agreed to hours);
    • Discretionary bonuses;
    • Gifts;
    • Certain payments that are not made as compensation for hours of work (e.g. vacation pay, paid time off, sick time, and reimbursement for business expenses);
    • Payments to a bona fide profit-sharing plan or trust or a bona fide thrift or savings plan;
    • Irrevocable contributions to employee health and welfare plans; and
    • Certain stock options, appreciation rights and purchase programs.

Split Shift Premiums

  • Under the split shift premium rule, an employee must receive one hour’s pay at no less than the minimum wage rate for the time between shifts.  An employer can use any hourly amount the employee earns above minimum wage to offset the split shift requirement.

Reporting Time Pay

  • “Reporting time pay” is partial compensation for employees who report to work expecting to work a specified number of hours and who are deprived of that amount because of inadequate scheduling or lack of proper notice by the employer. The provisions of the law regarding reporting time pay are as follows:
    • Each workday an employee is required to report to work, but is not put to work or is furnished with less than half of his or her usual or scheduled day’s work, he or she must be paid for half the usual or scheduled day’s work, but in no event for less than two hours nor more than four hours, at his or her regular rate of pay.
    • If an employee is required to report to work a second time in any one workday and is furnished less than two hours of work on the second reporting, he or she must be paid for two hours at his or her regular rate of pay.

Rest Periods

  • Employers are required to provide a 10-minute, duty-free rest break during each period of four hours (or major fraction thereof, i.e. 2 hours) worked by an employee.  Employers are not required rest periods when an employee’s total daily work time is less than 3½ hours.  This means that employees are entitled to rest periods as follows:
    • An employee who works more than 3½ hours and up to 6 hours is entitled to 1 rest period
    • An employee who works more than 6 hours and up to 10 hours is entitled to 2 rest periods
    • An employee who works more than 10 hours and up to 14 hours is entitled to 3 rest periods
    • An employee who works more than 14 hours and up to 18 hours is entitled to 4 rest periods

Meal Periods

  • Any employee who works more than five hours in a day must be provided with a 30-minute unpaid, duty free meal period.   The meal period must be provided no later than the end of the employee’s 5th hour of work (in other words, before the start of the employee’s 6th hour of work).
    • If an employee’s entire workday is completed in six hours or less, the meal period may be waived by mutual consent of the employer and the employee. This consent should be in writing and signed by both the employee and the employer. If the employee’s workday is more than 6 hours, then the meal period cannot be waived.
  • Any employee who works more than ten (10) hours in a day must be provided with a second unpaid, duty free meal period, also at least 30 minutes in duration. The second meal period must begin no later than the end of an employee’s 10th hour of work (i.e. before the employee works more than 10 hours).
    • If the total workday is 12 hours or less, the second meal period may be waived by mutual consent of the employer and employee, but only if the first meal period was taken. If an employee works more than 12 hours in a day, the second meal period may not be waived (except employees in the health care industry may voluntarily waive their second meal period after 12 hours).

Timekeeping Requirements

  • Employers must record the beginning and end of each workday and the beginning and end of unpaid meal or other unpaid periods.

Wage Theft Protection Act Notice

  • All non-exempt employees must be provided with a Wage Theft Prevention Notice at time of hire and within 7 days of a change.  A sample notice is available here.

Cellphone Reimbursement (** also applies to exempt employees)

  • Employers must reimburse employees who use personal cellphones for business purposes for both voice and data fees incurred for business purposes.

Paid Sick Leave (** also applies to exempt employees)

  • Employers must provide employees with paid sick leave in accordance with state or, if applicable, local law.

Pay Stub Requirements (** also applies to exempt employees)

  • Employers must provide all employees with an itemized statement of wages that includes the following information:
    • Gross wages earned;
    • Total hours worked by the employee (not required for salaried, exempt employees);
    • For piece-rate employees, the number of piece-rate units earned and any applicable piece rate if the employee is paid on a piece-rate basis, and the total hours of compensable rest and recovery periods, the rate of compensation, and the gross wages paid for those periods during the pay period, and the total hours of other nonproductive time, the rate of compensation, and the gross wages paid for that time during the pay period;
    • All deductions (all deductions made on written orders of the employee may be aggregated and shown as one item);
    • Net wages earned;
    • The inclusive dates of the period for which the employee is paid;
    • The employee’s name and the last four digits of his or her social security number or an employee identification number other than a social security number;
    • The name and address of the legal entity that is the employer; and
    • All applicable hourly rates in effect during the pay period, and the corresponding number of hours worked at each hourly rate by the employee.
  • In addition, all employee paychecks must list the address of a specific location within the state where the check can be cashed without a fee.

Vacation Pay (** also applies to exempt employees)

  • Forfeiture of vacation is prohibited in California
    • “Use it or lose it” policies are not permitted
    • All accrued but unused vacation must be paid upon termination

Final Paychecks (** also applies to exempt employees)

  • All employees must receive their final wages within the following timeframe:
    • Immediately upon involuntary termination
    • Within 72 hours if employee resigns without notice
    • On last day of work if employee resigns with at least 72 hours’ notice
  • All wages “due and owing” must be paid with the final wages, otherwise waiting time penalties are assessed.  This includes accrued, unused vacation and/or meal/rest period premiums
    • Commissions or other performance-based pay must be paid as soon as it can be calculated, regardless of when it otherwise would be paid.
  • No deduction may be taken from final paychecks unless legally mandated, authorized in writing by the employee, or for a loss attributable to the employee’s dishonest or willful act or gross negligence (but only if the employer is absolutely positive that it can be proven that the employee was not simply negligent). No balloon deductions for payoffs of employer loans to employees.

Addressing Some of the Confusion Regarding California’s New Salary History Ban

California employers – Are you confused about what information you are (and are not) allowed to request under California’s new salary history ban law?  Below are answers to some common questions regarding compliance with these new requirements.

What is the new salary history ban?

California’s salary history ban is set forth in newly created California Labor Code section 432.3. Under this code section, California employers are prohibited from “relying on the salary history information of an applicant for employment as a factor in determining whether to offer employment to an applicant or what salary to offer an applicant.”  In other words, California employers cannot ask job applicants about their salary histories.

Can a job recruiter provide an employer with a candidate’s salary history?

No.  The law expressly prohibits employers from seeking an applicant’s salary history “through an agent,” which would include an outside recruiter.  To protect themselves, employers should take steps to ensure that their recruiters (whether internal or external) are not seeking salary history information from candidates as your company can be held liable for these violations.

Can I ask an applicant what benefits they received from a previous employer?

No.  The law expressly prohibits employers from seeking an applicant’s salary history information, which includes “compensation and benefits.”  This definitely means that employers cannot ask an applicant about the value of a benefit package.  Whether an employer can ask if there are any benefits the applicant would be “losing” by accepting a position with your company is an issue that is yet to be determined.  The law is not clear on the scope of the information a company is prohibited from seeking relating to benefits.

Can I still verify an applicant’s salary history after an offer of employment has been extended?

Yes.  The state law does not prohibit employers from contacting an applicant’s previous employer(s) and verifying salary history after an offer of employment has been made.  However certain localities (like San Francisca) prohibit employers from disclosing the salary history of a current or prior employee to a prospective employer with having first obtained written authorization from the employee.

Am I required to provide applicants with a salary range for a position?

Yes – if the applicant makes a “reasonable request” (either oral or written), the employer is required to provide a “pay scale” for that position to the applicant.  In light of this requirement, it is recommended that employers prepare pay scales for positions for which they are hiring prior to posting open positions.  When explaining this pay scale to applicants, consider explaining to the employee that the salary for the position will be based on factors such as qualifications and experience.  Finally, all requests for a pay scale (and the company’s response to those requests) should be documented.

What if an applicant voluntarily provides his salary history?

The law does not prohibit applicants from “voluntarily and without prompting disclosing salary history information to a prospective employer.”  If this does happen, it is recommended that employers document the voluntary disclosure, but still take steps to ensure that this disclosure is not the sole factor used in determining the individual’s salary if that individual is hired.

NEW CASE: $4.5 Million Reasons to Engage In the Interactive process (and Provide reasonable Accommodation) to your disabled employees

In a recent California case, employers nationwide are reminded of the importance of engaging in the good faith interactive process and attempting to provide reasonable accommodation to a disabled employee.  California jurors, in a special verdict, recently awarded a disabled former employee a $4.5 million verdict for violating the California Family Rights Act (CFRA) and California Fair Employment and Housing Act (FEHA) when the employer terminated the employee while she was out on CFRA leave.

The Case

In 2015, the former employee went out on medical leave (CFRA leave) for a broken arm.  Shortly after going out on leave, the former employee was diagnosed with major depression and her treating physician advised her employer that she would require more time off than the 12 weeks provided under the CFRA.

Rather than engage in the interactive process with the employee to try to find a reasonable accommodation (or extend the employee’s leave), the employer terminated the employee when her 12 weeks of CFRA leave expired.  The former employee filed a lawsuit against her employer claiming that she was fired because of her physical and/or mental disabilities, and in retaliation for her taking protected leave for medical treatment.  The employee also claimed that her employer had violated FEHA by failing to engage in the interactive process with her about her disability and by failing to provide her with reasonable accommodation.

The jury agreed with the plaintiff and awarded her the $4.5 million verdict ($546,000 for back and front pay, over $1.9 million in compensatory damages and $2.6 million in punitive damages).

Take Home for Employers

While a California case, this case highlights to all employers the importance of working with employees who require accommodation for a disability (i.e. the importance of engaging in the interactive process).  This case might have been brought under California law, but there are federal laws (i.e. the Americans with Disabilities Act and Family Medical Leave Act) that impose the same requirements on employers.  Under these laws, employers are required to engage in the interactive process to determine what reasonable accommodations are necessary so an employee can perform essential job functions.

The following are important steps to follow when engaging in the interactive process with an employee:

  • Document!!!!! When an employee requests a leave of absence or a reasonable accommodation, document that request.  Also, provide the employee an acknowledgement of the request in writing, to document that the request was received.
  • Talk to the employee about the request. Sit down with the employee and discuss the request and possible accommodation(s) that the company can offer.  Request additional information from the employee (or his healthcare provider) where necessary in order to determine exactly what the employee can (and cannot) do.
  • Document (again)!!!!! After these conversations with the employee, send the employee a confirming memorandum summarizing your conversation, outlining accommodations discussed, and detailing any action items that both the employee and company need to perform in order to continue with the process.
  • Complete the company’s action items AND follow up with the employee. Be sure to complete any action items assigned to the company in the confirming memorandum.  Also, follow up with the employee to check the status of his action items.  Do not assume that the employee will simply complete them, periodically touch base with the employee.  And, as always, document both the company’s actions, but also the follow up conversations with the employee.
  • Repeat this process. This process will need to be repeated until an accommodation is reached or a determination is made that no accommodation is possible.  Remember, under the ADA (and FEHA), a leave of absence is considered a reasonable accommodation.

Remember, the interactive process is a continuing process with your disabled employees.  Just because an accommodation is reached, that does not end the employer’s obligation to engage in the interactive process.  Employers need to follow up with their employees periodically and verify that the selected accommodation is still working for the employee (i.e. enabling the employee to perform the essential functions of the position).  If it isn’t, then the company will need to start the interactive process all over again.

Is The Minimum Pay Required For Commissioned Employees To Qualify For An Overtime Exemption Increasing In Your State In 2018?

While the minimum pay required for commissioned employees to qualify for an overtime exemption is not changing in 2018, there are several states where the minimum pay requirements for a “commissioned employee overtime exemption” are increasing.

These increases (i.e. in California, Colorado, Minnesota, Oregon, Washington, and Washington DC) are occurring because the pay an inside or commissioned salesperson must receive to qualify for the inside or “commissioned” sales exemption (as established under state law) are scheduled to increase in 2018 (December 31st for New York employers).

Under the Fair Labor Standards Act (FLSA), in order for a commissioned salesperson to qualify for the FLSA’s 7(i) overtime exception (Commissioned Salesperson Exemption), the following three conditions must be met:

  1. The employee must be employed by a retail or service establishment, and
  2. The employee’s regular rate of pay must exceed one and one-half times the applicable minimum wage for every hour worked in a workweek in which overtime hours are worked, and
  3. More than half the employee’s total earnings in a representative period must consist of commissions.

Unless all three conditions are met, the Commissioned Salesperson Exemption is not applicable, and overtime premium pay must be paid for all hours worked over 40 in a workweek at time and one-half the regular rate of pay.

The below table sets forth the changes to the minimum salary requirements for exempt employees in these states.  In those instances where the state minimum salary requirements are lower than the above-listed FLSA requirements, the higher salary threshold applies for employers who are subject to FLSA in order for employees to qualify for an exemption under the FLSA. Continue reading Is The Minimum Pay Required For Commissioned Employees To Qualify For An Overtime Exemption Increasing In Your State In 2018?

Check to See if the Minimum Required Salary For Exempt Employees is Increasing In Your State

While the minimum salary requirements for “white collar” employees (executive, administrative, or professional employees) is not changing in 2018 (at least not until/unless the Department of Labor announces a new Overtime Rule), there are several states where the minimum salary requirements for exempt employees is increasing in 2018 (December 31st for New York employers).

These increases (i.e. in Alaska, California, Colorado, Maine, New York, and Oregon) are occurring because the minimum exempt salary rates for these employees (as established under state law) are scheduled to increase in 2018 (December 31st for New York employers).

Under the Fair Labor Standards Act (FLSA), the minimum salary requirements for white collar employees is as follows:

Payment Schedule Minimum Salary
Weekly $455
Bi-Weekly $910
Semi-Monthly $985.83
Monthly $1,971.66
Annual $23,660

Continue reading Check to See if the Minimum Required Salary For Exempt Employees is Increasing In Your State

NEW POSTER — California Publishes New Mandatory Transgender Rights Poster

As previously reported (in NEW LAW: New Requirements for California Sexual Harassment Training) aside from increasing California’s sexual harassment training requirements to include discussing harassment based on gender identity, gender expression, and sexual orientation and including practical examples inclusive of harassment based on gender identity, gender expression, and sexual orientation, Senate Bill 396 also requires all California employers post a workplace poster related to transgender rights. 

In order to help employers comply with this new posting requirement, the California Department of Fair Employment and Housing (DFEH) recently published the English and Spanish language versions of the poster.  Starting January 1, 2018, the “Transgender Rights in the Workplace” poster (as with all DFEH-mandatory posters) must be posted “in a prominent and accessible location in the workplace” where it can be “easily seen and read by all employees and job applicants.”   In addition, if ten percent or more of a company’s workforce speaks a language other than English, the poster must also be displayed in that language (or languages).

It is recommended that all California employers download the new poster and display it in the workplace as soon as possible.

NEW LAW: California Changes Nature of Commission Arrangements for Hair Stylists

With the passage of Senate Bill 490, California has dramatically altered how salon owners and barbershops can pay their stylists/barbers.  Under this new law, paying a stylist/barber on a commission-only basis or on a minimum wage plus commissions basis is no longer considered “commission-based pay” for the purpose of qualifying those employees for a “commissioned employee overtime exemption.”

Under the new law, a stylist/barber’s wages only qualify as commissions when both of the following requirements are met:

  1. the employee’s base hourly rate is at least two times the state minimum wage in addition to commissions paid; and
  2. the employee’s wages are paid at least twice during each calendar month on days designated in advance by the employer as regular paydays.

This means that starting January 1, 2018, a stylist/barber would need to earn an hourly rate of at least $22.00 per hour (2x the California minimum wage for large employers, or $21 per hour for small employers) in order for an “incentive pay” to qualify as commissions.  In addition, these employees must be paid the hourly rate for all hours worked – including nonproductive time and breaks.

The new law does not require that all stylists/barbers are paid in this fashion.  This is simply the only way these employees can qualify for the commissioned employee exemption.  Instead, these employees can simply be paid a flat hourly rate (with or without receiving any incentive pay), but the employee would be entitled to receive overtime pay in accordance with California law and would still need to be paid for nonproductive time and breaks.

If a salon/barber shop owner chooses to pay its stylists/barbers through an hourly rate and commissions, then there will need to be a written commission agreement that is compliant with California law.

This new law goes into effect on January 1, 2018.  It is recommended that all salon/barber shop owner review how their stylists/barbers are paid and verify that their compensation is compliant with California law.

2018 MINIMUM WAGE CHECK-UP

With various cities and counties having enacted local minimum wages and 18 states (Alaska, Arizona, California, Colorado, Florida, Hawaii, Maine, Michigan, Minnesota, Montana, Missouri, New Jersey, New York*, Ohio, Rhode Island, South Dakota, Vermont, Washington) are increasing their own minimum wages on January 1st (December 31st for New York), employers should take time to verify that they are meeting the minimum wage requirements of their state/city/county.

The below chart sets forth the minimum wage effective January 1, 2018.

employer PAYS $1.50/hr towards medical benefits$11.91

Federal $7.25
State City/County  Amount?
Alabama  $7.25
Alaska*  $9.84
Arizona* — all cities/counties except …  $10.50
Flagstaff* $11.00
Arkansas  $8.50
California* — all cities/counties except …                                  small employer (25 or less) $10.50
large employer (26 or more) $11.00
Berkeley  $13.75
Cupertino* $13.50
El Cerrito*  $13.60
Emeryville                                           small employer (55 or less) $14.00
large employer (56 or more) $15.20
Los Altos* $13.50
Los Angeles                                         small employer (25 or less) $10.50
large employer (26 or more) $12.00
Malibu                                                  small employer (25 or less) $10.50
large employer (26 or more) $12.00
Milpitas* $12.00
Mountain View* $15.00
Oakland $12.86
Palo Alto* $13.50
Pasadena                                             small employer (25 or less) $10.50
large employer (26 or more) $12.00
Richmond*                                             employer does NOT pay $1.50/hr towards medical benefits $13.41
employer PAYS $1.50/hr towards medical benefits $11.91
Sacramento*                                      small employer (100 or less) $10.50
large employer (101 or more) $11.00
San Diego $11.50
San Francisco $14.00
San Jose* $13.50
San Leandro $13.00
San Mateo*                                                 For-profit organizations $13.50
Non-profit organizations $12.00
Santa Clara* $13.00
Santa Monica                                       small employer (25 or less) $10.50
large employer (26 or more) $12.00
Sunnyvale* $15.00
Los Angeles County                            small employer (25 or less)

unincorporated areas                            large employer (26 or more)

$10.50

$12.00

Colorado* $10.20
Connecticut $10.10
Delaware $8.25
Florida* $8.25
Georgia $7.25
Hawaii* $10.10
Idaho $7.25
Illinois — all cities/counties except … $8.25
Chicago $11.00
Cook County

(except for the Village of Barrington)

$10.00
Indiana $7.25
Iowa $7.25
Kansas $7.25
Kentucky $7.25
Louisiana $7.25
Maine* — all cities/counties except … $10.00
Portland $10.68
Maryland — all cities/counties except … $9.25
Montgomery County $11.50
Prince George’s County $11.50
Massachusetts $11.00
Michigan* $9.25
Minnesota* — all cities/counties except … “small employers” (employers with an annual sales volume of less than $500,000) $7.87
“large employers” (employers with an annual sales volume of $500,000+) $9.65
Minneapolis                                         large employer (101 or more) $10.00
Mississippi $7.25
Missouri $7.85
Montana* $8.30
Nebraska $9.00
Nevada $8.25
New Hampshire $7.25
New Jersey* $8.60
New Mexico — all cities/counties except … $7.50
Albuquerque*                                             employer provides benefits $7.95
employer does NOT provide benefits $8.95
Las Cruces* $9.45
Santa Fe $11.09
Bernalillo County*unincorporated areas                                             employer provides benefits $7.85
employer does NOT provide benefits $8.85
Santa Fe County unincorporated areas $11.09
New York**  “Upstate” employers (excluding fast food employees) $10.40
“Downstate” employers (excluding fast food employees) $11.00
“Small” NYC employers (excluding fast food employees $12.00
Fast food employees outside NYC $11.75
“Large” NYC employers (excluding fast food employees) $13.00
Fast food employees inside NYC $13.50
North Carolina $7.25
North Dakota $7.25
Ohio* $8.30
Oklahoma $7.25
Oregon — all cities/counties except … $10.25
Portland $11.25
Nonurban Counties 

(Baker, Coos, Crook, Curry, Douglas, Gilliam, Grant, Harney, Jefferson, Klmath, Lake, Malheur, Morrow, Sherman, Umatilla, Union, Wallowa Wheeler counties)

$10.00
Pennsylvania $7.25
Rhode Island* $10.10
South Carolina $7.25
South Dakota* $8.85
Tennessee $7.25
Texas $7.25
Utah $7.25
Vermont* $10.50
Virginia $7.25
Washington* — all cities/counties except … $11.50
City of SeaTac* (hospitality and transportation workers) $15.64
Seattle* $14.00
small employer who does not pay towards medical benefits

(500 or less)

small employer who does pay towards medical benefits

(500 or less)

$11.50
large employer who does not pay towards medical benefits

(501 or more)

$15.00
large employer who does pay towards medical benefits

(501 or more)

$15.45
Tacoma* $12.00
Washington DC $12.50
West Virginia $8.75
Wisconsin $7.25
Wyoming $7.25
 * = increase in minimum wage effective January 1, 2018

** = increase in minimum wage effective December 31, 2017

 

Caveat: Please be advised that this information is being provided as a courtesy and that ePlace Solutions, Inc. does not track local laws and ordinances and will not update this information with changes in local laws and ordinances.

 

 

NEW LAW: California Expands Human Trafficking Posting Requirements

Earlier this month, California Governor Jerry Brown signed AB 620 and SB 225 into law.  These two new laws expand the posting requirements relating to human trafficking.

Under existing California law, certain employers (i.e., alcohol retailers, airports, emergency rooms, and adult or sexually-oriented businesses) are required to post the California human trafficking poster in a prominent location in the workplace.  AB 620 extends the posting requirement to all hotels, motels, and bed and breakfast inns.  This new posting requirement goes into effect on January 1, 2018.

SB 225 adds the bold and underlined language to the California human trafficking poster:

If you or someone you know is being forced to engage in any activity and cannot leave—whether it is commercial sex, housework, farm work, construction, factory, retail, or restaurant work, or any other activity—text 233-733 (Be Free) or call the National Human Trafficking Hotline at 1-888-373-7888 or the California Coalition to Abolish Slavery and Trafficking (CAST) at 1-888-KEY-2-FRE(EDOM) or 1-888-539-2373 to access help and services.
Victims of slavery and human trafficking are protected under United States and California law.
The hotlines are:
·
Available 24 hours a day, 7 days a week.
·
Toll-free.
·
Operated by nonprofit, nongovernmental organizations.
·
Anonymous and confidential.
·
Accessible in more than 160 languages.
·
Able to provide help, referral to services, training, and general information.

The California Department of Justice is required to make the updated notice available to California employers no later than January 1, 2019.

NEW LAW: California MINIMUM PAY FOR EXEMPT COMPUTER PROFESSIONALS AND HOURLY-PAID PHYSICIANS TO INCREASE IN 2018

The California Department of Labor Standards Enforcement (DLSE) recently announced that the minimum pay requirements for exempt computer professionals and hourly-paid physicians and surgeons will increase effective January 1, 2018 as follows:

  • Exempt computer professionals must be paid at least $43.58 per hour, or a minimum salary of $7,565.85 monthly or $90,790.07 annually to be eligible for the professional exemption from overtime
  • Hourly paid physicians and surgeons must be paid at least $79.39 per hour to be eligible for the professional exemption from overtime

It is recommended that employers who employ these type of employees review the compensation levels of these employees and verify that their compensation meets the new minimum pay rates in order for any exemption from overtime to be retained.