Employers Must Post Updated Minimum Wage Order by July 1, 2014

Effective July 1, 2014, the California minimum wage increases to $9.00 per hour (from $8.00). It will increase further to $10.00 per hour effective January 1, 2016. Employers must post the applicable California Department of Industrial Relations Wage Orders, including new MW-2014, which has been updated to reflect the new minimum wage. There are 17 industry or occupation-specific Wage Orders, copies of which are available from the Division of Labor Standards Enforcement, as well as from employer trade associations.

As explained in our January 2014 “New Year, New California Employment Laws” Legal Alert, a less-advertised consequence of this increase is the impact it will have on the salary test for preserving an employee's exempt status. Under California law, a supervisor classified as exempt must be paid a monthly salary that is no less than two times the wages paid to a full-time minimum wage employee. After July 1, 2014, the minimum monthly salary to preserve exempt status under California Labor Code section 515, will rise to $3,120 per month, annualized to $37,440. In addition, the penalties available for minimum wage violations will now include “liquidated damages.”

Written by:

Published In:

DOL

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Allen Matkins Leck Gamble Mallory & Natsis LLP | Attorney Advertising

Don't miss a thing! Build a custom news brief:

Read fresh new writing on compliance, cybersecurity, Dodd-Frank, whistleblowers, social media, hiring & firing, patent reform, the NLRB, Obamacare, the SEC…

…or whatever matters the most to you. Follow authors, firms, and topics on JD Supra.

Create your news brief now - it's free and easy »

All the intelligence you need, in one easy email:

Great! Your first step to building an email digest of JD Supra authors and topics. Log in with LinkedIn so we can start sending your digest...

Sign up for your custom alerts now, using LinkedIn ›

* With LinkedIn, you don't need to create a separate login to manage your free JD Supra account, and we can make suggestions based on your needs and interests. We will not post anything on LinkedIn in your name.
×
Loading...
×