In one month, minimum wage earners in California will get a “raise.” On July 1, 2014, the state’s new minimum wage will increase from $8 per hour to $9 per hour. (The minimum wage will get another bump in January 2016, when it goes up to $10 per hour.)
With only a few weeks left to prepare, employers need to make sure they are in compliance with the new rate for their nonexempt, hourly employees. In addition, employers need to reexamine the salaries they are paying to their employees in exempt, salaried positions that are tied to the minimum wage, such as those who qualify for the “white collar” overtime exemption. Additional practical implications for employers are covered in our September 2013 blog post, “BREAKING NEWS: California’s Minimum Wage Goes Up—But There Are Some Pitfalls Employers Need to Avoid.”
Employers with agreements to credit the value of meals and lodging against minimum wage should also take note. The Minimum Wage Order (MW-2014) of the Department of Industrial Relations dictates the maximum amount of credit that employers can take for meals and lodging.
Note: This article was published in the May 2014 issue of the California eAuthority.