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CA Minimum Wage Due To Hike To $10 An Hour Soon

Date: October 29, 2015
Author: Fred J Mora, III
Posted by HRConsortium in: Wage and Hour

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Effective January 1, 2016, the California minimum wage will be raised to $10 an hour. This may be a good time to begin reviewing your payroll and those employees who are currently being paid at current minimum wage rates.

In addition, exempt employees will also be affected by the rate hike. California wage and hour provisions address that exempt employees, such as those employees who meet the executive, administrative and professional exemption requirements, are to be paid no less than twice the current state minimum wage - which will soon be $20 an hour.

To help with preparations, employers and/or HR managers should consider communicating any pay adjustments to their employees in advance. It is recommended that any changes be communicated in writing.

Regarding the State "Notice to Employee" --- Employers are not required to have to issue another copy of the Notice if an employee's rate of pay is the only thing changing, as long as the new rate of pay is shown on the pay stub (itemized wage statement) with the next payment of wages. Note: Decreases in wage rates can only be made prospectively and not retroactively where work was performed and earned under a specified rate.

For more information on the use of the "Notice to Employee", reference the web link provided below.

http://www.dir.ca.gov/dlse/faq_minimumwage.htm

http://www.dir.ca.gov/dlse/FAQs-NoticeToEmployee.html

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