hr blog
CA Minimum Wage Increases July 1st
The first phase of California's 2-phase, minimum wage increase is now less than one month away. Effective July 1st, California's minimum wage will increase from $8.00 an hour to $9.00 an hour. For exempt employees, minimum wage will increase from $16.00 an hour to $18.00 an hour (weekly salary from $640 to $720). Employers are encouraged not to forget how the increase in the state's minimum wage impacts their exempt employees.
Employees who are paid a piece rate must ensure they receive the minimum wage for each hour worked; those who are paid on commission and wish to draw off future commissions, such draws which must be equal to at least the minimum wage and overtime due to the employee for each pay period (unless the employee is exempt); and only employees whose wages are at least two times the minimum wage can be required to provide and maintain hand tools and equipment customarily required by the trade or craft in which they work.
The second phase of the minimum wage hike will take effect on January 1, 2016, and will increase the mandated minimum wage from $9.00 to $10.00 an hour. For exempt employees,from $18.00 to $20.00 an hour.
California employers should take prompt action to ensure their wage and hour practices are in full compliance with the new minimum wage law. This includes making sure that appropriate notice be displayed (by July 1st) communicating the minimum wage increase.