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Employment Law eAlert
Newsletter
June 11, 2014
New Minimum Wage Increases To $9.00 Effective July 1, 2014

Effective July 1, 2014, California's minimum wage increases to $9.00 per hour from the existing rate of $8.00 per hour for non-exempt employees.  Under AB 10, the minimum wage rate will increase again to $10.00 per hour starting January 1, 2016.  

 

The California Department of Industrial Relations has released updated California Minimum Wage posters in English and Spanish.

 

This increase in minimum wage for non-exempt employees, also increases the minimum "salary basis" test for exempt employees. To be exempt from overtime laws, California executive, administrative, or professional exempt employees must be paid two times the minimum wage rate.  Effective July 1, these exempt employees must be paid at least $720.00 per week for a 40-hour work week.  

  

All exempt employees must still meet the "duties test" for exemption status. description of each duties test can be found on the California Department of Industrial Relation's website locatehere. Some employers mistakenly believe that by paying an employee a salary then the employee is automatically "exempt" from overtime pay when this is not the case under state or federal wage and hour laws. There can be significant financial consequences for misclassifying an employee as exempt when the employee works overtime. R&J can offer legal guidance on the proper classification of a worker. 

 

 

Avoid The No. 1 Employee Handbook Mistake:  Not Updating Your Employee Handbook

The most common mistake employers make with their employee handbooks is failing to update them.

While many employers do not look forward to revising their employee handbooks because they find the process tedious and time consuming, updating the handbook to include changes in the law may be necessary to comply with notice provisions of a particular statute. At the same time, it is always important to delete or revise policies that are no longer being followed by your company.  


As a result of changes to various statutes that went into effect in 2013 and 2014, an employee handbook should be revised to include the following:

  • Anti-Harassment and Anti-Discrimination Policy.   Updated policy should include a statement to the effect that "sexual harassing conduct does not have to be motivated by sexual desire to be unlawful."  In addition, a person's actual or perceived pregnancy, childbirth, breastfeeding and/or related medical condition is protected from sexual harassment and discrimination, and therefore references in both the sexual harassment policy and employment discrimination sections of the handbook must be updated.
  • Paid Family Leave Benefits.  Effective July 1, 2014, Paid Family Leave wage-replacement includes time off for the care of a seriously ill grandparent, grandchild, sibling, or parent-in-law.  Currently, family members only include a child, spouse, parent, or registered domestic partner. This expansion must be updated in your employee handbook to educate management, inform employees and protect your company.
  • Military Status.  The Fair Employment and Housing Act (FEHA) now prohibits discrimination of an individual on the basis of military or veteran status.  The inclusion of veterans should be updated in your employee handbook. 
  • Victims of Domestic Violence, Sexual Assault or Stalking. Victims of domestic violence, sexual assault, and stalking are protected from adverse action such as discharging, discrimination or retaliation.  Employers are also required to engage in reasonable accommodation for time off to allow employees the opportunity to address related issues.  These provisions should be updated in your employee handbook. 

Employment Law Legal Team
Rynn & Janowsky, LLP | rj@rjlaw.com | http://www.rjlaw.com

This article is published as a service to our clients and friends. The material contained herein is provided for informational purposes only and is not intended to constitute advertising, a solicitation or legal advice. 

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