Minimum Wage Up to $10 in 2016

Did you remember that in 2009 Californians voted to increase the minimum wage to $10 per hour in 2016? Well we did. According to California legislation, “Under existing law, California’s minimum wage will increase from $9 per hour to $10 per hour on Jan. 1, 2016. This measure increases the minimum wage to $11 per hour effective Jan. 1, 2017, and by $1 each of the next four years, to $15 per hour on Jan. 1, 2021. Thereafter, adjusts the minimum wage annually based on the rate of inflation for the previous year, using the California Consumer Price Index for Urban Wage Earners and Clerical Workers.”

This increase requires that any employees with an hourly wage of less than $10 have their hourly wage increased as of Jan. 1, 2016 for all time worked. So ready or not – here it comes. According to Troutman Sanders, an HR LAW Firm, here is what you need to know.

“For any employee who receives an increased hourly wage rate, employers are required to provide that employee with a written notice of the change within seven (7) days of the effective date of the change. This notice may be given to each employee via a Labor Code 2810.5 form (available online at www.dir.ca.gov/dlse/LC_2810.5_Notice.pdf), through a written notice explaining the change, or through a wage statement reflecting the change provided within seven (7) days of the effective date. For employers who are not providing paychecks/wage statements by Jan. 7, 2016, employees should receive a separate written notice informing them of the change. The increase in minimum wage also affects the salary threshold for exempt employees under California’s minimum wage and overtime requirements under the ‘white collar’ exemptions, which include the administrative, executive and learned professional exemptions. To qualify as exempt under these exemptions, employees must be paid at least double minimum wage. Accordingly, beginning Jan. 1, 2016, California exempt employees must receive an annual salary of at least $41,600 (and higher for computer professionals and highly compensated employees). However, employers should keep in mind that recent proposed regulations from the federal Department of Labor call for an increase in the minimum salary threshold for these exemptions to approximately $970 per week (or $50,440 per year) for 2016, with increases each year to follow.  It is anticipated the DOL will issue final regulations in the coming months. As always, in addition to the compensation requirement, to qualify as exempt, employees must also perform the duties set forth in the applicable Wage Orders and, for computer professional employees, in Labor Code section 515.5. The duties requirements for each of the exemptions are very fact and circumstance specific.”

For more information on the increase in minimum wage and how it may affect both your non-exempt and exempt employees, please contact your HR professional or log onto www.hrlawmatters.com.

Montrose-Verdugo City Chamber of Commerce: Your source for all things local! Our mission is to actively support and enrich the community, vitality and pride of Montrose, to help preserve the historic district and small town atmosphere, to promote economic stability and positive, productive relationships within Montrose and the surrounding communities.

Upcoming events

Montrose Old Town Christmas continues until Dec. 25 on Saturday and Sunday from 11 a.m. to 3 p.m. in the Montrose Shopping Park.

2016 Installation Dinner on Thursday, Jan. 28 at the Oakmont Country Club, 3100 Country Club Dr., Glendale 91208.

  melinda clarke