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California's Minimum Wage Increases

June 13, 2014 Posted by Jessica Shofler in Employment Matters, Jobs, News, Nonprofits

Minimum WageNo matter how you feel about it, on July 1, 2014 the minimum wage will increase from $8 to $9 per hour in California. Our friend Nicole Kamm from the law firm Lewitt, Hackman, Shapiro, Marshall & Harlan shared with us some examples of the impact this increase will have on your organization:

  • “Non-exempt employees paid less than $9.00 per hour must receive an increase in pay.
  • Certain exempt employees (executive, administrative, professional) must receive a monthly salary of at least twice minimum wage on a salaried basis (as well as meet other exemption requirements).  Effective July 1, 2014, the minimum monthly salary for exempt employees increases to $3,120.  Employees paid less will no longer meet the exemption.
  • Inside sales employees under Wage Orders 4 and 7 must earn more than 1½ times minimum wage for all hours worked (they must also receive more than 50% of their compensation from commissions).  As of July 1, 2014, to qualify as exempt, such employees must be paid at least $13.50 per hour.”

The change also brings with it new documents to post in your organization’s facility and new written notices to provide to non-exempt employees. If you need help preparing these documents, now is the time to ask. Contact Nicole or your employment attorney or HR professional for help.