No 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.