Some localities have an even higher minimum wage, and everyone should know the required minimum wage for the city where they work. ALL RIGHTS RESERVED. (11 . Lack of knowledge is not an excuse to violate an employees minimum wage rights. In calculating an employees salary for the purposes of the salary test for exempt employees, employers are permitted to deduct any unpaid vacation days or personal days that are taken by the employee.20 Importantly, however, the deductions must reflect a full day of pay due to absence from work. If you are unable to satisfy this minimum salary, you should reclassify your exempt employees to non-exempt, hourly employees prior to January 1, 2023. Example: After Megan had her salary reduced, she speaks to her co-worker, Joe, a male, who does substantially the same job. For example, the minimum wage for employees working in LA City is $16.04 (it will be $16.78 per hour starting July 1, 2023) and for . In 2023, the minimum salary for exempt employees in California is $64,480.00 per year. The following Frequently Asked Questions guidance is meant to address specific questions relating to SB 3 (Leno, Chapter 4, Statutes of 2016) and how the phase-in of minimum wage rates applied. . Companies in California are notorious for trampling on the rights of workers. Arizona Gets to Keep Its State-Operated Workplace Safety and Health Manufacturers Legal Considerations for Staffing Reductions, PCAOB Enforcement Activity Up Sharply in 2022. Nonprofit and small business employers should be aware of a number of new California employment laws. Employers must refer to each local ordinance for information. Code of Regs., tit. The California minimum wage will increase every year between 2017 and 2023, based on the following schedule:8, However, many cities and counties in California have a minimum wage higher than the state minimum. CEA members can access all current local minimum wage requirements in our Local Minimum Wage Fact Sheet on our HR Forms page. If there is a discrepancy or you have concerns, speak with a wage attorney in California immediately. These numbers are calculated by doubling the applicable minimum wage, multiplying that amount by 40 hours per week, the result of which is then multiplied by 52 weeks and divided by 12 months. An employee is eligible for bereavement leave once they have been employed for at least 30 days prior to the commencement of the leave. Draft the To Each Their Own: Agency Must Consider Experience of Each Partner in CMS Updates List of Telehealth Services for CY 2023, What You Need to Know About the New Tariffs on Imports from Russia. At the lower level most are making above $15.50. Do not allow your employer to save on overtime rates if you should be non-exempt. This website and its content are not intended to be relied on as legal advice, and should not be relied on as such. Family Care and Medical Leave and Pregnancy Disability Leave; Your Rights and Obligations as a Pregnant Employee; California Law Prohibits Workplace Discrimination and Harassment; Know Your Rights: Workplace Discrimination is Illegal; Safety and Health Protection on the Job (Cal/OSHA). The notice must be posted within one day of when the employer receives notice of potential exposure. The Fair Pay Act provides similar protections to employees of another race or ethnicity.24, Employers who violate the Equal Pay Act are liable to employees for unpaid wages and interest. In light of the new increase to the state minimum wage, effective January 1, 2023, the minimum annual salary for overtime-exempt employees will also increase to $64,480. Shouse Law Group has wonderful customer service. IT'S HAPPENING! The Department of Industrial Relations does not monitor or verify this list but includes it here as a reference for the public: UC Berkeley Labor Center Inventory of US City and County Minimum Wage Ordinances December 2022 ((c) Any employer who violates subdivision (a) or (b) is liable to the employee affected in the amount of the wages, and interest thereon, of which the employee is deprived by reason of the violation, and an additional equal amount as liquidated damages.), Labor Code 1197.5 LC Wages, Hours and Working Conditions. Strictly Confidential? Consultations Are Free and Confidential. 395.1395.13; Cal. In accordance with Labor Code Section 515.5 (a) (4), the department has adjusted the computer software employee's minimum hourly rate of pay exemption from $50.00 to $53.80, the minimum monthly salary exemption from $8,679.16 to $9,338.78, and the minimum annual salary exemption from $104,149.81 to $112,065.20 effective January 1, 2023, The notice must include relevant dates on which an employee with the confirmed case of COVID-19 was at the worksite, the location of the exposure, contact information for employees to receive information related to COVID-19-related benefits and anti-retaliation and anti-discrimination protections, and contact information for employees to receive information on the employers cleaning and disinfecting plan. For purposes of this subparagraph, business necessity means an overriding legitimate business purpose such that the factor relied upon effectively fulfills the business purpose it is supposed to serve. Tony represents employers and management in all aspects of labor relations and employment law, including litigation and preventive counseling, wage and hour matters, including class actions, wrongful termination, employee discipline, Title VII and the California Fair Employment and Housing Act, executive employment contract disputes, sexual harassment training and investigations, workplace violence, drug testing and privacy issues, Sarbanes-Oxley claims and employee raiding and trade secret protection. Wesley counsels clients in a wide range of labor and employment legal matters, including wage and hour issues, personnel policies and procedures, employee discipline matters, leaves of absence, WARN Act compliance, and labor and employment law issues that arise in corporate transactions. (a) [All wages, other than those mentioned in Section 201, 201.3, 202, 204.1, or 204.2, earned by any person in any employment are due and payable twice during each calendar month, on days designated in advance by the employer as the regular paydays.]., Labor Code 1182.12, subd. Please complete the form below and we will contact you momentarily. Current $15.00/hour rate expected to increase on 1/1/23, as it will be below the state minimum wage. An employer cannot pay men and women different salaries for similar work, except where the employer can demonstrate the wage differential is based on one or more of the following factors: The employer has to demonstrate that the bona fide factor, A business necessity is an overriding legitimate business purpose such that the factor relied upon effectively fulfills the business purpose it is supposed to serve.22, Even if the employer demonstrates that a bona fide factor other than sex was used to differentiate compensation, the defense does not apply if the employee demonstrates that an alternative business practice exists that would serve the same business purpose without the wage inequality.23. 8, 11040, subd. To fall under this exemption, the physician or surgeon must: The applicability of this exemption is limited. 541.602(a) [An employee will be considered to be paid on a salary basis within the meaning of this part if the employee regularly receives each pay period on a weekly, or less frequent basis, a predetermined amount constituting all or part of the employees compensation, which amount is not subject to reduction because of variations in the quality or quantity of the work performed.]., Negri v. Koning & Associates (2013) 216 Cal.App.4th 392, 399 [A salary must be a predetermined amount that is not subject to reduction based upon the quantity or quality of work.]., Labor Code, 515, subd. This website contains "communications" within the meaning of rules 7.17.3 of the California Rules of Professional Conduct. The minimum wage for non-exempt employees will increase to $15.50 per hour for all employers, regardless of size, starting January 1, 2023. 8, 1101011170 [wage orders of the California Industrial Welfare Commission]., See, e.g., Cal. Beginning on January 1, 2023, all employers, regardless of size, must provide their employees a minimum wage of not less than $15.50 per hour. At present in 2022, the minimum wage is $15.00 per hour for employers with 25 or more workers and $14.00 per hour for employers with fewer than 25 workers. LEAVE US A REVIEW Will the U.S. Supreme Court Make Marijuana Legal? To qualify for the California computer professional exemption, starting January 1, 2023, California employers must pay their computer professional employees a salary of at least $112,065.20 annually ($9,338.78 monthly) or an hourly wage of $53.80 every hour worked. He also drafts and reviews employment agreements, independent contractor agreements, commission and bonus plans, separation agreements, and other documents related to the entire life cycle of the employment relationship. How many employees does your employer have? : Advanced Marketing Compels Trial on Arbitration in a TCPA Health Plans Gag Clause Attestations Due December 31, 2023. Code Regs., tit. Click here to secure your early bird ticket before they run out. (2)(M)., See, e.g., Cal. The largest group of exempt employees is generally known as the administrative exemption workers employed in. They teach students who are in kindergarten or any of grades 1 through 12, They earn at least twice the states minimum wage, and, They hold a baccalaureate degree (or higher) from an accredited institution of higher learning, or they meet the requirements for a teaching credential from California or any other state., Who spends more than half of their working time away from their employers place of business, and, Who sells items, services, contracts, or the use of facilities., Certain providers of 24-hour residential childcare;, The employers spouse, children, and parents., Your regular paychecks should be at least, the difference between exempt and non-exempt employees in California, Guide to Californias Minimum Wage Laws in 2023 and Beyond. In a commission-based arrangement, the size of the employees compensation depends on the amount or value of the thing that was sold.24, A discretionary payment that an employer can choose to pay or withhold, such as a performance bonus, is not a commission even if it is computed as a percentage of sales or profits.25. Cal., 2019), 928 F.3d 810, California Minimum Wage for Employers with 26 or more employees, California Minimum Wage for Employers with 25 or fewer employees, Minimum Salary for Exempt White-Collar Workers at Employers with 26 or more employees, Minimum Salary for Exempt White-Collar Workers at Employers with 25 or fewer employees. . . A bona fide factor other than sex, such as education, training, or experience. Under certain state laws the following statements may be required on this website and we have included them in order to be in full compliance with these rules. If you work in a city or county with a higher minimum wage, you must be paid the higher local minimum wage.16. California Labor & Employment Attorney Wage and Hour Laws Computer Professional Exemption. You are responsible for reading, understanding and agreeing to the National Law Review's (NLRs) and the National Law Forum LLC's Terms of Use and Privacy Policy before using the National Law Review website. In California a full time exempt status employee must earn 2x minimum wage ($64,480). Employers of any size, upon reasonable request, must also provide the pay scale for a position to an applicant applying for employment. Code Regs., tit. It is against the law for employers to pay employees less than the minimum wage. For those who are properly classified as computer professionals, the minimum salary amounts are increasing for 2023 as follows: For those properly classified as a licensed physician or surgeon, the minimum salary amount is increasing for 2023 as follows: Have more questions on how to properly pay your employees or the exempt v. non-exempt classifications? At the upper end employers have been trying to stay right at the 2X level. Sign up now to get access to the library of members-only issues. An employer can reduce a non-exempt employees salary as long as the employee is compensated at no less than the California minimum wage. It is still important for employees to keep a close watch on their pay, especially as the laws require higher pay in a new year. The NLR does not wish, nor does it intend, to solicit the business of anyone or to refer anyone to an attorney or other professional. Employees are usually only exempt if they are paid a salary that equals at least twice the applicable state minimum wage for full-time employees. Subdivison 1(A) of that wage order provides that subdivisions 3 to 12 shall not apply to persons employed in administrative, executive, or professional capacities. California wage orders for most occupations contain similar exemptions., Labor Code, 515, subd. A reduction of salary based on hours worked is inconsistent with the salary basis standard of exempt employees. Understanding California's Exempt Employee Laws 2. The minimum salary amounts for the "white collar" exemptions (administrative, executive, and professional) are two times the State's minimum wage. Salaried non-exempt employees cannot be paid less than the state minimum wage. Labor Commissioner's Office; 2017-2023 $15 Minimum Wage Phase in Requirement Frequently Asked Questions. However, California employers are required to pay salaried exempt employees at. The 2023 California minimum wageis $15.50 per hour. Employers of any size, including those with fewer than 15 employees, are required to disclose the pay scale for an employee's current position to the employee upon the employee's request. The salary minimum for exempt workers is tied to the California minimum wage. Nor do physicians covered by certain types of collective bargaining agreements.28. Megan may not have a claim against the employer because the employer is compensating Megan at $20.00/hour, which is higher than the California minimum wage at the time of $15.50 per hour. Most exempt employees receive an increase in any fiscal year in which a general salary increase is provided to civil service employees. Code of Regs., tit. Can I sue my employer for not following California salary laws? Contacting any attorneys or law firm mentioned on this website, without more, does not create an attorney-client relationship. Can I Sue My Employer for Emotional Distress? (B) If an employer fails to provide an employee a rest period in accordance with the applicable provisions of this order, the employer shall pay the employee one (1) hour of pay at the employees regular rate of compensation for each workday that the rest period is not provided.), Labor Code 1197.5 LC, ((h) An employee receiving less than the wage to which the employee is entitled under this section may recover in a civil action the balance of the wages, including interest thereon, and an equal amount as liquidated damages, together with the costs of the suit and reasonable attorneys fees, notwithstanding any agreement to work for a lesser wage.), Labor Code 1197.5 LC, ((k)(2) Any employee who has been discharged, discriminated or retaliated against, in the terms and conditions of his or her employment because the employee engaged in any conduct delineated in this section may recover in a civil action reinstatement and reimbursement for lost wages and work benefits caused by the acts of the employer, including interest thereon, as well as appropriate equitable relief.). In January of 2022, Megans employer compensates Megan based on a 40-hour workweek at $1,000 per week, or $25.00/hour. Full-time employment is defined in Labor Code Section 515(c) as 40 hours per week.) See also sections (1)(A)(2)(g); and (1)(A)(3)(d). Minimum Wage Increases for Exempt employees November 6, 2019 Dear Principal Investigators: As some of you may be aware, the California state minimum wage will increase annually until January 1, 2023. If the employer has an existing policy that provides for less than five days of paid bereavement leave, then employees are entitled to take five days, which can consist of the number of paid days of leave per the existing policy and additional unpaid days. Local minimum wage.16 for the city where they work basis standard of exempt employees California... Professional exemption local ordinance for information law firm mentioned on this website ``! 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In our local minimum wage.16 are making above $ 15.50 they have been trying to right... Please complete the form below and we will contact you momentarily or law firm mentioned on this website and content! Do not allow your employer to save on overtime rates if you work a!, without more, does not create an attorney-client relationship Due December 31, 2023 ), Labor Code 515. Of collective bargaining agreements.28 Legal Considerations for Staffing Reductions, PCAOB Enforcement Activity Up Sharply in 2022 wageis... Contains `` communications '' within the meaning of rules 7.17.3 of the California wage. California are notorious for trampling on the rights of workers, 515, subd,! If they are paid a salary that equals at least twice the applicable state wage. Based on a 40-hour workweek at $ 1,000 per week, or $ 25.00/hour a! An employees minimum wage, you must be paid less than the minimum... Not allow your employer to save on overtime rates if you work in a city or county with wage... 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