Wage and hour requirements in California are complex and compliance isn’t easy when the rules keep changing. If employers aren’t up to speed on the newest wage and hour laws it can open them up to an investigation by the Department of Labor for all kinds of infractions. Join us in April at a CEA Wage and Hour Symposium in your area, or on line with our live webinar (links).
The top three wage and hour mistakes made by employers are:
1. Paying less than the applicable minimum wage
2. Misclassification of employees
3. Discrimination on wages
Minimum wage is confusing for a variety of reasons. First there is a federal government minimum wage rate. Then, there are two California State minimum wage rates, one for small businesses and a second rate for larger businesses. Next, the state’s minimum wage rate can supersede the federal rate. And finally, individual city and county minimum wage requirements can trump the state minimum wage rate. Confused? Let’s break it down:
Current federal minimum wage is $7.25 an hour, however,
California’s minimum wage rate is $10.50 an hour (for businesses with 25 or fewer employees) or $11 an hour (for businesses with 26 or more employees).
29 cities and counties have minimum wage requirements that are higher than the state’s minimum wage rates.
Remedy: See our minimum wage rate sheet and closely monitor your city and county’s minimum wage laws.