It is very important for every employee to have sufficient knowledge concerning the minimum wage increase in 2019 so that they know their rights and voice their concerns just in the event that their rights are violated. This article thus aims to help all California employees get to know their rights on the California minimum wage laws.

The California minimum wage laws were instated to ensure a gradual increase in the minimum wages by $1 on hourly basis until a minimum wage rate of $15 was reached. As of 1st January, 2019 the expected wage rate is expected to increase to $12 per hour.

Pros of the Minimum Wage Increase

• Employees will earn higher earnings and as a result improve their living standards. They may also be able to save and later invest to start their own businesses. This will in turn be very important in the development of the state as a whole.
• Increase in the workers’ earnings serves as a motivation to hard work in their duties. This will therefore improve their productivity in the businesses and hence contribute to the success of the enterprises.

Cons of the Minimum Wage Increase

Despite the advantages on the increase in the minimum wage rate, businesses will be forced to spend more on the employees wages and hence reduce their total profits. Large businesses are a victim of this since most of the company’s returns are channelled to the employees payments.

Frequently Asked Questions

• Employees have always wondered where to take their wage complaints in case the laws were not adhered to. The United Employees Law Group (UELG) is always ready to listen to every employees’ complaints in California and therefore all workers are encouraged to voice their grievances through the group. Government authorities in the labor sectors are also available for such problems.
• The kind of evidence to provide just in case the wage increase was not implemented by a particular business is also another question bothering workers. Employees can always take their identification documents together with their pay slips to the UELG support team on such matters.
  As an employee, always ensure that you know your rights and speak up when any of them are violated. You can also visit the UELG website more details and for any other workplace disputes.
  

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There are several lawsuits which have resulted from misclassification of employees by employers. Some employers classify employees as exempt while they are clearly nonexempt. To avoid getting on the wrong side of the law, employers should carefully analyze their employees’ work duties or receive advice from experts such as experienced human resource professionals and attorneys.

Generally, the laws of the State of California presume all employees as nonexempt. Nonexempt employees strictly adhere to California’s Labor Code. In other words, they are not exempt from factors such as overtime pay and the minimum wage. On the other hand, as the name suggests, exempt employees are exempt from certain wage and hour requirements because of their pay and duties.

Job Titles

More than 50% of the time of exempt employees is spent performing exempt duties. It should be noted that job titles are irrelevant. Having a big title does not guarantee or meet the threshold of classifying an employee as an exempt employee. For the Labor Commissioner to determine whether an employee is exempt or nonexempt, he or she looks into the duties performed by an employee during workweeks. Sales employees must earn at least twice the minimum wage every month for full-time employment.

Exempt Employee Duties

Mostly, employees classified as exempt employees exercise independent judgment and discretion in performing their duties. For example, they may fire and hire other employees. They have management duties that involve directing the work of other employees or departments in an enterprise. They make crucial decisions after considering various possibilities.

Exempt employees are paid for a full week salary whenever they perform their duties any week. As such, there are limited deductions to an exempt employee’s salary. If there is the unavailability of work at any given time in a week, as long as the exempt employee was ready to work, he or she is still entitled to a full week of pay.

Managerial and administrative employees are considered as exempt employees unless they do not meet certain requirements. They are strictly classified as nonexempt employees if they do not meet these requirements. Note that not all professional employees are classified as exempt employees. There are legal requirements that they must meet for them to be classified as such.

Artists

According to a California law amendment in the year 2000, some computer professionals have an overtime exemption. The situation is different with artists since they self-employed meaning that they have the control over the nature of their work. In the case of sales members, they are classified as either outside or inside salespeople for simplicity in classifying them as either nonexempt or exempt employees. For easy evaluation and differentiation between nonexempt and exempt employees, one may use the exempt/nonexempt wizard tool or nonexempt vs. exempt forms and checklists.

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In California, employees are supposed to be paid the minimum wage stipulated in the state law. If employers fail to remit the set minimum wage, it is a violation of California labor and employment laws. The minimum wage is set to increase annually in all industries from January 2017 to January 2022. Of specific focus in this increase is employers with 26 or more employees. As for employers with 25 or fewer employees, the increase will take effect from January 2018 to January 2023.

Frequently Asked Questions (FAQs)

• What are the new federal regulations with respect to the minimum salary level?

According to these regulations, 10% of the minimum salary level has to be allocated to incentive payments, commissions, and non-discretionary bonuses. This was previously not a requirement.

• Which minimum wage laws should employers follow among local, state and federal minimum wage laws?

In California, most employers have to adhere to federal as well as state minimum wage laws. Cities also enact their own local base pay laws. This creates confusion on the part of employers. Under such circumstances, employers must follow the law that greatly benefits employees. For instance, California’s law demands a higher minimum wage rate compared to the federal law thus employees must be paid the state minimum wage rates.

• What does the term minimum salary thresholds mean?

Simply put, the term refers to minimum wage requirements for exempt employees. There exists “white collar” exemptions for employees in job categories such as administrative, executive and professional categories. Initially, California’s minimum salary threshold was $41, 600. However, this has changed with reference to the new Federal Overtime Rule which puts it at $47,476. As a result, an employee is only entitled to this exemption under the “white collar” exemptions if he is paid not less than $47,476.

• What factors qualify an employee for exempt status or the minimum salary thresholds?

Employers consider a number of factors when determining exempt status. Factors such as if the employee is responsible for the management of the business, charged with decision making or owns a special state license are used to guide employers’ decisions.

• What action should I take if my employer fails to pay me the required minimum wage?

You can file a lawsuit to compel your employer to pay the wages. Alternatively, you can file a wage claim with the Labor Commissioner’s Office.

• Which employees are categorized as learners and should they be paid the proposed minimum wage level?

Learners are employees who have little or no experience in the occupations they are in. The law requires that these employees irrespective of their age be paid at least 85% of the base pay.

As a final point, employers must conform to California’s minimum wage requirements. Of key concern should be having precise pay policies that address the interests of both exempt and non-exempt workers. Doing so will avoid the risk of costly lawsuits which can be filed by employees if they feel their right to the set payment has been violated.

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