California Employment Law - Good News for 2008
March 30th, 2008
This year saw the hourly rate of California workers rise to $8.00, a rise of over 13% thanks to the recently enacted statutes of California employment law. Because of this California now has the highest hourly rate in the USA.
Not only that, but under those same California employment law provisions, workers received an increase in lodging and meal credits amounting to the same percentage as the minimum wage increases. However, this is a double-edged sword as that same increase in credits can be offset against the minimum wage paid by employers where those employers also provide their employees with meals and/or lodging
Bad luck if you are a federal employee who works outside California’s state lines. The increases do not apply to you and you remain at $5.15 per hour. Time to get a job in California!
The issue that is receiving most attention at the current time is the payment of overtime. Under California employment law there are two classes of worker - non-exempt and exempt and the inability to know the difference can prove to be expensive
A non exempt employee who works overtime will be taxed on that overtime, but an exempt employee, although still taxed, would be eligible for a nice little tax rebate from the IRS.
On the plus side California employment law stipulates that when paying a non-exempt employee, that employee is subject to all the rules as set out by the Industrial Welfare Commission which means that he must be paid for all the overtime hours worked.
If you are in doubt as to what category your workers fall into, check California employment law codes and regulations for the answer. If it still isn’t clear, then call the Department of Labor.
In general to be an exempt employee it would depend on the level of responsibility they have, or their professional status. This doesn’t have anything to do with their job title, or whether or not they get a salary or and hourly wage.
As a general rule of thumb, employees considered to be exempt under the law are licensed professionals. E.g. doctors, lawyers, architects, engineers, and certified public accountants. Also exempt are managers who hire, fire, and train, and spend less than 50 percent of their time performing the same duties as their employees.
Two other categories that are considered to be exempt are travelling sales representatives and those who create or formulate business policies for their organizations. Again, if you have any questions about exempt versus non-exempt employees and how to make sure they are paid according to the law, check with the nearest Department of Labor office.
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