Update on California Employment Law

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.

An added plus is that meal and lodging credits rose by a similar percentage for those workers receiving them from their employers. On the downside, these credits can be included when calculating the minimum wage payable by employers.

These California employment law provisions do not apply to federal employees that work outside California. For those unfortunates the wage stays at $5.15 per hour.

The hottest issue in California employment law is the payment of overtime. This is an area of California employment law that is pretty much akin to stepping on a land mine. Why? Because there are two classes of workers under California employment law - exempt and non-exempt - and failure to know the difference can cost business big bucks.

Exempt employees could be eligible for a tax rebate on their overtime earnings whereas non-exempt employees would not qualify for this rebate.

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.

Check the California employment law codes to see which category you come under or call your local 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.

Examples of exempt employees under California employment law would include licensed professionals such as lawyers, engineers, doctors, certified public accountants and architects. Managerial staff who are responsible for training, hiring and firing and spend less than 50 percent of their time performing the same duties as their staff also qualify.

The other two categories considered to be exempt are outside sales reps and those who create/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. Save yourself some time and grief in the long run.

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Colin R Cherry publishes a broadrticles on a broad va broadriety of subjects. Check out his Employment Guide website. A wealth of Employment La broadw a broadrticles ca broadn be found here.

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