California Employment Law, Bulletin

by Allen And Associates ~ May 28, 2008

Author: Colin R Cherry

Did you know that thanks to California employment law and the backing of the current Governor, California will have the highest hourly rate of pay in the USA starting January 1, 2008? California employment law will then dictate that a worker’s minimum wage will be $8.00 an hour, up from $7.50 an hour.

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

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 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

If an employee entitled to overtime is treated as exempt, they could be eligible to a nice chunk of change for overtime pay once the dust settles.

Is there a difference when paying an exempt versus non-exempt worker? Under California employment law, a non-exempt worker is subject to all pay rules set up by the Industrial Welfare Commission - that includes overtime. In other words, a non-exempt employee must be paid all overtime hours worked.

If you are an employer and are not sure into which category your workers fall, then check out the California employment law codes and regulations. Alternatively you can call the Department of Labor for advice.

As a rule of thumb, your status as an exempt of non exempt employee if governed by the responsibilities you have or your professional status. Job title or description has nothing to do with it.

Licensed professionals such as architects, doctors, lawyers, certified public accountants and engineers tend to be classed as exempt as are those in middle management who have the appropriate responsibilities. The responsibilities would include the ability to hire and fire, train employees and who spend less than 50 percent of their time performing the same duties as their employees.