California Minimum Wage is just one aspect when it comes to California Employment Law.

Effective January 1st, 2017 the minimum wage is $10.50 per hour. There are cities that have a different minimum wage so you will need to check your city to make sure that you are paying your employees correctly.

Employees may not be paid less than this wage.  Even employees who work in the restaurant industry must be paid the minimum wage before tips.

California Tips and Tip Pooling

For those employees who work at a job where tips are involved employers need to understand that those tips are the employees.  While employers may require employees to pool their tips management personnel may not be part of that pool.

California Overtime

California Employment Law prohibits nonexempt employees from working more than eight hours without receiving overtime pay.  The overtime rate in California is time and a half.  Once the employee has worked more than twelve hours in a day, the employee must now be paid double their regular rate of pay.

Employers may be surprised to find out that paying an employee a salary does exclude them from over time.  Businesses also need to take note that employees who work unauthorized overtime must be paid at the overtime rate of pay.  This is true even if the employer was not aware that the employee was working overtime.

Employers also need to understand that there is no provision in the California Labor Law for employees to waive their right to overtime pay.

The only exceptions to overtime pay is employees who are exempt because they fall into one of the following categories.

  • Administrative employees
  • Executive employees
  • Outside Sales
  • Some drivers, and some employees who work on computer software.

California Overtime Misclassification

Simply giving an employee a title does not make them an exempt employee.  The exempt employees must pass both a salary test and a job duties test.  The employee must earn at least double the minimum wage and oversee two or more employees. 

California Employment Law Concerning Meal and Rest Breaks

In California, employees are entitled to a meal period after five hours of work.  The exception to this is if the workday is no longer than six hours in total.  If the employee is working more than ten hours in a day, they are entitled to a second meal period of thirty minutes.  It the total shift that the employee works is twelve hours or less the second meal period may be declined.

Both the employee and the employer must agree to waive the second meal period. However, this is true only if the first meal period was taken.

Such meal periods are unpaid, but the employee is to be free from all work responsibilities.

California Independent Contractors
When it comes to independent contractor’s employers must be very careful.  Independent contractors are to be independent.  The job they are engaging in should give them the opportunity to make a profit or take a loss.

They should be in control of their own hours and supply their own tools.

California Donning and Doffing

For those employers who require their employees to wear protective clothing for being safe while working there is a growing number of lawsuits that are being filed because employers are making the employee dress on their own time.

If the employee must be donning and doffing safety clothes to take their breaks and meal periods, it is a much better practice for the employer to pay the employee for that time.  Employers can require that the employee comes dressed to work if they can take the protective clothing home.

But once the employee is at work the employer should make sure the employee is compensated for that time.  The same can also be said for employers who are requiring employees to do any cleanup work to be ready for the day.  It is just not a wise practice.

California Wage Theft Protection Act
Beginning in 2012 all employers must provide all employees with the form 1028.5.  This form tells the employees exactly what their wages will be.  This form also tells employees how they will be paid, either by piece-rate, salary, hourly or commission.

The form also includes other important information.  Should the Department of Labor come to your door, they will be looking at this form.  So make sure that you hand it out and keep a copy for you.

CES Today is helping employers to get in compliance with every aspect of  California Employment Law, we make compliance simple.