Effective January 1, 2019, California once again is raising the minimum wage. Don’t forget to inform your nonexempt employees of the new change in their wage, should it apply, in writing within 7 calendar days of making the change!
For employers with 26 or more employees, minimum wage is $12.00/hour and for those with 25 or fewer employees, it is $11.00. Be aware, this also adjusts the state’s salary minimum wage requirement in order to qualify for exempt status to $49, 920/year, as well as an employee’s overtime rate. Just to make things more difficult for employers, some cities throughout the Bay Area have enacted their own City Ordinance’s setting minimum, wage higher than California’s. For instance, Oakland ($13.80), Belmont ($13.50), San Jose ($15.00), Palo Alto ($15.00), Sunnyvale ($15.65) and even San Mateo ($15.00), increase as of January 1, 2019 and this list does not include every city with minimum wage hikes. Other cities, like San Francisco and Los Angeles will increase their minimum wage requirements on July 1, 2019. Remember, when a city’s minimum wage is higher than the State’s, employers have to follow the law more favorable to the employee — i.e. pay them more. This upcoming increase is part of the State’s desire to get the statewide minimum wage to $15.00 by 2022 for large businesses and by 2023 for small businesses.
Employers beware — there is no time like the present to audit your payroll and make sure you are properly paying your employees according to your city’s requirements. To find out how our employment attorneys can assist you, please contact us today.
This material in this article, provided by Chauvel & Glatt, is designed to provide informative and current information as of the date of the post. It should not be considered, nor is it intended to constitute, legal advice or promise similar outcomes. For information on your particular circumstances, please contact Chauvel & Glatt at 650-573-9500.