While newsworthy, California’s statewide minimum wage is really only a baseline, as many localities in California have passed ordinances which require employers to pay employees a higher minimum wage. Accordingly, California employers must keep track not only of statewide minimum wage requirements, but also of any local measures which may impact their employees’ required rate of pay, and pay the higher of the state or applicable local minimum wage (if any).
Fortunately, the California Department of Industrial Relations has recently added to its “Minimum Wage Frequently Asked Questions” webpage a link to the UC Berkeley Labor Center’s “Inventory of U.S. City and County Minimum Wage Ordinances” webpage. There, the Labor Center shares a list of California city and county minimum wage rates, which was updated as recently as July 1, 2024.
Employers may review the list of California city and county minimum wage rates for updates, particularly when they expand into new geographical areas of the state, or around January 1 and July 1, when many rates are updated. New or different local minimum wage ordinances may be passed into law at any time.
In addition, California employers should keep in mind that there is a special minimum wage for fast food workers that went into effect on April 1, 2024, and there will soon be a higher health care worker minimum wage as well.
Conclusion
If you have any questions about minimum wage or other employment law requirements, feel free to contact the authors of this EAC Update or your own employment attorney.
Reprinted with permission from AALRR
Every employee in the country is classified by law as either “exempt” or “non-exempt.” Exempt employees are exempt from wage and hour rules that mandate clocking in and out, rest breaks, meal periods, overtime, etc. Non-exempt employees are not exempt from those rules.
In order to qualify as exempt, two factors must be met. First, the employee must hold a job that the law permits to be classified as exempt. Second, the employee must earn a guaranteed base salary that meets certain minimum requirements. Both federal and California state law applies to these rules. The current requirements are as follows:
Because California’s minimum required salary is higher than the federal minimum required salary, employers with employees only in California can generally focus solely on the California rule and ignore the federal rule.
For years, federal regulators have played a game tug-of-war in their attempts to increase the federal minimum salary that must be paid to exempt employees. At long last, a two-step increase plan has cleared all hurdles and is set to go into effect as follows:
Despite these increases, the California minimum salary requirement remains higher than the federal minimum salary requirement.
What does this mean for California employers? If you do not have any employees outside of California, these changes do not impact you. Continue to monitor and comply with all California requirements. Please note – the California minimum salary requirement increases every January 1st. It is recommended that all employers with exempt employees set a recurring calendar reminder for every December to determine the new minimum salary requirement and make any necessary adjustments.
If you do have employees outside of California and any of those employees are classified as exempt, audit their salaries now and make any necessary changes in order to comply (a) no later than July 1st, (b) no later than January 1st, and (c) every January 1st thereafter.
Federal law also allows for a “Highly Compensated Employee” (HCE) exemption by which employees who earn not less than the designated amount automatically qualify as exempt, whether or not their job qualifies as exempt. Unfortunately, this rule does not apply to employees in California. If you do have HCE’s who work outside of California, the rules may apply. If so, here are the applicable minimum salary requirements for HCE’s under federal law:
Of course, if you have any questions please contact the authors of the Update or your usual counsel.
Reprinted with permission from Scott & Whitehead.
Employers may need to update their harassment-prevention policies, procedures, and trainings now that the federal government released long-anticipated guidance on the topic. The Equal Employment Opportunity Commission’s enforcement guidance on harassment in the workplace was updated yesterday for the first time in 30 years to adapt existing standards to the modern workplace. Specifically, the agency wants to provide clarity in light of evolving protections for LGBTQ+ employees and the recent uptick in sexual harassment and racial harassment cases. While not governing law, the guidance serves as a useful tool for employers and will surely be referenced by EEOC staff, employment attorneys, and courts. What are the five biggest takeaways for employers, and what next steps should you consider taking now?
How We Got Here
Workplace harassment claims have become a serious matter for employers, particularly in the last several years. The EEOC first proposed new guidance on workplace harassment in 2017 amidst the #MeToo movement, but the agency never finalized it due to political infighting. This new guidance, released yesterday, is the first guidance on harassment since the 1990s.
Top 5 Takeaways for Employers
What’s Next? Legal Challenges Expected
After the EEOC initially proposed the updates back in September 2023, a coalition of 20 states said they would take legal action if the agency finalized certain aspects of the guidance. For instance, the group said the EEOC exceeded its authority by interpreting Bostock’s employment protections based on gender-identity too broadly. In response, the EEOC said, “The proposed guidance did not attempt to – nor does the final guidance attempt to — impose new legal obligations on employers with respect to any aspect of workplace harassment law, including gender identity discrimination. Nor does the guidance exceed the scope of the Supreme Court’s decision in Bostock.”
Based on the EEOC’s response and yesterday’s finalized guidance, we expect the coalition to prepare a legal challenge for the courts to have the final say on the fate of this new guidance.
What Should Employers Do?
While legal challenges may impact the EEOC’s enforcement guidance, the update took effect immediately. You should thus review your policies in light of the changes. Consider taking the following steps to stay compliant and promote a positive workplace culture:
Conclusion
These can be challenging times for employers, but this is also a great opportunity to propel your organization further. You can take this opportunity to reexamine your organizational culture can ensure you are providing a safe and professional working environment for everyone in your service.
If you have questions about the guidance, feel free to reach out to your employment law attorney or the authors of this Update.
Reprinted with permission from Fisher Phillips.
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California just prescribed another big dose of employment regulations in the workplace, this time in the form of requiring virtually all California employers to implement a comprehensive Workplace Violence Prevention Plan (WVPP). The July 1, 2024 compliance deadline is rapidly approaching, so consider this your wake-up call! Although there may be some businesses exempt from this law, those exemptions are very few.
The law defines “workplace violence” very broadly – essentially any violent act or threat occurring in the workplace. This includes the obvious examples, like physical assaults, weapon threats, and verbal/written attacks. But it goes further, labeling even comments that cause psychological stress or trauma as workplace violence, even if no other injury results. Thus, the required WVPP must cover a whole host of issues, not just incidents of what would typically be considered workplace violence.
So, what is actually required by this law? First, the WVPP must include a comprehensive written policythat is easily accessible by staff, whether it is combined with the required Injury and Illness Prevention Plan (IIPP), or it is a stand-alone plan. Developing the WVPP requires thoughtful customization based on each employer’s specific needs. For example, some employers may be situated in a high-crime area or near a business that keeps a lot of cash on hand, while others may be more likely to be dealing with troubled individuals. The plan must designate responsible individuals to lead its implementation and include various specific procedures, such as involving employees in the development and implementation of the plan.
But wait, there’s more! This law isn’t messing around – it also requires WVPP training of all employees when the plan is first rolled out, as well as annually. Additional training is also required when new or previously unrecognized workplace violence hazards are identified, or when there are other changes to the plan.
Employers are also required to record every workplace violence incident in a “violence incident log,” which must include very specific information on each incident. Those records must be retained for at least five years.
Cal/OSHA recently published a model Workplace Violence Prevention Plan. The model plan provides a starting point with examples and suggested language, but it is far from a readily usable product. As noted above, the law requires employers to develop a plan that considers the unique risks that each employer faces. Potential exposure to workplace violence varies considerably by workplace, industry and geographical location. Therefore, the model plan should only be used as a starting point.
If you have questions, contact your employment law attorney or the authors of this Update.
Reprinted with permission from Scott & Whitehead
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