California’s Minimum Wage Increase: Review Your Pay Practices

Jun 6 2014 - Compensation, Minimum Wage - Gail Cecchettini Whaley

On July 1, 2014, California’s minimum wage increases to $9 per hour from the existing minimum wage of $8 per hour. This is the first increase to the state minimum wage since January 1, 2008. The minimum wage will increase a second time to $10 per hour on January 1, 2016.

Employers need to prepare for the minimum wage increase. Also, employers should remember that state enforcement agencies have made it a top priority to stop employers from engaging in so-called “wage theft,” which includes not paying the minimum wage for all hours worked.

Employers should examine all pay practices that might be affected by the minimum wage increase. Hint: There are more than you might think!

Practices that may need review include overtime rates of pay, exempt/nonexempt classifications, meal and lodging credits, commission issues, notice requirements and more.

Gail Cecchettini Whaley, CalChamber Employment Law Counsel/Content

CalChamber members can get detailed coverage on pay practices and the increased minimum wage in the June 5 edition of HRCalifornia Extra (log in required). Not a member? Learn more about what HRCalifornia can do for you.

Also, our 2014 California and Federal Employment Notices poster contains the new Minimum Wage Order.

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