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For companies with 26 or more on payroll,California Labor Code 1182.12directs yet another statewide increase in minimum hourly wages, from $10 to $10.50/hour, starting January 1, 2017. Employers with 25 or fewer on payroll must comply with that increase one year later, on January 1, 2018. See,California’s Gradual Increases in Minimum Wage, to Reach $15.00 Per Hour by January 1, 2022(April, 2016).
For companies with 26 or more on payroll, California Labor Code 1182.12 directs yet another statewide increase in minimum hourly wages, from $10 to $10.50/hour, starting January 1, 2017. Employers with 25 or fewer on payroll must comply with that increase one year later, on January 1, 2018. See, California’s Gradual Increases in Minimum Wage, to Reach $15.00 Per Hour by January 1, 2022 (April, 2016).
Many businesses are subject to yet higher minimum wage requirements imposed by various cities and counties around the state. See, Hot Off the Presses Minimum Wage Rates List Updated for 2017 (December, 2016).
This minimum wage increase also raises the minimum salary threshold for California’s exempt-from-overtime professional, administrative, and executive employees, calculated at two-times minimum wage for a 40 hour week. For businesses employing 26 or more, that minimum now increases from $800 weekly, $3,466.67 monthly and $41,600 yearly to $840/week, $3,640/month, and $43,680/year. See also, Be Prepared for Statewide and Local Minimum Wage Increases (November, 2015).
For further information, please contact one of our attorneys Tim Bowles, Cindy Bamforth or Helena Kobrin.
Helena Kobrin,
December 31, 2016
California’s local minimum wage ordinances continue to spread like wildfire. Since publishing ourMinimum Wage Rates For 2017article two weeks ago (December 16, 2016), the City of San Leandro enacted their own minimum wage rates and regulations.
California’s local minimum wage ordinances continue to spread like wildfire. Since publishing our Minimum Wage Rates For 2017 article two weeks ago (December 16, 2016), the City of San Leandro enacted their own minimum wage rates and regulations.
This updated 2017 list includes San Leandro’s ordinance as well as San Jose’s July, 2017 minimum wage rate increase.
To help business owners keep track of local minimum wage increases, The Employment Policies Institute (EPI) launched a mobile app called “Wage Engage.” The app tracks proposed minimum wage legislation and enables the users to voice their concerns to their legislators directly from the app.
For more information, please contact one of our attorneys, Tim Bowles, Cindy Bamforth, or Helena Kobrin.
Cindy Bamforth
December 28, 2016
California Assembly Bill (AB) 1978, enacted September 2016 as the Property Services Protection law (the Act), will require janitorial service providers to register annually with the Division of Labor Standards Enforcement (DLSE) and to provide sexual harassment training to their employees. The Act covers all enterprises providing janitorial services under a contract, subcontract or franchise agreements and who have at least one “covered worker.” The new law refers to any such business as an “emp
California Assembly Bill (AB) 1978, enacted September 2016 as the Property Services Protection law (the Act), will require janitorial service providers to register annually with the Division of Labor Standards Enforcement (DLSE) and to provide sexual harassment training to their employees. The Act covers all enterprises providing janitorial services under a contract, subcontract or franchise agreements and who have at least one “covered worker.” The new law refers to any such business as an “employer” even if the covered worker/janitor is an independent contractor or franchisee.
The state legislature enacted the Act after Frontline’s “Rape on the Night Shift.” and University of California, Berkeley Center for Labor Research and Education’s “Race to the Bottom” reported widespread sexual abuse of primarily female workers in the janitorial sector.
The Act requires all janitorial employers to:
The Act also includes civil penalties of $100/day up to $10,000 for any employer that does not register. Beginning July 1, 2018, any entity or individual that contracts with an unregistered business will be subject to a civil penalty between $2,000 and $10,000 for a first offense and from $10,000 to $25,000 for subsequent offenses.
For further information, please contact Tim Bowles, Cindy Bamforth, or Helena Kobrin.
Helena Kobrin
December 20, 2016
The Internal Revenue Service (IRS) has announceda decrease of itsoptional standard mileage reimbursementrate for an employee’s business miles from 54 cents to53.5 cents, effective January 1, 2017.
The Internal Revenue Service (IRS) has announced a decrease of its optional standard mileage reimbursement rate for an employee’s business miles from 54 cents to 53.5 cents, effective January 1, 2017.
The government bases its standard mileage rate on an annual study of fixed and variable automotive operating costs, including insurance, repairs, maintenance and fuel.
Under California Labor Code section 2802, employers must reimburse employees for all actual work-related expenses necessarily incurred.
According to California’s Division of Labor Standards Enforcement’s Enforcement Policies and Interpretations Manual (p.102), using the IRS mileage reimbursement rate will satisfy an employer’s reimbursement obligation absent evidence demonstrating otherwise. For example, if the employee can show the IRS reimbursement rate does not cover all of his/her actual and necessary business-related vehicle expenses, the employer must pay the difference.
For further information, please contact Tim Bowles, Cindy Bamforth or Helena Kobrin.
Cindy Bamforth
December 16, 2016
California minimum wage will increase to $10.50 per hour on January 1, 2017 for employers with 26 or more employees (smaller employers will continue to pay $10.00 per hour until January 1, 2018) then increase each year until reaching $15 per hour in 2022. SeeCalifornia’s Gradual Increases in Minimum Wage, to Reach $15.00 Per Hour by January 1, 2022(April, 2016).
California minimum wage will increase to $10.50 per hour on January 1, 2017 for employers with 26 or more employees (smaller employers will continue to pay $10.00 per hour until January 1, 2018) then increase each year until reaching $15 per hour in 2022. See California’s Gradual Increases in Minimum Wage, to Reach $15.00 Per Hour by January 1, 2022 (April, 2016).
Concurrently, many California cities (and two counties) have implemented their own minimum wage ordinances. Employers therefore should check regularly for any new or revised minimum wage.
Below is a comprehensive list of currently enacted minimum wage rates in effect on January 1, 2017 or increasing later in the year for all applicable locations that have enacted their own minimum wage ordinances.
See also:
For more information, please contact one of our attorneys, Tim Bowles, Cindy Bamforth or Helena Kobrin.
Cindy Bamforth
December 12, 2016
A new California law,Health and Safety Code section 118600, requires that business establishments, places of public accommodation, and state or local government agencies must designate their single-user toilet facilities as all-gender facilities. The law provides that such facilities are those that are designated for use by a single occupant or for family or assisted use.
A new California law, Health and Safety Code section 118600, requires that business establishments, places of public accommodation, and state or local government agencies must designate their single-user toilet facilities as all-gender facilities. The law provides that such facilities are those that are designated for use by a single occupant or for family or assisted use.
This statute goes into effect on March 1, 2017. There are specific requirements for the identifying signage for unisex toilets in Chapter 11B, section 213.2.1-.3 of the California Building Code, which are currently being revised.
Nothing in the statute requires a business that does not already have them to create single occupant toilet facilities.
For more information, please contact one of our attorneys Tim Bowles, Cindy Bamforth or Helena Kobrin.
Helena Kobrin
December 7, 2016
California Labor Codesections 515.5and515.6exempt certain computer software professionals and licensed physicians and surgeons from overtime compensation as long as they receive at least certain specified minimum hourly rates of pay.
California Labor Code sections 515.5 and 515.6 exempt certain computer software professionals and licensed physicians and surgeons from overtime compensation as long as they receive at least certain specified minimum hourly rates of pay.
As we recently covered in Overtime – Exempt Physicians and Surgeons Minimum Hourly Rate Increases Are Near and Computer Software Professional Overtime Exemption Requirement, these rates were to increase January 2017 from $76.24 to $77.23 (physicians) and from $41.85 to $42.39 (computer software professionals).
However, by an October 25, 2016 announcement California’s Department of Industrial Relations (DIR) has revised those post-2016 rates: (a) a minimum equivalent of $77.15 per hour for eligible physicians and surgeons (an eight cent reduction); and (b) a minimum hourly rate of $42.35 for otherwise-qualified computer software employees (a four cent reduction). Alternatively, an otherwise-qualified software employee paid by salary is eligible on minimum annual compensation of $88,231.36, payable at least once monthly at no less than $7,352.62.
For more information, please contact one of our attorneys Tim Bowles, Cindy Bamforth or Helena Kobrin.
Cindy Bamforth
updated, revised December 3, 2016
California’s Home Care Organization Consumer Protection Act(the Act) required all home health care organizations (HCOs) to obtain a license from the Home Care Services Bureau (HCSB) of the Department of Social Services (DSS) by July 1, 2016 and to register their home care aides with the HCSB. See,You Snooze, You Lose( April, 2016) andHome Health Care Organizations Last Chance to Continue Operations After June 30, 2016(June, 2016).
California’s Home Care Organization Consumer Protection Act (the Act) required all home health care organizations (HCOs) to obtain a license from the Home Care Services Bureau (HCSB) of the Department of Social Services (DSS) by July 1, 2016 and to register their home care aides with the HCSB. See, You Snooze, You Lose ( April, 2016) and Home Health Care Organizations Last Chance to Continue Operations After June 30, 2016 (June, 2016).
For those HCOs that are now licensed, the HCSB will soon be implementing the next phase of the Act by commencing unannounced biennial (i.e., every two years) inspections of all licensees. See, Health and Safety Code 1796.52(b) and Written Directive 90-050(a). The HCSB analyst conducting the inspection will focus on an HCO’s compliance with applicable laws with final report to note any deficiencies found. The HCO will then need to implement a plan of correction to remedy each deficiency.
The HCSB has stated that it will start these inspections in late December, 2016 or January, 2017, minimally to include review of premises, books, and records. Refusal to permit an inspection is grounds for the HCSB to revoke an HCO’s license.
The HCSB has created an HCO inspection checklist. An HCO can use this document to confirm it has all relevant records hard copy and to determine and fix any potential deficiencies before an inspection occurs. Analysts will not accept electronic copies.
The analyst is to come to the inspection with all HCSB information on any outstanding fees; consumer complaints; the background checks of all associated home care aides, owners and administrative staff with access to clients; and the status of any waivers or exceptions to the Act’s provisions.
How long an inspection will take depends on the size of the HCO, how well it has organized its records, and the number of deficiencies found. Obviously, the better an HCO can prepare for the visit, the smoother and faster the inspection is likely to go.
In its October webinar, the HCSB encouraged HCOs to provide feedback during this initial inspection process.
For more information, please contact one of our attorneys Tim Bowles, Cindy Bamforth or Helena Kobrin.
Helena Kobrin
December 1, 2016
Employee uniforms often contribute to creating a vital image for a business. Most people recognize an employee working in a particular chain super store by their red shirt and khaki pants, or a manager at a well-known food market by a button-up Hawaiian shirt. A uniform can become a hallmark of a company just as much as a logo or slogan.
Employee uniforms often contribute to creating a vital image for a business. Most people recognize an employee working in a particular chain super store by their red shirt and khaki pants, or a manager at a well-known food market by a button-up Hawaiian shirt. A uniform can become a hallmark of a company just as much as a logo or slogan.
Under California Labor Code section 452, employers may require workers to wear uniforms of a specified color, quality, texture, style and form so long as the employer provides and maintains them. See, Mandatory Employee Uniforms (July, 2011).
Even if the uniform is comprised of clothing or accessories that can be worn off the job, such as tropical shirts or a plain blue polo shirt and khaki pants, the employer may still be responsible for providing such a uniform unless the clothing is commonly worn in the certain occupation and can be worn from one job to another within a specific industry (for example, a nurse’s white uniform or a black-and-white uniform for a food server).
Employers may instruct employees to maintain their issued uniforms as long as only minimal time is required for the care, such as uniforms made of material which requires only machine washing and tumble or drip drying. For uniforms requiring ironing, dry cleaning, special laundering or repairs, employers must provide maintenance or a maintenance allowance for the care.
Although California law allows employers to require deposits as security for return of uniforms, the rules are strict and generally inadvisable. See, Industrial Welfare Commission Orders, Section 9. No pay deductions are ever allowed for normal wear and tear. See, Wage Deductions (August, 2016).
Employers that require employees to wear a uniform need a good workplace policy which covers all aspects of issuing, maintaining, and returning uniforms upon termination of employment.
For more information, please contact one of our attorneys Tim Bowles, Cindy Bamforth or Helena Kobrin.
Cindy Bamforth
November 23, 2016