New Laws 2014: Minimum Wage Changes

There are a number of new employment-related laws going into effect in 2014.
I’ll be summarizing those for you in my next few blogs. Let’s start with minimum wage changes.

AB 10 raises the minimum wage in California from $8/hour to $9/hour effective July 1, 2014. The minimum wage will bump up another dollar in 2016 when it goes up to $10/hour effective January 1, 2016. The law also requires California employers to pay non-exempt employees one and one-half times their regular rate of pay for:  (1) hours worked in excess of 8 in one day; and, (2) the first 8 hours worked on the 7th consecutive day of work in any one workweek;  and two times their regular rate of pay for:  (1) hours worked in excess of 12 in one day; and, (2) hours worked in excess of 8 hours on the 7th consecutive of work in a work week.

Another law – AB 442 – increases the penalty for employers who fail to pay minimum wage. Now, in addition to existing penalties, employers cited by the Labor Commissioner for failing to pay minimum wage will be required to pay liquidated damages to the affected employee.

In the city of San Jose, minimum wage increased from $10/hour to $10.15/hour, effective January 1 this year. Also effective January 1, 2014, minimum wage in the City and County of San Francisco increased from $10.55/hour to $10.74/hour. The cities of Los Angeles and San Diego have not passed ordinances to increase the minimum wage above California’s state-wide requirements.

To avoid penalties, be sure you are complying with these new minimum wage rulings. Watch for my next blog for more information about new laws in 2014.