2016 Minimum Wage Hikes

1/1/2016 – California – Non-Exempt $10.00/hr. – Exempt $41,600 annually – All Employers

7/1/2016

City of Los Angeles – Non-Exempt – $10.50/hr – Employers with 26+ employees
Unincorporated areas of Los Angeles County – $10.50/hr – Employers with 26+ employees
City of Pasadena – $10.50/hr. – Employers with 26+ employees
NOTE: There are other cities throughout California who raised their minimum wage effective July 1, 2016.  Please check with your local government’s website for details.

 

12/1/2016 – Nationwide – FLSA* – exempt employees – $47,476 annually – all Employers

*Employers in California will have to satisfy the higher federal salary level test for employees to qualify as exempt under both federal and state laws effective 12/1/2016.  There are no changes to the duties tests for exempt employees

Mandatory Paid Sick Leave

California’s new sick leave law took effect January 1, 2015.  HOWEVER, the right to accrue and take sick leave under this law does not take effect until July 1, 2015.

This law is applicable to all employees who work in California for a minimum of 30 calendar days within a year (except in-home support service employees, some airline employees who have equivalent benefits and possibly those covered by a CBA – depends on the contract).  It includes full-time, part-time and temporary employees.

Key Requirements for Compliance

1. Display required poster* where all employees can see it (effective 1/1/2015).  Create policy and share with staff

2. Provide written notice to each employee and at time of hire

3. Ensure all eligible employees accrue one hour of paid sick leave for every 30 hours worked

4. Allow employees to use accrued sick leave upon request

5. Eligible employees must receive written notification every pay period of how much sick leave they have accrued.  Can be on pay stub or other document

6. Must keep records for three years on accrual and usage by each employee

*Click on the following link to get a printable copy of the required poster. Needs to be posted immediately.

https://www.dir.ca.gov/DLSE/Publications/Paid_Sick_Days_Poster_Template_(11_2014).pdf

Click on the following link to get more detailed information from the California Department of Industrial Relations

http://www.dir.ca.gov/dlse/ab1522.html

Feel free to contact me for help in creating a new or updated policy to cover this law.