October 25, 2021

Volume XI, Number 298

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October 22, 2021

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Employers Must Post Updated Minimum Wage Order by July 1, 2014

Effective July 1, 2014, the California minimum wage increases to $9.00 per hour (from $8.00). It will increase further to $10.00 per hour effective January 1, 2016. Employers must post the applicable California Department of Industrial Relations Wage Orders, including new MW-2014, which has been updated to reflect the new minimum wage. There are 17 industry or occupation-specific Wage Orders, copies of which are available from the Division of Labor Standards Enforcement, as well as from employer trade associations.

A less-advertised consequence of this increase is the impact it will have on the salary test for preserving an employee's exempt status. Under California law, a supervisor classified as exempt must be paid a monthly salary that is no less than two times the wages paid to a full-time minimum wage employee. After July 1, 2014, the minimum monthly salary to preserve exempt status under California Labor Code section 515, will rise to $3,120 per month, annualized to $37,440. In addition, the penalties available for minimum wage violations will now include “liquidated damages.”

© 2010-2021 Allen Matkins Leck Gamble Mallory & Natsis LLP National Law Review, Volume IV, Number 177
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About this Author

Dwight L. Armstrong, Employment litigator, Allen Matkins Law Firm
Partner

Dwight L. Armstrong is a partner in the firm's Orange County office. Dwight manages the firm's Labor and Employment Law Practice Group and is experienced in both litigation and transactional matters. He represents employers and management with a wide variety of employment litigation, ranging from wrongful termination and employment discrimination lawsuits to wage and hour class actions. Dwight has also handled numerous trade secret, no-solicitation and unfair competition cases. In addition, Dwight’s practice involves substantial preventative counseling and advice,...

949-851-5424
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