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.”