Minimum Wage Rate Increases on July 1st
Consult With Employment Law & Consulting Legal Firm Bois & Macdonald
Effective July 1, 2014, the State of California will increase the minimum hourly wage rate from $8.00 to $9.00 for both tipped and non-tipped employees. Similar minimum wage rate increases will apply in other states (See, e.g.http://jobsearch.about.com/od/minimumwage/a/minimum-wage-rates-2014.htm). This will trigger changes for almost every business with hourly employees. The new minimum wage will require all businesses with hourly wage earning employees to undertake a number of tasks.
WHAT DO YOU NEED TO DO?
1. Notify your Payroll Specialist. Your business needs to change the hourly rate for your affected employees, starting on July 1, 2014. Preferably, you should do this at least one week before the July 1st change takes effect.
2. Reevaluate the wage rates for all of your hourly employees. You should review the wage rates for all current employees and you should also potentially increase the hourly wages for some of your higher wage earners. For example, if you currently have employees earning $8 per hour, $9 per hour and $10 per hour you may need to consider raising the wage rates for your $9 and $10 per hour employees to maintain morale and retain valuable employees.
3. Revise your Employee Handbook. Your Employee Handbook should contain a Minimum Wage Policy. Your current policy should be updated to reflect the new wage rates and overtime pay. If you don’t currently have a Minimum Wage Policy this is an important time to add one to your handbook.
4. Post the 2014 Minimum Wage Poster. All employers must prominently display a minimum wage poster. Your current poster should be updated to reflect the new wage rates and overtime pay. If you don’t currently have a Minimum Wage Poster this is an important time to add one to your break room or time clock area. To purchase the new minimum wage law poster See, e.g. ww.laborlawcenter.com/p-23-california-labor-law-posters.aspx.
5. Review Exempt Employee Salaries and Wage Agreements. You should review the base salary for all exempt employees and all wage agreements with employees. Exempt employees must be paid at least two times the minimum wage. Wage agreements must provide for payment to employees of at least the minimum wage.