Reminder: Minimum wage increasing in July – prepare now!

Effective July 1, 2014, minimum wage increases to $9.00 per hour. It is imperative that you become familiar with the minimum wage requirements in California and comply with them in a timely manner.

Recognize this increase – it’s the law! Not complying with minimum wage requirements can cost you a lot of money. Therefore, it’s important to take the necessary steps to avoid any issues or penalties. Be aware of when the increase is put into action as to prevent any liabilities or fines.

Violating wage and hour laws can incur heavy fines. Back pay to employees, thousands of dollars in fines, penalties and potentially jail time for Company Owners are just some of the consequences of breaking a federal labor law. The Department of Labor Wage & Hour Division has the authority to levy penalties and fines against employers who are non-compliant.

Complete a PAF (Personnel Action Form) for all of your employees who are eligible for this increase. The PAF form is a “best practice” and an internal company document used to change the compensation of an employee.  This documents the increase and is typically kept in the employees’ personnel file after it has been processed by accounting.  Completing this form in advance for all your hourly employees and submitting them in a timely manner to payroll can prepare you for the looming law change.

Make sure that your exempt staff (managers or supervisors that are not eligible for overtime) are paid at least two times the minimum wage rate; or, $37,440 per year. It is the law! Effective July 1, 2014, if any of your exempt managers or supervisor are earning less than $37,440 per year, make sure you revise/increase their wages to earn “at least” this much. In order to meet wage & hour requirements, exempt employees (not eligible for overtime) MUST earn at minimum, double the new minimum wage.

Call us at (818) 845-5584 to learn more about the new minimum wage increase and what you can do to prevent heavy fines.