California labor law protects the rights of California employees and this includes many new laws passed this year that also protect new immigrants.  In addition to protecting meal and rest breaks, the California labor code covers issues such as overtime pay, tip pooling laws, vacation laws and more.

California Employers Need to be Aware of Labor Law Changes

Here is an overview of some of the most relevant and pertinent labor law changes that are now in effect along with a few that will change again at the beginning of 2017.

California Senate Bill 3

Minimum wage: The $10.50 minimum starts Jan. 1, 2017, for those with 26 or more employees, and Jan. 1, 2018 for businesses with 25 or fewer employees, with annual increases to follow. By 2023, the minimum wage will be $15 per hour.

Salaried employees: To be exempt from overtime, salaried employees must make double the minimum wage, $62,400.

Commission sales employees: To be exempt from overtime, commissioned employees must make 1.5 times the minimum wage — $22.50 per hour each pay period, averaging is not permitted.

Paid sick leave

Healthy Workplaces, Healthy Families Act: This law, amended by Senate Bill 3, gives employees the right to accrue and use sick leave after they have worked for the employer for 30 days.

Employers can either grant three days — 24 hours — of sick leave after 90 days of work or have an accrual policy where employees earn an hour of sick leave for every 30 hours worked. If an employee leaves and returns within a year, as seasonal workers do, the employer must restore the accrued and unused sick leave.

Employers with a paid time off plan must meet the accrual, carryover and use requirements.

Assembly Bill 908

This bill, signed by the governor on April 11, 2016, increased the paid family leave time from four to six weeks.

Assembly Bill 1513

Break periods and pay. Piece rate changes for employers who must now pay at least the minimum wage with no reduction in pay during mandated breaks - 10 minutes for restaurant employees after three-and one-half hours, and 10 minutes for manufacturing workers after four hours. This time and pay must be listed separately on the employee’s wage stub.

Senate Bill 358

Fair Pay Act: This law, which took effect January 1, 2016 requires employers must show a wage differential is based on seniority, merit or quality or quantity of production, or a factor other than sex.

Staying on Top of California Labor Laws

Many of these new regulations expand the scope of risk for employers, and require new workplace postings or changes to existing workplace policies. We recommend that all California employers consult with experienced employment counsel to ensure compliance.

Accurate and timely management and compliance practices are required for every business and every payroll professional. But there are options.

Accuchex, a reputable payroll management services provider, can not only relieve you of the burden of your ongoing payroll process demands, but can potentially prove to be a more cost-effective solution, as well.

To get your Free Download: Payroll Outsourcing Guide click the button below and let us help you make an informed decision. Or you can call Accuchex Payroll Management Services at 877-422-2824.