C. notice requirements The minimum wage increase affects employer notice requirements related to the minimum wage posting, itemized wage statements and wage notices. First, employers must post California’s official Minimum Wage Order (MW- 2014) in a conspicuous location frequented by employees. The official notice includes the increase for January 1, 2016. Second, California employers must provide each employee with an itemized statement, in writing, at the time wages are paid (Labor Code Section 226). Among other mandatory information, the itemized wage statement must include all applicable hourly rates in effect during the pay period and the corresponding number of hours the employee worked at each hourly rate. Third, employers in California must provide nonexempt employees with a wage notice pursuant to Labor Code Section 2810.5. The written notice must be provided at time of hire and again within seven calendar days after a change is made to any information in the notice. Among other things, employers are required to notify nonexempt employees, in writing, when there is any change to: • The employee’s rate of pay; • Any overtime rates of pay; and • Any allowances, such as meal or lodging allowances, claimed as part of the minimum wage (Labor Code Section 2810.5). NOTE: If an employee’s rate of pay increased on January 1, 2016 due to the minimum wage increase, the employee must have received notice from his/her employer by January 7, 2016. The separate wage notice is not required if the employer has reflected the change on a timely itemized wage statement, if the statement meets all legal requirements. Lodging operators need to bear in mind that additional minimum wage increases can be created in a number of other ways. First, Senate Bill 3 is pending in the Legislature, and if it becomes law, it would raise the minimum wage, in two steps, to $13/hour as of July 1, 2017, and it would also require that starting January 1, 2019, the automatic annual adjustment to the minimum wage based on the Consumer Price Index. It is also possible that additional minimum wage bills will be introduced when the Legislature is back in session. Increases could also be created by means of the ballot box. Currently, proposed initiative 1695 (15-0032) is being circulated for signatures to place it on the ballot. (Circulation Deadline: 01/27/16; Signatures Required: 365,880 (25% of Signatures Reached 09/11/15).) If adopted by the voters, this measure would increase the minimum wage to $11.00 per hour, effective January 1, 2017, and by $1.00 each of the next four years, to $15.00 per hour on January 1, 2021. Thereafter, adjusts the minimum wage annually based on the rate of inflation for the previous year, using the California Consumer Price Index for urban Wage Earners and Clerical Workers. In addition, the Service Employees International Union has announced its own bid to increase the statewide minimum wage. This could result in dueling pay measures aimed for next year’s ballot amid persistent concerns over income inequality. This proposed initiative would boost the base wage to $15 per hour by 2020, and mandate six paid sick says a year. The previous $9-an-hour minimum wage was scheduled to increase to $10 on Jan. 1. SEIU-United Healthcare Workers West, is also pursuing a separate measure to gradually hike the minimum wage to $15 an hour by 2021. Lastly, lodging operators need to determine if their local city or county has its own minimum wage requirement. There are currently dozens of local jurisdictions that have adopted their own minimum wage ordinances. CH&LA members with questions about this issue are urged to contact our Member Legal Advisor, Jim Abrams (jim@calodging.com). WinTeR 2016 California Hotel & Lodging Association 11 Be PRePARed on JAnuARy 1, 2016, CALifoRniA’S minimum wage increased to $10 per hour from the existing minimum wage of $9 per hour. Lodging operators need to take steps to ensure that they comply with this minimum wage increase. Also, employers should remember that state enforcement agencies have made it a top priority to stop employers from engaging in so-called “wage theft,” which includes not paying the minimum wage for all hours worked. Whenever the minimum wage goes up, the increase impacts a number of other employment practices that are tied to the minimum wage. For example: • Overtime • Minimum Salary for Exempt Employees • Notice Requirements • Meals and Lodging • Piece-Rate Employees • draws Against Commissions • Tools/Equipment • Subminimum Wage • uniform Allowance • Split-Shift Premium • Workers’ Compensation Premiums A. overtime The minimum wage rate change affects overtime. Effective January 1, 2016, employees who work for minimum wage and perform work that qualifies for overtime must be paid $15 per hour for time and one-half or $20 per hour for double-time. B. exempt employees Effective January 1, 2016, the minimum salary that must be paid to qualify employees as exempt from overtime will increase to $3,466.67 per month (or $41,600 annually) from $3,120 per month (or $37,440 annually). (To be exempt, employees must also meet the “duties” test.)
CH LA Lodging News Winter 2015 2016
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