Globally, there are more pay-equity/pay transparency laws than ever before. California is the latest U.S. State to have such laws. California Governor Gavin Newsom approved SB 1162 in law on September 27, 2022. The state’s 2020 law will now be amended by several unpublished regulations and pay equity rules. It will take effect on January 1, 20,23.
Here’s a quick overview of the law and some examples from the real world. Also, learn how employers can use Pay Equity Auditing Software to comply with the forthcoming requirements and position themselves better for future pay equity laws.
California’s SB 1162 sets the standard for pay equity.
Private employers throughout the U.S. are affected by SB 1162, including non-profits. The law amends California’s SB973 law regarding pay data reporting. In 2020, the law required private employers with at least 100 employees to submit a data report categorizing their employees by gender, race/ethnicity, or job category. Employers who have already filed a comparable report with the Equal Employment Opportunity Commission could submit one report to satisfy both the EEOC requirements and SB 973.
Is it possible for an employee to accept a lower minimum wage than the minimum wage in return?
No. No. A contract between the employee or employer may not violate any legislation designed to protect employees. Civil Code Sections 1768 and 3513
Is the minimum salary the same for adult and minor employees alike?
Yes. In terms of minimum wage payment, there is no distinction between adults and minors.
Employers are required to pay the minimum wage if they have only one employee.
Yes. Employers must pay minimum wage to employees, except for any other exemptions, as discussed in question 4.
What is California’s Minimum Salary?
California’s minimum wage for employers with 25 or fewer employees in 2022 is $14 per hour. Employers that have 26 or more employees are paid $15 an hour. To even out the playing field, all employers will see their minimum wage rate rise to $15.50 in 2023. This means that employees who earn $14 per hour in 2023 will see an increase of $1.50 per hour. The minimum base salary for employees who are not exempt will remain the same.
California’s labor laws also include local regulations that add complexity. If you operate in more than one place, you may be subject to multiple minimum wage levels within a day. Incorrect calculations could lead to wage and hours lawsuits.
How should small business owners prepare themselves for increased minimum wage increases?
Even though minimum wage increases can challenge small businesses, there is a way to stay ahead. Small business owners can avoid being caught out by keeping abreast of changes to the minimum wages and adjusting their prices and compensation accordingly.
Reviewing your budget and financial records is crucial to prepare for any minimum wage increases.
You will likely need to make tough financial decisions. Look at all your employees’ pay, not just the ones that get an increase. This may cause some staff to have a lower pay rate than your senior staff, who earn just above the minimum wage rate.
The business’s impact can be minimized by ensuring that professional employees are informed about changes. Customers should be informed about any price changes.
What is L.A. County’s minimum income?
California has many cities and counties that have their minimum wage. It is often different from the California minimum. The change was made to keep pace with the rising cost of living in some regions of California. The minimum wage for L.A. county in 2020 was $14.25, which included large (26 or more employees) and small (25 or fewer employees). In 2021, the minimum hourly wage for all businesses was $15
Los Angeles has its very own minimum wage laws. They differ from the whole county. The Los Angeles minimum wage for all employers, has increased to $16.04, effective July 1, 2022.
What is AB 257, and how does it work?
Fast Food Accountability and Standards Recovery Act, also known as the FAST Recovery Act (AB 257), was created to address safety concerns reported to fast food workers during the Pandemic.
One such instance was that a Mcdonalds’ restaurant in Oakland settled a lawsuit filed by employees who claimed they had been forced to work during the Pandemic. They said they were given coffee filters and diapers to mask their faces.
According to the bill, AB 257 is an attempt to improve rights and conditions for the “largest, fastest growing group of low-wage employees in the state.”
According to the bill, “For years, fast food has been fraught with abuse, low-pay, few benefits, no job security, with California workers exposed to high rates for employment violations, including wage fraud, sexual harassment, discrimination.”
Employers are required to follow stricter wage standards.
Employers are required to pay employees according to a stricter wage norm.
Some employees are exempted from the state’s minimum wage law, including outside salespeople or the employer’s spouse or child. Suppose there is an economic slowdown (defined by negative job growth combined with negative sales for some time), or a deficit is projected for the current budget year. In that case, the governor may suspend a planned wage increase.
Conclusion
In over a decade, $7.25 has been the federal minimum wage. It is the longest stretch of the nation’s past without a minimum-wage increase.
This has led smaller jurisdictions to adopt many new minimum wage laws over the last few decades. California’s progressive state has made minimum wage a hot topic for employment law.
California employers must keep an eye on the ever-changing rates within the state. This is particularly important at the local level. As rates change from regular rates to indexing, it will only get more complicated.