New California Minimum Wage Effects More than Just Entry-level Employees
The Grinch has come early for many employers as the new minimum wage of $10.00 an hour takes effect on January 1, 2016. Most employers are already aware of this increase and have taken steps to update their payroll, etc. for their low-level employees. However, many employers either forget or are unaware of the domino effect that increases to the minimum wage have on other higher-level employees.
For example, beginning January 1, 2016, salaried employees will need to be paid a minimum of $41,600 per year, an increase of $4,160 from the prior minimum of $37,440. This change could catch the unwary employer by surprise. Employers should review all employee positions and schedules to ensure that all employee’s pay is compliant with the upcoming minimum wage increases.
Next month, I will discuss the effect of the increased minimum wage on employees who work split shifts.
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