2019 Employee Payroll and Reimbursement Changes
The New Year brings change, and there is no exception for employers. With the transition into 2019, it is time to take note of a few key changes that will affect how you pay and reimburse your employees. There are other new employment laws that we will post about after the first, but these key changes are important to know administratively from day one.
Effective January 1, 2019 employers are subject to the following requirements:
Minimum Wage:
California is on track to have the minimum wage reach $15.00/hour for all employers by 2023 through a series of annual increases. The chart below shows the new rates effective January 1, 2019.
25 or Fewer Employees | 26 or More Employees | |
Minimum Hourly Wage | $11.00/hour | $12.00/hour |
Minimum Exempt Salary | $45,760/year | $49,920/year |
IRS Mileage Reimbursement Rate:
This year the IRS mileage reimbursement rate has increased to 58 cents per mile, a 3.5 cent per mile increase over last year. The mileage reimbursement rate for miles driven in the service of a charitable organization remains unchanged at 14 cents per mile.
Overtime for Agricultural Workers:
California agricultural employers with 26 or more employees need to adjust their overtime calculations this year. Overtime calculations will remain unchanged for agricultural employers with 25 or fewer employees. Day of Rest overtime requirements remain applicable for agricultural employers of all sizes. The chart below shows how overtime should be calculated based on the hours worked and employer size:
25 or Fewer Employees | 26 or More Employees | |
Daily OT (1.5 X Regular Rate) | > 10 hours | > 9.5 hours |
Weekly OT (1.5 X Regular Rate) | > 60 hours | > 55 hours |
Day of Rest Entitlement (1.5 X Regular Rate) | First 8 hours on 7th Consecutive Day of Work | First 8 hours on 7th Consecutive Day of Work |
Day of Rest Entitlement (2 X Regular Rate) | > 8 hours on 7th Consecutive Day of work | > 8 hours on 7th Consecutive Day of work |