California’s New Minimum Wage Affects Wine Industry Employers

As of July 1, 2014 California’s minimum wage is $9.00 per hour. All employers with employees making minimum wage should review their payroll practices to ensure the change has been implemented moving forward. Employers will need to update their Wage Notices to reflect the change for new employees, but existing employees can receive notice through their paystubs.

In addition, as of July 1st all exempt employees must make at least $37,440 per year. This is based on the calculation of two times the minimum wage for the equivalent of a full time worker, which is set at 2080 hours per year. By definition exempt employees are paid for their work, not the number of hours worked. This may affect your piece-rate practices as well, so take care to ensure that employees receiving piece rate wages do not receive less than this new rate per hour.

These rates will be in effect until January 1, 2016 when the rate will increase to $10.00 per hour for non-exempt, hourly employees and $41,600 for exempt salaried employees. Finally, note that this is a state minimum wage. Some jurisdictions require even more per hour, and the employee always receives the benefit of the most generous policy.

For more information or assistance contact Greg Walsh ([email protected]) or Jennifer Phillips ([email protected]) in Dickenson, Peatman & Fogarty’s labor and employment practice group.