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It’s Summer - Here Come the Updates
By VICKY BROWN
Summer is here! No really – it’s here, it actually starts today.
But while I’m sure we could all use some fun time and sun time, keep in mind that July 1st is usually a big day in the Employment Law world. And this year is no exception. Here is a quick recap of things to keep top of mind that are due in or around the 1st.
So first up, and the most pressing (mostly because it’s brand new) is the Workplace Violence Prevention deadline.
All California employers – with limited exceptions – are required to create a written Workplace Violence Prevention plan that you’ll need to develop, implement, and maintain. The program also includes conducting risk assessments, providing training, establishing clear reporting procedures, and maintaining records of workplace violence incidents. The next big piece is that you have to have all employees trained on the plan no later than July 1st.
Now another big change (although surprisingly this will not have a major impact on California employers) is that the federal minimum wage rate for exempt employees is changing.
What that means in English is that some people who have previously been considered exempt from overtime, now won’t make enough money to clear the salary requirement.
You see, in addition to what the job actually entails (the duties test), there is a minimum amount of money the person has to make (the wages test).
“…some people who have previously been considered exempt from overtime, now won’t make enough money to clear the salary requirement.“
Now, on the duties side – there are categories. Specifically Executive, Administrative, Professional, Computer Professional, Outside Sales and Highly Compensated. I won’t get into the specifics of what each category is now, but we did do a deep dive in Season 1, Episode 4. So be sure to check it out.
And that’s the crux of it all – the Dept of Labor is changing that minimum wage. It used to be $684 per week, but now it’s moving up to $844 per week. And that’s not all. The Highly Compensated category has a minimum amount – and it’s changing too. It used to be that people making $107,432 per year were considered highly compensated and automatically exempt. But now you have to make at least $132,964 a year to sit in the Highly Compensated category. So if you make less than that, the only way you would be considered exempt from overtime is if you qualify under one of the other categories.
Now, why do I say this won’t impact California employers. Well, because our exempt threshold has been considerably higher than the Federal level, so even with the increase, it’s still below the state’s requirement. And it’s not just California, the New York rate is higher as well – so you should definitely double check to be clear on what your local laws mandate.
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And since we’re talking about California – mid year is a very popular time for cities in California to adjust their minimum wage rates – meaning the minimum amount you can pay a non-exempt worker. West Hollywood is increasing to $19.08 per hour; Berkeley and Emeryville are moving to $18.67 and $19.36 respectively, Los Angeles increases to $17.28, San Francisco is $18.67 and Malibu clocks in at $17.27.
And that’s just a few of the increases scheduled. So yes, you should definitely check in your local area.
Our friends in Chicago are getting 40 hours of paid leave in addition to 40 hours of paid sick leave. And they’re facing new restrictions around engaging Independent Contractors, meaning agreements are required and they must contain specific information to be valid.
And Florida has taken things a bit further. The state will now pre-empt local employment regulations. So things like minimum wages, workplace benefits or heat exposure standards – all that will be governed by the state.
New York is requiring that all employees get a copy of the Workers’ Bill of Rights, and you have to post ti where employees can easily see it.
That’s just the tip of the iceberg. Be sure to check in with your HR expert or labor attorney so you know you’re staying on top if all the changes.
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