Q. WHAT is the new minimum wage?
A. Effective January 1, 2016, the minimum wage in California will be $10.00 per hour. Most employees in California are entitled to be paid at least the minimum wage. This new rate also affects overtime pay. Employees who are paid minimum wage and work overtime must be paid $15 per hour for time-and-a-half, or $20 per hour for double-time.
Q. What is the difference between the state and federal minimum wage?
A. The current federal minimum wage rate is $7.25 per hour. Employers who are subject to both the federal and state minimum wage laws must follow the law that is more beneficial to the employee. Since California’s current minimum wage rate is higher than the federal minimum wage, the state minimum wage rate must be paid unless an exemption applies.
Q. What kinds of employees are affected by minimum wage increase?
A. Aside from hourly (or “non-exempt”) employees, the increase in minimum wage also boosts the pay of most employees legally “exempt” from the overtime rules. True exempt employees (Executive, Administrative, or Professional employees) must be paid a salary rate that is at least twice the state minimum wage for full-time monthly employment. The minimum monthly salary for most exempt employees is now increased to $3,466.67 per month (or $41,600 annually).
Employees who are paid on a commission basis and classified under the commission sales exemption must earn 1½ times the minimum wage for all hours worked to qualify for the exemption. These employees will need to earn $15 per hour to continue to qualify for the exemption.
Q. May an employee agree to work for less than the minimum wage?
A. No. The minimum wage is an obligation of the employer and cannot be waived by any agreement, including collective bargaining agreements. Laws enacted for the protection of employees may not be avoided by agreement between the employer and employee.
Q. Is the minimum wage the same for both adult and minor employees?
A. Yes. The law does not make a distinction between adults and minors in the payment of the minimum wage.
Q. Can a restaurant use the tips received by a waiter/waitress as a credit toward its obligation to pay the minimum wage?
A. No. An employer may not use an employee’s tips as a credit toward its obligation to pay the minimum wage.
Q. What can I do if my employer doesn’t pay me at least the minimum wage?
A. You can file a wage claim with the Labor Commissioner’s Office, or a lawsuit in state or federal court against your employer to recover the lost wages. Additionally, if you no longer work for this employer, you can make a claim for waiting time penalty. If your claim is filed in court, you may also recover the minimum wage violation penalty ($100 for each underpaid employee for first pay period of violation and $250 per employee for each subsequent pay periods) interest, costs, and attorneys fees.
Q. What can I do if my employer retaliates against me because I complained about not being paid the minimum wage?
A. If your employer retaliates against you in any manner (for example, by firing, suspending, demoting or assigning to a less advantageous position) because you complained about not being paid the minimum wage, or because you filed a claim or hired an attorney to file a claim for minimum wage violations, you may file a claim for retaliation with the Labor Commissioner’s Office or you can file a lawsuit in state or federal court against your employer. Consult with an experienced lawyer if you believe your rights are violated in the workplace.
Q: Does the new minimum wage affect “live-in” employees?
A: Yes, it does. We will discuss this issue next week.
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The Law Offices of C. Joe Sayas, Jr. welcomes inquiries about this topic. All inquiries are confidential and at no-cost. You can contact the office at (818) 291-0088 or visit www.joesayaslaw.com.
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C. Joe Sayas, Jr., Esq. is an experienced trial attorney who has successfully recovered wages and other monetary relief for thousands of employees and consumers. He is named Top Labor & Employment Attorney in California by the Daily Journal, consistently selected as Super Lawyer by the Los Angeles Magazine, and is a member of the Million Dollar-Advocates Forum.