With the 2021 California legislative year closed, it is now time to examine the new legislation that will affect California companies. We have summarized the key new legislation below, with relevant action items noted. Companies should work with experienced legal counsel to determine the best approach for their organization to ensure compliance with the latest California developments.
Wage and Hour/Classification
California Minimum Wage Increase
Effective Date: January 1, 2022. California’s minimum wage threshold increases to $14.00 per hour for employers with 25 or fewer employees and $15.00 per hour for employers with 26 or more employees. Exempt employees must be paid a salary of no less than two times the California minimum wage for full-time work (based on a 40-hour workweek). Labor Code Section 515. The salary threshold for computer software employees and licensed physicians and surgeons also increased.
Action item: Employers should review compensation amounts for both exempt and nonexempt employees.
Phase Out of Specially Licensed Employer Permission for Lower Wage Rates for Disabled Employees (SB 639)
Effective Date: January 1, 2022. The Industrial Welfare Commission will not issue any new special licenses permitting the employment of a mentally or physically disabled employee at a wage less than the minimum wage. Existing licenses may be renewed for those meeting requisite benchmarks but will be phased out by January 1, 2025.
Action item: Specially licensed...
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