Question: As business is increasing, I am starting to hire additional employees. I now have over 20 part-time and full-time employees. I am aware that the minimum wage in California has increased. What is the minimum wage I should be paying my employees this year?
Answer: On Jan. 1, the state minimum wage increased, and the rate depends on the number of employees you have. If you have 25 or fewer employees, then the minimum wage is $14.00 per hour. If you have 26 or more employees, the minimum wage is $15.00 per hour. If at any during the year you have more than 25 employees, then you will have to increase the minimum wage paid to your non-exempt employees to $15.00 an hour. Similarly, if the workforce decreases below 26 employees, then the minimum wage rate paid to the non-exempt employees can be lowered to $14.00 an hour because the workforce has fallen below the 26 employee threshold. However, before paying a different minimum wage rate based on a change in your workforce size, you must notify the affected employees in writing and in advance as required by the California Labor Code. The California Department of Industrial Relations (“DIR”) publishes a notice that complies with the requirements of Labor Code section 2810.5. This “Notice to Employee” can be downloaded at https://www.dir.ca.gov/dlse/LC_2810.5_Notice.pdf.
Also, on Jan.1, the minimum salary for exempt employees also increased, which means if you employ exempt employees, you must pay them at least two times...
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