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With the start of a new year, many states have passed legislation to increase the minimum wage for workers in that state.

For our Sequoia One clients, the Sequoia One team will be proactively reviewing the below items in advance of the changes to ensure your company remains in compliance:

  • Order all required posters for distribution to your office location(s)
  • Review current pay practices and advise if any employee falls below the new minimum wage
  • Confirm current exempt-level employees meet minimum salary requirements for existing classifications
  • Payroll alerts for any new hires that fall below the new minimum wage

While the focus of this post will be on the California law, we have also listed other states that will be increasing their minimum wages at the bottom with links to respective resources.

Effective January 1st, 2016, the State of California will be raising the minimum wage from $9.00 per hour to $10.00 per hour. This change impacts multiple areas including:

  • Overtime Rate
    • Changing from $13.50 per hour to $15 per hour
  • Double Time Rate
    • Changing from $18 per hour to $20 per hour
  • Exempt/Non-Exempt Status
    • Minimum salary to qualify for the “white collar” exemption from overtime changes from $3,120 per month ($37,440 annually) to $3,466.67 per month ($41,600 annually)
  • Notice Requirements
    • New labor law posters are required reflecting the updated minimum wage

Please keep in mind that depending on where your company is located, there may be additional local minimum wage ordinances in effect.

The Sequoia One team is available to answer any questions regarding any of the above information at PHONE EMAIL.

Additional States increasing Minimum Wages Are:
Alaska, Arkansas, Colorado*, Connecticut, District of Columbia (July 2016), Hawaii, Maryland (July 2016), Massachusetts, Michigan, Minnesota (August 2016), Nebraska, New York, Rhode Island, South Dakota*, Vermont, West Virginia

*Represents states who change Minimum Wage annually depending on an index.

Monisa Croxton – Monisa is Sequoia One’s HR Service Manager, and with 16 years of experience in the industry, she is a font of wisdom on all issues related to Human Resources.