HR Management & Compliance

Employment Law Tip: Wage and Hour Tips for the New Year

Want to make sure your business has a happy wage and hour new year? Do a quick review to check that your organization is complying with California wage and hour changes for 2008.

Make sure that all nonexempt employees are receiving, at least, the new minimum wage of $8.00 per hour. And check to see that employees who qualify for overtime exemption are receiving a minimum salary of $2,773.33 per month (based on the requirement that they earn a salary of at least two times the minimum wage for full-time employment).

The HR Management & Compliance Report: How To Comply with California Wage & Hour Law, explains everything you need to know to stay in compliance with the state’s complex and ever-changing rules, laws, and regulations in this area. Coverage on bonuses, meal and rest breaks, overtime, alternative workweeks, final paychecks, and more.

Also, the minimum wage rate that certain computer software employees must earn to qualify as exempt from overtime has been lowered to $36 per hour as of the new year (down from $49.77 in 2007). Thus, some computer software employees who previously didn’t earn enough to make them exempt may now be exempt. Note that you can pay these employees an annual salary of $74,880, provided that their weekly pay equates to $36 per hour for each hour worked. (There are also duties requirements that must be satisfied for this exemption. For more on this topic, download our exclusive Employer Guide, Who’s Entitled to Overtime: How to Avoid Mistakes When Classifying California Employees.

Finally, with respect to expense reimbursements, keep in mind that the IRS mileage reimbursement rate has been increased to 50.5 cents per mile for 2008. Using this rate, although not mandatory, will satisfy your obligation to indemnify employees under California Labor Code Section 2802 for use of the employee’s personal automobile for business-related travel, absent evidence that the employee’s actual expenses were higher.

Additional Resources:
Wage and Hour: Minimum Wage Going Up in California; What Employers Must Know

Wage and Hour: California High Court Backs Employer on Expense Reimbursement


Leave a Reply

Your email address will not be published. Required fields are marked *