Here is a practical list of the less than obvious things you need to do to make sure your California business is ready for the July 1st minimum wage increase to $9 per hour:

  • Make sure your payroll company is implementing the increase in all categories: base rate, overtime rate, meal premium, and split shift premium.
  • Confirm all exempt salaried employees earn at least $37,440 per year (twice the increased minimum wage).
  • Confirm anyone classified as exempt under the inside salesperson exemption (applicable only to Wage Orders 4 and 7), earns at least $13.51 for all hours worked (1.5x the increased minimum wage), and that more than half of the compensation represents commissions.
  • If you are changing any aspect of a commission plan to offset the minimum wage increase, make sure to put any such changes in writing with a sign off.
  • Consider providing a new Pay Notice. While not required if the rate increase shows on the next paystub, if all of your non-exempt employees don’t already have a signed Pay Notice on file, this is a good excuse to give them one.