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How will California’s 2018 laws affect you?

January 5th, 2018
California 2018 Minimum Wage

California employers must comply with the state’s minimum salary requirement for Administrative Exempt (salaried) employees.  In California, Administrative Exempt employees must earn a monthly salary of no less than two times the state minimum wage for full-time employment.

Administrative Exempt Employee Salary Requirement
(Employers with 26 or more employees)

This does not apply to Executive Exempt, Professional Exempt, Computer Exempt or Outside Sales Exempt employees.

  • As of January 1, 2018:  CA minimum wage = $11.00 per hour 
    San Diego’s minimum wage = $11.50 per hour
  • 40 hours per week:  Full-time employee works 40 hours in a week
  • 52 weeks per year:  Full-time employee works 52 weeks in a year
  • 2,080 hours per year:  Full-time employee works 2,080 hours in a year (40 hours x 52 weeks = 2,080)
  • $45,760 per year minimum:  Minimum annual salary for a full-time, administrative exempt employee ($11.00 x 2= $22.00 x 2,080 = $45,760)
  • $3,813.33 per month minimum:  Minimum monthly salary for a full-time, administrative exempt employee ($45,760 ÷ 12= $3,813.33)

Administrative Exempt Employee Salary Requirement
(Employers with 25 or less employees)

This does not apply to Executive Exempt, Professional Exempt, Computer Exempt or Outside Sales Exempt employees.

  • As of January 1, 2018:  CA minimum wage = $10.50 per hour 
    San Diego’s minimum wage = $11.00 per hour
  • 40 hours per week:  Full-time employee works 40 hours in a week
  • 52 weeks per year:  Full-time employee works 52 weeks in a year
  • 2,080 hours per year:  Full-time employee works 2,080 hours in a year (40 hours x 52 weeks = 2,080)
  • $43,680 per year minimum:  Minimum annual salary for a full-time, administrative exempt employee ($10.50 x 2= $21.00 x 2,080 = $43,680)
  • $3,640 per month minimum:  Minimum monthly salary for a full-time, administrative exempt employee ($43,680 ÷ 12= $3,640)
Local Minimum Wage

Employers must comply with both state and federal minimum wage laws. Whichever law gives employees a higher wage rate governs.  But, to make it even more complicated, a local entity (a city or a county) may also enact a minimum wage rate that is higher than the state or federal minimum. Therefore, employers must know the federal, state, and local minimum wage rates—and choose whichever one gives the employees more.

Example
The City of San Diego’s minimum wage is $11.50, and will remain so until January 1, 2019. Since San Diego has a higher wage rate than California’s rate of $10.50  (or $11.00, depending on the amount of employees; see above) and the federal rate of $7.25, San Diego employers must pay their hourly employees a minimum wage of $11.50 through January 1, 2019.

Note: The exempt minimum salary requirement is based on the current state minimum wage, not any applicable local minimum wage.

Other New 2018 Laws Affecting California Employers

These 6 insurance jobs are most likely to suffer from the oncoming talent gap

May 2nd, 2016
jobmarketibamag.com

Everyone knows millennials aren’t interested in insurance – but do you know what’s at stake if that disinterest continues?  Click here to read the article.

 


Higher Minimum Wage Wins with Big Support in San Francisco and Oakland

November 7th, 2014

San Francisco residents voted on November 3rd to slowly increase the hourly minimum wage to $15.  Oakland will increase the minimum wage to $12.25 starting next March.  To read the full story, CLICK HERE.

minimum-wage

Take the Agency Salary Survey

January 9th, 2014

redcheckThe Insurance Journal is inviting the ENTIRE AGENCY to participate in their exclusive Independent Insurance Agency Salary Survey set for publication on February 24th.

The survey is confidential and doesn’t take more than 10 minutes.  Just go to http://www.insurancejournal.com/agency-salary-survey/ and answer the listed questions to help provide valuable information on agency compensation trends.

Multiple states face FUTA credit reductions for 2013

October 11th, 2013

Multiple states face FUTA credit reductions for 2013UI

CCH — 10/10/13

Based on the latest data from the U.S. Treasury and the Department of Labor (DOL), employers across the country should brace themselves for higher than normal federal unemployment tax (FUTA) liabilities for 2013. A total of 17 states are slated to be FUTA credit reduction states for 2013 unless they pay off their outstanding federal unemployment insurance loans by November 10. This situation means that employers in those jurisdictions will not be able to claim the maximum amount of credit for state unemployment taxes when they file their federal unemployment tax returns for 2013 (due in 2014).  To read on, CLICK HERE.

10 Careers Boosted by Obamacare

August 6th, 2013
marketwatch.com, Jen Wieczner

Jobs-Growth

Hiring is booming in these fields as a result of health reform.

08/06/13 – Adversaries of the Affordable Care Act feel it will reduce or even eliminate jobs, but hiring analysts and recruiters believe it will create jobs specifically in the areas of nursing and physician assistants, payroll, computer programming, lawyers, medical billing, consulting, customer service, occupational therapy, human resources and wellness and fitness.  CLICK HERE to read the complete article.

Permanent Hiring in IT Expected to Remain Steady in the Back Half of 2013…

July 24th, 2013

careerbuilder.com

July 18, 2013 – IT workers can expect a stable employment environment over the next six months along with an upswing in temporary jobs. In CareerBuilder and Sologig.com’s latest national survey, employers indicated that full-time…CLICK HERE to read the complete article.

employment-trends

Unemployment Insurance: Quitting/Firing, Not Automatic Disqualification

July 12th, 2013

UnemploymentUnemployment Insurance: Quitting/Firing, Not Automatic Disqualification

Why do my employees always win their unemployment insurance claims against me, even when they were the ones who quit or when I fire them for poor performance that is clearly documented?

CLICK HERE for to read the rest of this article by Ellen Savage, HR Adviser. Labor Law Corner, CA Chamber of Commerce

USCIS Revises Employment Eligibility Verification Form I-9

March 11th, 2013

important03/08/13 – WASHINGTON – U.S. Citizenship and Immigration Services (USCIS) today published a revised Employment Eligibility Verification Form I-9 for use. All employers are required to complete a Form I-9 for each employee hired in the United States.
 
Improvements to Form I-9 include new fields, reformatting to reduce errors, and clearer instructions to both employees and employers. The Department of Homeland Security has published a Notice in the Federal Register informing employers of the new Form I-9. 

Effective 03/08/13:

  • Employers should begin using the newly revised Form I-9 (Rev. 03/08/13)N for all new hires and reverifications.
  • Employers may continue to use previously accepted revisions (Rev.02/02/09)N and (Rev. 08/07/09) Y until May 7, 2013.
  • After May 7, 2013, employers must only use Form I-9 (Rev. 03/08/13)N.

To read the rest of this notice from the U.S. Citizenship and Immigration Services, CLICK HERE.

To access the new, user friendly Form I-9, go to http://www.uscis.gov/wp-content/uploads/form/i-9.pdf.

IRS Issues Proposed Rules on Employer ‘Shared Responsibility’ Tax Under Affordable Care Act

January 25th, 2013

IRS Issues Proposed Rules on Employer ‘Shared Responsibility’ Tax Under Affordable Care Act

(January 15, 2013) Proposed rules providing guidance on the employer “shared responsibility” excise tax under the federal health care reform law have been issued by the U.S. Treasury Department and the Internal Revenue Service.

In addition, the IRS has published new Q&As providing guidance about the tax…CLICK HERE to read the entire article.

tax

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