Executive Summary

Coverage:  Employers with employees working in California.

Effective Date:  Beginning July 1, 2014.

Overview:  The law increases the state’s hourly minimum wage rate from $8.00 an hour up to $10.00 an hour by January 1, 2016. The rate increase takes effect in two stages: a $1.00 increase on July 1, 2014 to $9.00 an hour, and another $1.00 increase on January 1, 2016 to $10.00 an hour. The last time California increased its minimum wage was on January 1, 2007.

Action Required:  Consult your Human Resource Business Partner as needed.

We have revised the Paid Family Leave Benefits provisions in the California Employee Handbook to reflect that, as of July 1, 2014, California employees may be eligible to receive Paid Family Leave benefits when taking time off work to care for a seriously ill parent-in-law, grandparent, grandchild or sibling, in addition to a child, spouse, parent or registered domestic partner. 

Executive Summary

Coverage: Impacts all employers applying the commissioned employee exemption. 

Effective Date:  Currently in effect.

Overview:   The California Supreme Court has narrowed application of the “commission exemption” from overtime. The case is Peabody v. Time Warner Cable, Inc.

Action Required:  Review current pay practices for exempt commissioned employees to determine compliance with the ruling and contact your Human Resource Business Partner as needed for assistance.

We have made several important policy updates to our model California handbook including the following:

• Non-Disclosure / Confidential Company Information
• Publicity, Statements to the Media
• Use of Communication and Computer Systems
• Use of Social Media
• Workplace Conduct
• Solicitation and Distribution
• San Francisco Family Friendly Workplace
• Working Hours and Schedule (includes important meal and rest period requirements under CA law)
• Victims of Domestic Violence Sexual Assault or Stalking
• Pregnancy Disability Leave
• Travel Time for Nonexempt Employees

Until recently, California had a state insurance law that prohibited insurance companies and/or employers from imposing a waiting period in excess of 60 days.

With the enactment of the Healthy Workplaces, Healthy Families Act of 2014 (AB1522), California has become the second state in the nation, after Connecticut, to mandate employers provide their employees, including part-time and temporary workers, paid sick leave.