As the new year begins we are reevaluating the ways in which we communicate compliance related information and updates to help you meet your HR compliance obligations.
Last month you received a communication from us announcing a number of minimum wage updates. At the same time we have reprogrammed our client facing minimum wage warnings and errors (those that you see when you are processing payroll) to trigger based on the highest possible state or federal minimum wage rate (or minimum salary for most exempt employees) rate vs. the lowest state rate.
Why is this Important?
There are a number of state and local laws for which the minimum wage and/or minimum exempt employee salary that must be paid to employees is dependent on employer size, industry, employee exemption type, location within the state etc. In addition, many local laws require employers to pay a rate that is higher than federal and state law. For example in CA the state minimum wage is either $11.00 (for employers employing 26 or more employees) or $10.50 (for employers employing 25 or fewer employees). The salary that must be paid to most (but not all) CA exempt salaried employees is based on a multiple of two times the applicable minimum wage rate for 40 hours (e.g. $880.00 or $840.00). Local laws in CA require a higher minimum wage.
The system errors and warnings referenced above can only display a single rate. Therefore because these warnings and errors are directional, you should confirm if the warning or error is accurate as it does not take into account employer size, location or benefits offered to employees or an employee’s exemption type in the case of salaried exempt employees (e.g. there are some exemptions that do not require payment on a salary basis).
The warnings and errors above will be deactivated in the near future given these limitations.
Determining the Rate that Applies to Employees - Announcing Littler GPS
We recognize that you have a need to access compliance related information on demand and on your schedule and are pleased to announce that we have partnered with Compliance HR and Littler Mendelson P.C. to provide clients access to Littler GPS. Littler GPS is powered by Littler Mendelson, P.C. and provides a content rich library of federal and multi-state surveys providing in-depth information on over 70 employment topics including but not limited to information on federal state and local minimum wage rate information. The applicable surveys for this information are:
- Minimum Wage and Overtime Requirements (for federal and state minimum wage requirements (excluding tipped employees)
- Minimum Wage at the Local Level and Tipped Employees (for local laws)
- Minimum Cash Wage, Tip Credit & Tip Pooling (for state and federal requirements for tipped employees)
- White Collar Employee Pay Requirements (Chart) (for minimum salary requirements for most exempt employees)
Information on how to access Littler GPS can be found on your Forms Library in the state appendix section titled “Littler GPS Quick Start Guide.”
As always please contact your Human Resources Business Partner or your Payroll Service Representative if you have any questions.