» Minimum Wage https://www.staffmarket.com/articles Tue, 23 Sep 2025 18:37:40 +0000 en-US hourly 1 http://wordpress.org/?v=3.9.2 Overtime Pay Rule Changes for Employers https://www.staffmarket.com/articles/overtime-pay-rule-changes-for-employers-1560 https://www.staffmarket.com/articles/overtime-pay-rule-changes-for-employers-1560#comments Tue, 30 Apr 2024 14:24:41 +0000 https://www.staffmarket.com/articles/?p=1560 Considerations for Business Owners and Managers.

New Overtime Regulations

On April 23, 2024, the U.S. Department of Labor announced a final rule to raise the salary threshold for certain overtime exemptions.

The final rule raises the minimum salary thresholds in two steps.

July 1, 2024:

  • The salary threshold will increase to $844 per week or $43,888 per year (a 23% increase over current levels).
  • The salary threshold for highly compensated employees will increase from $107,432 to $132,964 per year (a 23% increase over current levels).

January 1, 2025:

  • The salary threshold will increase to $1,128 per week or $58,656 per year (a 64.9% increase over current levels).
  • The salary threshold for highly compensated employees will increase to $151,164 per year (a 41% increase over current levels).

The rule is considered a “major rule” and cannot take effect for 60 days. During this time, the ruling could be challenged in court.

We recommend that you review your salaries and classification policies to determine what approach you would use to comply with the rule, if and when it becomes effective. Because the rule could be struck down, you may wish to plan for implementation but hold off on taking action for as long as possible.

Options to consider if someone’s salary is under the new thresholds:

  • Increase their salary to the new minimum; or
  • Change their status to hourly, non-exempt and pay overtime.
WHAT CAN A PEO DO FOR YOU?

 

When a business joins a PEO the PEO will identify employees who do not currently meet the new salary threshold requirements and, if applicable, provide you with the information needed to prepare your plan of action.Your PEO will continue to monitor the ruling and share updates as necessary. If the final rule is not overturned, contact your PEO HR support before your first payroll in July 2024.

 

 
Check out these Department of Labor (DOL) publications to learn more.

 

Press Release
FAQs
FLSA Exemption Fact Sheet
]]> https://www.staffmarket.com/articles/overtime-pay-rule-changes-for-employers-1560/feed 0 California Locality Minimum Wage Rules https://www.staffmarket.com/articles/ca-locality-min-wages-1496 https://www.staffmarket.com/articles/ca-locality-min-wages-1496#comments Wed, 24 Mar 2021 15:32:10 +0000 https://www.staffmarket.com/articles/?p=1496 Alameda (CA)
White-collar Exemption(The higher of federal, state or local must be paid to the employee) Follow state of California rates.
Minimum Wage Rate (The higher of federal, state or local must be paid to the employee) $15.00/hr effective 7/1/2020:
Minimum Cash Wage – Tipped(The higher of federal, state or local must be paid to the employee) Tip credits are prohibited by state law (Cal. Labor Code § 351).

Belmont (CA)

White-collar Exemption(The higher of federal, state or local must be paid to the employee) Follow state of California rates.
Minimum Wage Rate (The higher of federal, state or local must be paid to the employee) $15.90/hr. effective 1/1/2021
Minimum Cash Wage – Tipped(The higher of federal, state or local must be paid to the employee) Tip credits are prohibited by state law (Cal. Labor Code § 351).

Berkeley (CA)

White-collar Exemption(The higher of federal, state or local must be paid to the employee) Follow state of California rates.
Minimum Wage Rate (The higher of federal, state or local must be paid to the employee) $16.07/hr
Minimum Cash Wage – Tipped(The higher of federal, state or local must be paid to the employee) Tip credits are prohibited by state law (Cal. Labor Code § 351).

 

Cupertino (CA)

White-collar Exemption(The higher of federal, state or local must be paid to the employee) Follow state of California rates.
Minimum Wage Rate (The higher of federal, state or local must be paid to the employee) $15.65/hr
Minimum Cash Wage – Tipped(The higher of federal, state or local must be paid to the employee) Tip credits are prohibited by state law (Cal. Labor Code § 351).

 

Daly City (CA)

White-collar Exemption(The higher of federal, state or local must be paid to the employee) Follow state of California rates.
Minimum Wage Rate (The higher of federal, state or local must be paid to the employee) $15.00/hr
Minimum Cash Wage – Tipped(The higher of federal, state or local must be paid to the employee) Tip credits are prohibited by state law (Cal. Labor Code § 351).

 

El Cerrito (CA)

White-collar Exemption(The higher of federal, state or local must be paid to the employee) Follow state of California rates.
Minimum Wage Rate (The higher of federal, state or local must be paid to the employee) $15.61/hr
Minimum Cash Wage – Tipped(The higher of federal, state or local must be paid to the employee) Tip credits are prohibited by state law (Cal. Labor Code § 351).
Locality Threshold Employees must work at least two hours in the City in a particular week to be eligible to receive the minimum wage rate [El Cerrito Ordinance].

Emeryville (CA)

White-collar Exemption(The higher of federal, state or local must be paid to the employee) Follow state of California rates.
Minimum Wage Rate (The higher of federal, state or local must be paid to the employee) 16.84 /hr
Minimum Cash Wage – Tipped(The higher of federal, state or local must be paid to the employee) Tip credits are prohibited by state law (Cal. Labor Code § 351).
Locality Threshold Emeryville Ordiance (EMC 5-37) outlines annual minimum wage increases. Please be advised: As of May 2019, city leaders voted in favor of a “pause” ordinance on the scheduled minimum wage increase. The pause ordinance will have a second reading before taking effect. Be on alert for the results of the second reading.

 

Fremont (CA)

White-collar Exemption(The higher of federal, state or local must be paid to the employee) Follow state of California rates.
Minimum Wage Rate (The higher of federal, state or local must be paid to the employee) 26 or more employees: $15.00/hr.

25 or fewer employees: $13.50/hr.
Increasing to $15.00/hr effective 07/01/21.
Minimum Cash Wage – Tipped(The higher of federal, state or local must be paid to the employee) Tip credits are prohibited by state law (Cal. Labor Code § 351).

Half Moon Bay (CA)

White-collar Exemption(The higher of federal, state or local must be paid to the employee) Follow state of California rates.
Minimum Wage Rate (The higher of federal, state or local must be paid to the employee) $15.00/hr
Minimum Cash Wage – Tipped(The higher of federal, state or local must be paid to the employee) Tip credits are prohibited by state law (Cal. Labor Code § 351).

Hayward (CA)

White-collar Exemption(The higher of federal, state or local must be paid to the employee) Follow state of California rates.
Minimum Wage Rate (The higher of federal, state or local must be paid to the employee) 26 or more employees: $15.00/hr.

25 or fewer employees: $14.00/hr.
Minimum Cash Wage – Tipped(The higher of federal, state or local must be paid to the employee) Tip credits are prohibited by state law (Cal. Labor Code § 351).

Long Beach (CA)

White-collar Exemption(The higher of federal, state or local must be paid to the employee) Follow state of California rates.
Minimum Wage Rate (The higher of federal, state or local must be paid to the employee) Hotel workers: $15.47/hr.
Concessionaire workers: $15.30/hr.
Minimum Cash Wage – Tipped(The higher of federal, state or local must be paid to the employee) Tip credits are prohibited by state law (Cal. Labor Code § 351).

Los Altos (CA)

White-collar Exemption(The higher of federal, state or local must be paid to the employee) Follow state of California rates.
Minimum Wage Rate (The higher of federal, state or local must be paid to the employee) $15.65/hr.
Minimum Cash Wage – Tipped(The higher of federal, state or local must be paid to the employee) Tip credits are prohibited by state law (Cal. Labor Code § 351).

 

Los Angeles (CA): city and unincorporated cities within Los Angeles County

White-collar Exemption(The higher of federal, state or local must be paid to the employee) Follow state of California rates.
Minimum Wage Rate (The higher of federal, state or local must be paid to the employee) Employers and nonprofits with 26 or more employees: $15.00/hr.
Employers and nonprofits with 25 or fewer employee: $14.25/hr. Increasing to $15.00/hr effective 07/01/2021
Hotel Workers: $17.13
Minimum Cash Wage – Tipped(The higher of federal, state or local must be paid to the employee) Tip credits are prohibited by state law (Cal. Labor Code § 351).
Locality Threshold Minimum wage rate for employers and nonprofits with more than 25 employees, minimum wage rate for employers and nonprofits with 25 or fewer employees and a minimum wage rate for Hotel employers with at least 150 rooms [LA City Clerk Connect website, Council File: 14-1371; LA Citywide Hotel Worker Minimum Wage Ordinance].

 

Malibu (CA)

White-collar Exemption(The higher of federal, state or local must be paid to the employee) Follow state of California rates.
Minimum Wage Rate (The higher of federal, state or local must be paid to the employee) Employers with 26 or more employees:$15.00/hr.Employers with 25 or fewer employees:$14.25/hr. Increasing to $15.00/hr effective 07/01/2021
Minimum Cash Wage – Tipped(The higher of federal, state or local must be paid to the employee) Tip credits are prohibited by state law (Cal. Labor Code § 351).
Locality Threshold An employee is defined as an individual who performs at least two hours of work within the city for an employer in a particular week and who is entitled to be paid the minimum wage rate under California state law.

Milpitas (CA)

White-collar Exemption(The higher of federal, state or local must be paid to the employee) Follow state of California rates.
Minimum Wage Rate (The higher of federal, state or local must be paid to the employee) $15.40/hr.
Minimum Cash Wage – Tipped(The higher of federal, state or local must be paid to the employee) Tip credits are prohibited by state law (Cal. Labor Code § 351).

 

Mountain View (CA)

White-collar Exemption(The higher of federal, state or local must be paid to the employee) Follow state of California rates.
Minimum Wage Rate (The higher of federal, state or local must be paid to the employee) $16.30/hr
Minimum Cash Wage – Tipped(The higher of federal, state or local must be paid to the employee) Tip credits are prohibited by state law (Cal. Labor Code § 351).

 

Oakland (CA)

White-collar Exemption(The higher of federal, state or local must be paid to the employee) Follow state of California rates.
Minimum Wage Rate (The higher of federal, state or local must be paid to the employee) $14.36/hr.
$20.50/hr for hotel workers without health benefits.
$15.27 for hotel workers with health benefits.
Minimum Cash Wage – Tipped(The higher of federal, state or local must be paid to the employee) Tip credits are prohibited by state law (Cal. Labor Code § 351).

 

Palo Alto (CA)

White-collar Exemption(The higher of federal, state or local must be paid to the employee) Follow state of California rates.
Minimum Wage Rate (The higher of federal, state or local must be paid to the employee) $15.65/hr
Minimum Cash Wage – Tipped(The higher of federal, state or local must be paid to the employee) Tip credits are prohibited by state law (Cal. Labor Code § 351).

 

Pasadena (CA)

White-collar Exemption(The higher of federal, state or local must be paid to the employee) Follow state of California rates.
Minimum Wage Rate (The higher of federal, state or local must be paid to the employee) Employers with 26 or more employees:$15.00/hr.Employers with 25 or fewer employees: $14.25/hr. Increasing to $15.00/hr effective 07/01/2021
Minimum Cash Wage – Tipped(The higher of federal, state or local must be paid to the employee) Tip credits are prohibited by state law (Cal. Labor Code § 351).

Petaluma (CA)

White-collar Exemption(The higher of federal, state or local must be paid to the employee) Follow state of California rates.
Minimum Wage Rate (The higher of federal, state or local must be paid to the employee) $15.20/hr
Minimum Cash Wage – Tipped(The higher of federal, state or local must be paid to the employee) Tip credits are prohibited by state law (Cal. Labor Code § 351).

Redwood City (CA)

White-collar Exemption(The higher of federal, state or local must be paid to the employee) Follow state of California rates.
Minimum Wage Rate (The higher of federal, state or local must be paid to the employee) $15.62/hr
Minimum Cash Wage – Tipped(The higher of federal, state or local must be paid to the employee) Tip credits are prohibited by state law (Cal. Labor Code § 351).

Richmond (CA)

White-collar Exemption(The higher of federal, state or local must be paid to the employee) Follow state of California rates.
Minimum Wage Rate (The higher of federal, state or local must be paid to the employee) Without health benefits: $13.71/hr
With health benefits: $15.21/hr. effective 1/1/2019
Minimum Cash Wage – Tipped(The higher of federal, state or local must be paid to the employee) Tip credits are prohibited by state law (Cal. Labor Code § 351).
Locality Threshold

 

Sacramento (CA)

White-collar Exemption(The higher of federal, state or local must be paid to the employee) Follow state of California rates.
Minimum Wage Rate (The higher of federal, state or local must be paid to the employee) Employers with more than 100 employees: $11.75/hr. effective 1/1/20191/1/2020: $12.50/hr.Employers with 100 or fewer employees: $11.00/hr. effective 1/1/20191/1/2020: $11.75/hr.1/1/2021: $12.50/hr.
Minimum Cash Wage – Tipped(The higher of federal, state or local must be paid to the employee) Tip credits are prohibited by state law (Cal. Labor Code § 351).

San Carlos (CA)

White-collar Exemption(The higher of federal, state or local must be paid to the employee) Follow state of California rates.
Minimum Wage Rate (The higher of federal, state or local must be paid to the employee) $15.24/hr
Minimum Cash Wage – Tipped(The higher of federal, state or local must be paid to the employee) Tip credits are prohibited by state law (Cal. Labor Code § 351).

San Diego (CA)

White-collar Exemption(The higher of federal, state or local must be paid to the employee) Follow state of California rates.
Minimum Wage Rate (The higher of federal, state or local must be paid to the employee) $14.00/hr
Minimum Cash Wage – Tipped(The higher of federal, state or local must be paid to the employee) Tip credits are prohibited by state law (Cal. Labor Code § 351).

 

San Francisco – City and County (CA)

White-collar Exemption(The higher of federal, state or local must be paid to the employee) Follow state of California rates.
Minimum Wage Rate (The higher of federal, state or local must be paid to the employee) $16.07/hr
$14.22 for government supported employees.
Minimum Cash Wage – Tipped(The higher of federal, state or local must be paid to the employee) Tip credits are prohibited by state law (Cal. Labor Code § 351).

San Jose (CA)

White-collar Exemption(The higher of federal, state or local must be paid to the employee) Follow state of California rates.
Minimum Wage Rate (The higher of federal, state or local must be paid to the employee) $15.45/hr
Minimum Cash Wage – Tipped(The higher of federal, state or local must be paid to the employee) Tip credits are prohibited by state law (Cal. Labor Code § 351).

San Leandro (CA)

White-collar Exemption(The higher of federal, state or local must be paid to the employee) Follow state of California rates.
Minimum Wage Rate (The higher of federal, state or local must be paid to the employee) $15.00/hr
Minimum Cash Wage – Tipped(The higher of federal, state or local must be paid to the employee) Tip credits are prohibited by state law (Cal. Labor Code § 351).

 

San Mateo (CA)

White-collar Exemption(The higher of federal, state or local must be paid to the employee) Follow state of California rates.
Minimum Wage Rate (The higher of federal, state or local must be paid to the employee) Generally: $15.62/hr
Minimum Cash Wage – Tipped(The higher of federal, state or local must be paid to the employee) Tip credits are prohibited by state law (Cal. Labor Code § 351).
Locality Threshold Minimum wage rate for employers, other than non-profit corporations. Minimum wage rate for non-profit corporations. An employee is eligible for the minimum wage rate if he or she performs at least two hours of work within the city for an employer in a particular week, and the individual is entitled to be paid the minimum wage rate under California state law. The minimum wage ordinance applies to tipped employees. Employers may not use a tip credit to satisfy minimum wage requirements [San Mateo Ordinance, Chapter 5.92].

 

Santa Clara (CA)

White-collar Exemption(The higher of federal, state or local must be paid to the employee) Follow state of California rates.
Minimum Wage Rate (The higher of federal, state or local must be paid to the employee) $15.65/hr
Minimum Cash Wage – Tipped(The higher of federal, state or local must be paid to the employee) Tip credits are prohibited by state law (Cal. Labor Code § 351).
Locality Threshold Employees who work at least 2 hours per week in Santa Clara [Santa Clara Ordinance 1943].

Santa Monica (CA)

White-collar Exemption(The higher of federal, state or local must be paid to the employee) Follow state of California rates.
Minimum Wage Rate (The higher of federal, state or local must be paid to the employee) Employers with 26 or more employees:$15.00/hr
Employers with 25 or fewer employees:$14.25/hr. Increasing to $15.00 effective 07/01/21.Hotel workers: $17.37/hr.
Minimum Cash Wage – Tipped(The higher of federal, state or local must be paid to the employee) Tip credits are prohibited by state law (Cal. Labor Code § 351).
Locality Threshold Minimum wage rate for employers with more than 25 employees.Minimum wage rate for employers with 25 or fewer employees. Minimum wage rate for hotel workers. [Santa Monica Minimum Wage and Paid Sick Leave Ordinance, 1/26/16].

Santa Rosa (CA)

White-collar Exemption(The higher of federal, state or local must be paid to the employee) Follow state of California rates.
Minimum Wage Rate (The higher of federal, state or local must be paid to the employee) $15.20/hr
Minimum Cash Wage – Tipped(The higher of federal, state or local must be paid to the employee) Tip credits are prohibited by state law (Cal. Labor Code § 351).
Locality Threshold

Sonoma (CA)

White-collar Exemption(The higher of federal, state or local must be paid to the employee) Follow state of California rates.
Minimum Wage Rate (The higher of federal, state or local must be paid to the employee) Employers with 26 or more employees:$15.00/hr
Employers with 25 or fewer employees:$14.00/hr
Minimum Cash Wage – Tipped(The higher of federal, state or local must be paid to the employee) Tip credits are prohibited by state law (Cal. Labor Code § 351).
Locality Threshold

Sunnyvale (CA)

White-collar Exemption(The higher of federal, state or local must be paid to the employee) Follow state of California rates.
Minimum Wage Rate (The higher of federal, state or local must be paid to the employee) $16.30/hr. effective 1/1/2019
Minimum Cash Wage – Tipped(The higher of federal, state or local must be paid to the employee) Tip credits are prohibited by state law (Cal. Labor Code § 351).
]]> https://www.staffmarket.com/articles/ca-locality-min-wages-1496/feed 0 City Based Minimum Wages Expanding https://www.staffmarket.com/articles/city-based-minimum-wages-expanding-885 https://www.staffmarket.com/articles/city-based-minimum-wages-expanding-885#comments Fri, 22 May 2015 14:39:41 +0000 https://www.staffmarket.com/articles/?p=885 On May 19, 2015, the Los Angeles, California city council voted to become the latest city to establish a minimum wage, increasing from $9 to $15 per hour.  This is a 76% increase by to be phased in by 2020. In addition, Los Angeles County is considering a similar measure that would affect employers in unincorporated areas of Los Angeles.

What do Business Owners Think?

According to an article in the New York Times
Opponents of higher minimum wages, including small-business owners and the Los Angeles Chamber of Commerce, say the increase approved Tuesday could turn Los Angeles into a “wage island,” pushing businesses to nearby places where they can pay employees less.

“They are asking businesses to foot the bill on a social experiment that they would never do on their own employees,” said Stuart Waldman, the president of the Valley Industry and Commerce Association, a trade group that represents companies and other organizations in Southern California. “A lot of businesses aren’t going to make it,” he added. “It’s great that this is an increase for some employees, but the sad truth is that a lot of employees are going to lose their jobs.”

The trend towards local (city and county) based minimum based wages has been growing.

City-minimum-wages

Where Does It End?

According to citymayors.com as of May 2015, there are 19,429 municipal governments in the United States and 3,143 counties.  In the future each city and county government could declare that it is empowered to set wage bases for every employer in their area. Employers across the nation will be faced with a constantly shifting set of minimum wage rules set for each area in the country.

Joining Forces with a Professional Employer Organization

Since PEOs provide a payroll service as a core part of their offering, Professional Employer Organizations with large and diverse geographic coverage areas will be tracking and implementing compliance policy for their small and medium sized business clients.  This is yet another real life example of when more rules and regulations are piled on businesses, the more valuable having a PEO partnership becomes.

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