Sacramento, Calif., (January 4, 2018) – California’s minimum wage increased for all employers on January 1, 2018. For “small” employers (25 or fewer employees), the minimum wage is $10.50/hr. as of January 1; for “large” employers of 26 or more employees, the minimum wage is $11/hour as of January 1.
In industries like agriculture where employment fluctuates widely on a seasonal basis, an employer’s headcount can vary between 25 or fewer or 26 or more throughout the year. The Labor Commissioner has issued guidance as to how it views the applicability of the $10.50/hr. minimum wage v. the $11/hr. minimum wage:
- The “small” employer implementation schedule applies in any pay period in which an employer at no time had more than 25 employees.
- The faster, “large” employer implementation schedule applies in any pay period in which an employer had 26 or more employees at any time.
- You may switch back and forth from pay period to pay period, but this entails administrative inconvenience, and perhaps disgruntled employees, claims of Labor Code violations, and lawsuit exposure.
For questions concerning the minimum wage, contact FELS at 800-753-9073 or info@fels.net.
Source: Farm Employers Labor Service, FELS eNews, January 2, 2018