As has become a pattern each year, there are a number of new laws enacted in 2013 that will undoubtedly affect California employers in 2014. The attached is a brief description of the major new legislation and regulations that employers should look out for. Please do not hesitate to contact any one
On September 25, 2013 Governor Brown signed Assembly Bill 10 into law. Under the new law the statutory minimum wage for California employees will increase from $8 per hour to $9 per hour as of July 1, 2014. Then, on January 1, 2016, the statutory minimum wage will increase to $10 per hour.
Employers should be planning ahead for the January 1, 2014 implementation of the “Employer Shared Responsibility” provisions of the Affordable Care Act. That is because the average number of workers a company employed during 2013 will determine whether an employer is a “large employer,” and must offer minimum levels of health insurance to its employees, for 2014. The Internal Revenue Service has now issued a 144-page proposed rule and added a “Q&A” section to the IRS website (found here) geared toward explaining how it will decide whether an employer is required to offer affordable health insurance and what levels of coverage must be provided.
On November 6, 2012, nearly sixty percent of San Jose’s residents voted to raise San Jose’s minimum wage to $10.00. In doing so, San Jose became the fifth city in the United States to institute a higher minimum wage than otherwise required, joining San Francisco, Washington, D.C., Albuquerque and Santa Fe.
California Labor Code sections 515.5 and 515.6 provide that certain computer software employees, as well as licensed physicians and surgeons, are exempt from state overtime requirements if they receive a minimum hourly, monthly, or yearly rate. Effective January 1, 2013, the following rates of pay are required for the employee to be exempt under California wage and hour law.