This month we remind you of upcoming changes and deadlines coming at the end of this month related to California employment law and discuss a recent California decision impacting meal and rest period violation and premium pay reporting requirements.

Increase in City of Los Angeles and Unincorporated County of Los Angeles Minimum Wage Requirements Effective July 1, 2022

Effective July 1, 2022, minimum wage for employees working within the City of Los Angeles will increase from $15.00 per hour to $16.04 per hour. The City of Los Angeles minimum wage rate applies to any employees who perform at least two hours per week within the geographic boundary of Los Angeles. Keep in mind this would apply to drivers or employees who work remotely from their home located in the City of Los Angeles, regardless of where the employer business is located.  For employees working in unincorporated areas of Los Angeles County, minimum wage will increase to $15.96 per hour.

The California minimum wage remains the same at $14.00 per hour for employers with 25 or fewer employees and $15.00 per hour for employers with 26 or more employees. 

Important Reminder Regarding June 30 2022 to Register with CalSavers

Employers with 5 or more employees must register with the California CalSavers program by June 30, 2022. Employers who have an alternative workers retirement plan such as a 401k plan should also register with CalSavers as exempt. Click here for more information about Calsavers requirements as set forth in our past blog post here.

California Supreme Court Holds That Premium Pay for Rest and Period Violations Are Wages

In an important decision impacting employers, the California Supreme Court in Naranjo v. Spectrum Security Services held that premium wages for meal and rest periods  as a result of meal and period violations, are considered “wages” under California law.  As a result thereof, employees may recover penalties if such premiums are not reported or reflected on pay stubs.  As set forth in our recent newsletter, it is important for employers to pay employees the one hour premium/penalty pay in the event a meal or rest period violation occurs. Click here for more information regarding what you need to know regarding meal and rest periods as set forth in our past post on meal and rest break violations.

The Naranjo decision further emphasizes the need to be vigilant when it comes to ensuring that employees receive their meal and rest periods. Moreover, when an employer determines that an employee did not receive their break, they must pay the required premium and such pay should be reflected and noted as a premium on their next paystub.

Should you have any questions or wish to discuss these or other employment issues impacting your business, contact our employer attorney Scott Liner at [email protected].