California boasts a thriving economy, and keeping your hourly workforce happy and compliant with state labor laws is crucial for your business success. Here’s a breakdown of key regulations regarding hourly employee pay and required benefits in California, as of July 2024:

Minimum Wage:

• The current minimum wage in California is $16.00 per hour. This applies to all non-exempt employees, regardless of industry.
• Be aware: Some California cities and counties have established higher minimum wages within their jurisdictions. Always check local regulations to ensure compliance.

Overtime Pay:

• California overtime laws are more demanding than federal standards.
• Employees accrue overtime pay (1.5 times their regular rate) for any hours worked over eight in a single workday or 40 in a workweek. This means even a single extra hour on a weekday triggers overtime pay.
• Double-time pay (twice the regular rate) applies for all hours worked over 12 in a single workday or eight hours on the seventh workday of a workweek.

Meal and Rest Breaks:

• California law mandates meal and rest breaks for non-exempt hourly employees.
• Employees working over five consecutive hours must receive a minimum of a 30-minute, uninterrupted meal break. Employers cannot require them to work during this break.
• Employees working for three to five consecutive hours must be provided with a paid 10-minute rest break.

Required Benefits:

• California requires employers to provide paid sick leave to all employees who work at least 30 days within a year. The amount of paid sick leave depends on the company size:
  • Companies with 25 or more employees within a 75-mile radius must offer up to 48 hours of paid sick leave per year.
  • Smaller companies with 26 to 49 employees within a 75-mile radius must offer up to 40 hours of paid sick leave per year.
• California does not mandate paid vacation time. However, if you offer vacation as a benefit, it’s considered earned wages and must be paid out upon employee termination.

Additional Resources:

• California Division of Labor Standards Enforcement (DLSE): https://www.dir.ca.gov/dlse/
• California Department of Industrial Relations (DIR): https://www.dir.ca.gov/

Staying Compliant, Staying Ahead:

Understanding and adhering to California labor laws is essential to avoid costly fines and penalties. Consider consulting with a qualified employment attorney or human resources professional for further guidance.

Remember: Happy and well-compensated employees are more productive and loyal. By ensuring compliance with California labor laws, you build a strong foundation for a thriving workforce and a successful business.