Cupertino, California, recently announced that on January 1, 2017, workers will receive a minimum wage increase bringing the new rate to $12 per hour. This is one of three steps the city is taking to bridge the minimum wage to $15 per hour. While the state of California plans to reach $15 per hour in 2022 for employers with more than 25 employees and 2023 for employers with less than 25 employees, Cupertino has accelerated their rate and will reach $15 by 2019.
Cupertino is just one of many cities and states implementing minimum wage increases in 2017.
Who Is Impacted?
All employers who maintain a place of business within Cupertino must pay employees the new minimum wage with the following exclusions and notations:
- Salaried employees are exempt and subject to state law which requires a minimum monthly salary of no less than two times the state minimum wage for full-time employees.
- State and federal agencies, including school districts, are not required to pay minimum wage when work performed is related to their governmental function.
- Tips and fringe benefits do not count toward the minimum wage obligation.
- Commissions may be counted if they are earned and paid with other standard compensation.
Penalties
Employers who fail to comply with the minimum wage law are subject to daily fines of $50, or an employee may seek legal action for further relief and damages.
What must employers do?
- Employers will obviously want to look at the wages of all workers and be prepared to make adjustments, where necessary, by January 1, 2017.
- Cupertino also requires that employers provide notice in writing to every employee at the time of hire and also provide the employers name, address and telephone number along with the notice.
- Employers must document all hours worked for employees and maintain such records for four years.
- Employers are also required to display the minimum wage poster, in relevant languages, in locations of the business where employees frequently visit and have visibility such as lunch rooms, break rooms, etc.
Now is a good time for employers to ensure that they are fully compliant in their labor law posting requirements. All employers must display specific federal and state posting requirements in addition to the Cupertino minimum wage notice. The Cupertino poster, as well as the California all-in-one labor law poster is available through The Labor Law Center and comes with a guarantee of full compliance to your posting requirements.
