APPLICABLE MINIMUM WAGE is defined as the highest of federal, state or local rate. The current federal minimum wage is $7.25 an hour but in the city of San Francisco, the present minimum hourly wage is $15 while across the Bay in Emeryville, Calif., the minimum hourly wage is even higher at $15.69. In Southern California, the city of Los Angeles isn’t too far behind with a minimum wage of $13.25 an hour increasing to $14.25 in July 2019, and then again to $15 in July 2020.
While every state has their own laws, California is out front on this issue and the state has been a pretty accurate forecaster of coming national trends. In fact, not only is California leading the charge of increased hourly wages but the state’s Supreme Court decided California was also going to go in a new direction when considering the larger and long-debated question of employees versus independent contractors. Specifically, in its May 28, 2018 Dynamex ruling, the court held that all workers will be considered employees by the state until the employer can prove otherwise thereby reversing a national trend toward an independent-contractor driven economy. With this single decision, some estimate California will see an additional $7 billion in income tax revenue on an annual basis.
Thus, in considering California now, it is not so unlikely a similar outcome will unfold across the country in years to come. For every employer, the complexities of this new ruling will need to be addressed. For example, in California an employer must provide an off-duty, 30-minute meal period for employees who work more than five hours. However, if the total work period per day of the employee is no more than six hours, the meal period may be waived by mutual consent of the employer and employee.
There are many other questions to answer regarding rest breaks, scheduling, overtime, etc., and while it is always wise to document, acknowledge, review and update written policies, it equally as judicious to consider outsourcing as an option.
Mark Brenneman, PGA, is the chief business development officer for CADDIEMASTER, the premier provider of caddie management and training services with more than 50 partnerships in 22 states and four countries. He can be reached at [email protected] or 702-807-3448. For more information, visit caddiemaster.com.