Yesterday, California Governor Jerry Brown signed Assembly Bill 10 (AB 10) which raises the state’s minimum wage to $9.00/hour on July 1, 2014 and then to $10.00/hour on January 1, 2016. Unless some other state raises its minimum wage in the interim, the Governor’s signing of AB 10 gives California the highest state minimum wage… Read More
Posts Categorized In: Compensation and Benefits
ROBS — How to Convert a 401(k) Into Startup Funding
Entrepreneurs often ask me questions about startup funding — how and where they go about finding all the money they need to launch their ventures. These questions always lead to a conversation about friends-and-family, angel investors, seed funding firms (or “incubators”), venture capital firms, commercial banks, the SBA, and other government grants and funds. During… Read More
San Jose’s New Minimum Wage Ordinance Goes Into Effect
On March 11, 2013, San Jose’s Minimum Wage Ordinance went into effect. That law, which was passed by voters in the November 2012 election, requires employers to pay their employees a minimum wage of $10.00 per hour for work performed within the city limits and requires the minimum wage to increase annually by the cost… Read More
New Bill, AB 10, Seeks Increase in State’s Minimum Wage
On Monday December 3, 2012 — the first day of the next legislative session — Assembly member Luis Alejo (D-Salinas) introduced a new bill (AB 10) that would significantly raise the state’s minimum wage to $8.25 beginning in 2014. The bill proposes additional increases in 2015 (to $8.75) and 2016 (to $9.25). In addition, beginning in… Read More
Court Clarifies Employees’ Right to Reporting Time Pay
In California, most employers are required to pay “reporting time pay” to employees who show up for meetings or other work separate from their normal shift. The right to reporting time pay is codified in Section 5 of the Wage Orders, which states — “Each workday an employee is required to report for work and… Read More
The Executive Compensation Debate: New Study Debunks Old Assumptions
The financial meltdown that began in 2008 caused a lot of finger-pointing: who was to blame and why? Although the list of potential culprits is long and varied — from bank deregulation, to the increased use of credit default swaps and other hyper-complex financing structures, to a “play today, pay tomorrow” mentality that allowed average… Read More
Court Allows Chargebacks Against Advanced Commissions
In Deleon v. Verizon Wireless, LLC, the California Court of Appeal clarified when a commission advance may be “clawed back” by an employer. The answer depends on whether the advance payment was fully earned when advanced (which made the payment a wage which could not be clawed back) or if the advance payment had conditions… Read More
IRS Announces Guidance on Withholding of Tips
The IRS today released Internal Revenue Bulletin 2012-26 providing guidance on how taxes are imposed on tips under the Federal Insurance Contributions Act (FICA). The bulletin is in question-and-answer format and includes an explanation of both the employer’s and employee’s obligations. The bulletin also addresses the following issues: — The difference between a tip and… Read More
Governor Brown Signs SB 299 Requiring Employers to Continue Health Benefits for Employees on Pregnancy Disability Leave
On October 6, 2011, Governor Brown signed Senate Bill 299 (“SB 299”) which will require all California employers with more than 5 employees to continue group health insurance coverage for up to 4 months for employees on pregnancy disability leave (“PDL”). This represents a major change in California law. What is S.B. 299? Existing California… Read More