The following changes to overtime compensation and minimum wage rates are applicable to employers with 26 or more employees (“Large Employers”) effective January 1, 2020
- The minimum wage rate is increased to $13 per hour.
- Employees must be compensated at overtime rates after 9 hours of work daily or 50 hours in a workweek.
- Employees must be compensated at two times the employee’s regular wage rate on the 7thday after 8 hours.
The following changes to overtime compensation and minimum wage rates are applicable to employers with 25 or fewer employees (“small employers”) effective January 1, 2020.
- The minimum wage rate is increased to $12 per hour.
- Overtime applies after 10 hours of work daily and the 7th consecutive working day.
- Employees must be compensated at two times the employee’s regular wage rate on the 7thconsecutive workday after 8 hours.
Overtime Hours and New Minimum Wage Rate Chart
Exempt Employees (Supervisory and Managerial):
There are no overtime changes in hours for salary-exempt employees (supervisory and managerial). To maintain exemption from overtime compensation requirements, the exempt employee’s weekly salary must be no less than two times the applicable minimum wage rate multiplied by a 40-hour workweek. For “large employers” the new minimum salary is $1,040 weekly; $4,507 monthly; $54,080 annually, effective January 1, 2020.
For “small employers” with 25 or fewer employees, the new salary rate is $960 weekly; $4,160 monthly; and $49,920 annually, effective January 1, 2020.
Note, salary-exempt employees who work part of the payroll period during the last week of December 2019 and into the first days of January 2020, should have their salary pro-rated accordingly.
Paid Sick Leave
Given the reduction of the “regular daily hours of work” from 9.5 hours to 9 under the new Ag overtime legislation (AB 1066), the State-required paid sick leave (PSL) hours are reduced from 9.5 hours to 9 and from 28.5 hours to 27 hours total for the three-days, effective January 1, 2020.
As a CCM member, you are entitled to one free hour of legal consultation with the Saqui Law Group on matters relating to labor law. We encourage our members to take advantage of this free service in advance of any potential legal situation. The purpose of the free hour is to be proactive and protect our business’ from expensive legal actions. To take advantage of this program you can contact the Saqui Law Group directly at (916) 782-8555 or contact the CCM office.
Additionally, CCM’s partner association California Agriculture Labor Association (CALA) is a valuable resource to citrus growers and packers and can help ensure your operation is in compliance with state and federal labor laws and regulations. CALA also offers a number of training and certification courses for members.
