Minimum Wage in California affects

Minimum Wage:

In 2017 California implemented a measure that set an incremental minimum wage increase to $15 per hour by 2023. Lesser known is that California also raised the exempt employee (generally those that are salary) minimum salary as the equivalent of double the hourly employee’s minimum wage. At the start of 2019, the minimum salary for executives became $45,760 per year (80 hours X 26 pay periods X minimum wage X 2 = $45,760). When we reach 2023 it will have grown to $62,400. This may be out of reach for many centers. Ultimately this means over the next 4 years our revenues need to increase significantly to bear this new amount. I would stress that we should do everything we can to rise to this occasion, and even to surpass it.

 

These verses convicted me as California was wrestling with adjusting the minimum wage. They also helped me see my staff in a different light: James 5:1-6, Colossians 4:1, Malachi 3:5, Deuteronomy 24:14-15, and Jeremiah 22:13. The Bible is full of verses instructing the employer to treat employees more than fairly, but also with abundance as was modeled by our Lord! Was I taking advantage of my wonderful staff by suppressing wages since they are in service to the Lord and laying up treasure in heaven? WE ARE NONPROFIT AFTER ALL!!! But in light of these scriptures, I think it is incumbent upon us to do even better than the minimum. That being said, I know my clinic is blessed by being in a metropolitan area and we have a good support base. Each of our centers however started small and have grown over time. Perhaps the minimum salary is too much for your budget right now. Here are a few options: 1. Your Executive Director could be volunteer, 2. Your Executive Director could revert to hourly. The State will discover in your payroll journals and W-2s if you are not meeting the minimums, so you should not ignore the minimum wage. The fines are severe! And in considering options 1 or 2 the leadership of your center should have the above Bible Verses in mind to ensure they are not abusing you, and also to ensure that there is the ability for growth in the future. Time and Wages = real growth in revenues over time! Lastly all of the above is true of centers with 25 or fewer employees. If yours is the Rare 26+ (and your temps are included), then there is a different higher minimum standard for you to meet.

 

City Differences:

I was surprised to learn that San Diego City had different minimum wage laws than the rest of the State. In my case, if an employee works 2 or more hours in the city of San Diego, they are subject to San Diego’s higher minimum wage standards. AND higher sick leave minimums. Since my banquets have been held in the City, and I paid all my employees to be there, I had to meet San Diego standards even though my office is two suburbs away in El Cajon! According to my Cal Chamber catalogue, there are different standards apart from California State’s minimums in:

I don’t know if this list is exhaustive. In nearly every case, if there are two conflicting minimum wages, you must always implement the higher one. I purchase all the required posters and notices from CalChamber, and my local chamber of commerce has them. I also purchase the protection plan so I am alerted to new laws, because new posters come in the mail automatically. You will have to dig in to find out how your city is different compared to the State.

 

Number of Employees:

I am studying right now about what happens when your number of employees go up, and when certain triggers kick in. My clinic just reached 10 employees… including my temps. We had to comply with a few new regulations as a result. And in some cases volunteers are considered “employees.” So stay tuned for more on that.