This course is designed to provide California managers, or anyone responsible for managing employees or human resources in California, with the critical information they need related to:TerminologyIndustrial Wage OrdersMinimum WageRegular Rate of PayOvertime PremiumsDouble Time PremiumsMeal PeriodsRest PeriodsRecording TimePenalties for ViolationsBest Practices

Table of Contents

Chapter 1: Important Terminology

When it comes to dealing with employee wages, rates of pay, meal & rest periods, and other related areas, there are usually two sets of “lingo” used.

For purposes of this training, we will classify the two sets as:

  1. Human Resources Lingo
  2. Non-Human Resources Lingo

Although many non-HR professionals have knowledge of both, it is important to ensure that the HR Lingo is used when it comes to compliance with local, state and federal labor & employment laws.

Chapter 2: California Industrial Wage Orders (IWC)

The Industrial Welfare Commission was established to regulate wages, hours and working conditions in California.
There are 17 such orders that are also known as IWC Orders or Wage Orders.
These are especially important as some Wage Orders have exceptions to wages, hours, meal periods, rest periods, and working conditions.
Due to the numerous labor laws affecting wages, hours, meal & rest periods, and working conditions, it is important that companies identify and familiarize themselves with the respective orders.

It is also important to note that businesses may have one or several Wage Orders that apply.

Chapter 3: Minimum Wage

Minimum wage refers to the local, state or federal minimum hourly rate of pay that can be paid to an employee for performing work.

When it comes to determining the applicable minimum wage, you must apply the greater rate of pay.

For example, if the federal minimum wage is $9.00 per hour, the state minimum wage is $10.00 per hour, and the employee works in a city or county that has a minimum wage of $11.00, you are required to pay the employee $11.00 per hour.

As an employer, you are required to pay the prevailing minimum wage to your non-exempt employees, thus, it is important to be aware of potential conflicting minimum wage requirements, as well as how to determine the prevailing rate.

Chapter 4: Overtime

Overtime premiums refer to a non-exempt employee’s rate of pay when they exceed the state or federal defined regular hours worked.

Unlike federal law, which defines overtime as hours worked over 40 in a workweek, California overtime is based upon:

  • Any hours worked over 8 in a workday OR
  • Any hours worked over 40 in a workweek

...whichever benefits the employee.

Thus, it is important to be sure that both workday and workweek overtime worked is considered.

Double-time premiums are specific to California and are triggered by two events:
  • When an employee works over 12 hours in a workday AND
  • When an employee works over 8 hours on the 7th day worked in a workweek (this will be discussed next).

Double-time premiums are calculated at 2 X the employee’s regular rate of pay.

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