The new 2016 wage and hour regulations can overwhelm employers in San Diego, and many area businesses are struggling to comply with the onslaught of new federal, state and local laws and regulations. The local minimum wage of $10.50 here in San Diego is a challenge for many employers, especially in the food and service industries. Restaurant operators and other businesses that involve “tipping” have been forced to re-examine the nature of compensation and the controls in place to ensure that all employees are compensated in accordance with new minimum wage laws. Governor Brown recently signed legislation that increases the minimum wage yearly until it reaches $15/hour in 2022. Violations of federal, state and local wage and hour laws will lead to expensive litigation and significant penalties for employers.
Significant changes in the California Fair Pay Act have significant ramifications for employers with multiple offices throughout the State, as well as those who employ shift workers. Employers in California (and those out-of-state employers with offices in California) may not justify pay differential based upon the geographical location of an office. In other words, even though it is much more expensive to live in one city than a more rural town, an employer may not increase the compensation of one worker over another doing “essentially the same work” based upon their geographical location.
Employers with multiple shifts must be cautious when an employee crosses over the hours defined for each shift, or for those working a “split-shift.” Overtime calculations for these employees can become quite complex under the new law, and reporting requirements on associated wage documents have become more challenging for San Diego employers.
2016 wage and hour regulations have overwhelmed many San Diego employers, and the costs for violating wage and hour laws can cripple many area businesses. The wage and hour attorneys at the Watkins Firm ensure that our clients conform with all federal, state and local wage and hour laws. We work to strengthen all employment related documentation such as our client’s policies and procedures, employee handbook, and in many cases the employment contract itself. Management staff must be trained to ensure they fully understand and consistently implement company policies and procedures in compliance with all wage and hour laws and regulations.
We invite you to contact us for a free and substantive consultation at 858-535-1511.