5 Tips for Navigating Minimum Wage Laws

May 26, 2021

 

Transcript:

The Raise the Wage Act, if passed, will increase the federal minimum wage for the first time in over a decade. We took this as a sign to delve into the laws behind minimum wage. Especially since minimum wage considerations play a
large role in California start-up growth and operations.

Starting with these 5 Tips for Navigating Minimum Wage Laws:

Tip 1: Understand worker classifications.

Are they an employee or an independent contractor? If they’re an employee, are they exempt or non-exempt employee? These classifications matter.

Tip 2: You need to pay (at least) minimum wage to all employees.

And, no – founder’s equity doesn’t count! Employees can’t agree to be paid less than minimum wage – and you can’t offer benefits in lieu of wages.

Tip 3: Employee contracts offer essential protections and set expectations.

Employee contracts protect and empower both employers and employees. You need to get them right! This is especially true in a remote workforce.

Tip 4: Minimum wage entitlements for remote workers can be complicated.

Know the laws in every county and state your workers operate in (as well as federal laws) – and abide by them. Outsource if you can’t manage this in house.

Tip 5: There are serious consequences for non-compliance with local and federal wage laws.

In California, violations range from $50 per violation per worker per day to $1000 per worker per day. That’s in addition to paying the unpaid wage entitlements.
Need help navigating minimum wage laws? We’re here!

Disclaimer

The materials available at this website are for informational purposes only and not for the purpose of providing legal advice. You should contact your attorney to obtain advice with respect to any particular issue or problem. Use of and access to this website or any of the e-mail links contained within the site do not create an attorney-client relationship between CGL and the user or browser. The opinions expressed at or through this site are the opinions of the individual author and may not reflect the opinions of the firm or any individual attorney.

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