Mid-Year Updates

Once upon a time, all the legal changes in California became effective on January 1st. But that was then. The past several years have shown us changes can go into effect at any time so we have to be more diligent if we want to be compliant.

This July 1st, 2020, is the effective date for the following changes:

  • Paid Family Leave (PFL) — This is currently 100% paid by employee taxes but it is not an actual leave. Employees may receive supplemental pay from the state if you have approved a leave and the employee has an eligible reason. The most common use of PFL is for baby bonding. Since PFL began, the maximum time has been 6 weeks but that has now been expanded to 8 weeks.
  • New Local Minimum Wage — The City of Santa Rosa has set a minimum wage of $14-15 per hour, depending on the size of the company. This will become $15 per hour for all employees in January.
  • Increased Minimum Wages — The following localities have a mid-year increase in their minimum wage:
    • Alameda: $15.00/hour
    • Berkeley: $16.07/hour
    • Emeryville: $16.84/hour
    • Fremont: $15.00/hour if 26+ employees; $13.50/hour if 25 or fewer employees
    • Los Angeles City: $15.00/hour if 26+ employees; $14.25/hour if 25 or fewer employees
    • Los Angeles County (unincorporated areas): $15.00/hour if 26+ employees; $14.25/hour if 25 or fewer employees
    • Malibu: $15.00/hour if 26+ employees; $14.25 if 25 or fewer employees
    • Milpitas: $15.40/hour
    • Novato: $15.00/hour if 100+ employees; $14.00/hour if 26-99 employees; $13.00/hour if 25 or fewer employees
    • Pasadena: $15.00/hour if 26+ employees; $14.25/hour if 25 or fewer employees
    • San Francisco: $16.07/hour
    • San Leandro: $15.00/hour
    • Santa Monica: $15.00/hour if 26+ employees; $14.25/hour if 25 or fewer employees

This is a good time to remind you that your remote employee must be paid based on where their home office is located since that’s where they are now working. Review the home addresses of anyone working remotely and confirm their pay (and often paid sick time) meets the requirements of that locality.

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