by Eric D. Morton
Here are a few 2022 legal updates for employers in California. These are a few, but significant, the changes to employment laws effective in 2022. This list is certainly not complete. California labor/employment is always changing. We recommend that employers annually review their policies and handbooks.
- Minimum Wage. Effective January 1, 2022, the state minimum wage increased to $15.00 per hour ($14.00 per hour for employers with 25 or fewer employees). The minimum monthly salary for California exempt employees increased to $5,200, or $62,400 annually. Note: Some counties and cities have higher minimum wages.
- Wage Theft. Intentional theft of wages, including tips, in an amount greater than $950.00 from a single
employee or $2,350 from two or more employees during any consecutive 12-month period is punishable as grand theft. The definition of “employees” who are protected by this law includes independent contractors. - Meal and Rest Period Premiums. Premium payments for missed meal periods, rest breaks, and recovery periods must be paid at the employees’ “regular rate of pay,” instead of their base hourly rate. The regular rate of pay may be higher than the base hourly rate because the regular rate of pay must include all nondiscretionary payments, such as most bonuses, commissions, and shift differentials.
- Record Retention. Personnel records must be retained for four years instead of two.
- In-Laws Included in the California Family Rights Act. California Family Rights Act (CFRA) (Government Code Section 12945.2) now includes parents in-law in the type of “family members” for which an employee can take leave. Last year, CFRA was expanded to cover any employer with 5 or more employees.
The above are just some of the changes in every evolving area California labor law. Next year, the California Consumer Protection Act (CCPA) will add more requirements for California employers. Be sure to consult with a human resources consultant or an attorney if you have any questions. Eric D. Morton is the principal attorney at Clear Sky Law Group, P.C. He can be reached at emorton@clearskylaw.com, 760-722-6582, or 510-556-0367.