Orange County Employment Law Blog

Some employees in California might wonder how salary legally differs from overtime. Salary is financial compensation that an employee is paid regularly; it does not fluctuate. In contrast, overtime is paid to hourly employees when they work more than a certain number of hours or days.

Laws about wages, salary and overtime differ from country to country and from state to state. However, federal law in the United States is clear about the difference in salaried employees and hourly employees. A salaried employee might work more or fewer hours in any given week, but that does not change the amount the employee is paid. Salaried workers are not eligible for overtime pay.

The minimum wage is going to increase in California starting on Jan. 1, 2019. On that date, employers that have 26 or more employees will be required to pay workers no less than $12 per hour. Smaller companies will be required to pay workers at least $11 per hour. Eventually, the minimum wage in the state will rise to $15 per hour. Large companies will need to reach that threshold by 2022.

Smaller companies will need to do so by 2023, and the minimum wage will increase by $1 per hour each year until then. However, the minimum wage hike could be postponed if economic conditions warrant it, and the same could be true if budgetary concerns arise. In the meantime, it is possible that workers in certain cities throughout the state could be subject to a higher minimum wage. Anyone who is not paid the proper minimum wage is encouraged to contact the Labor Commissioner's Office.

Employees residing in California should be aware of examples of wage and hour disputes, which are especially common around Christmas. The push to get holiday shopping done in time results in employers pushing retail workers harder than ever to meet demand. Employees who complain or refuse to comply with their packed schedules may face retaliation. This leaves many employees feeling hopeless and choosing to not put up a fight, afraid their hours will be cut in response to their complaints. Some employees are even fired.

Scheduling problems include denial of time off, split shifts that force unpaid hours on workers and being let go early when they're not needed even though they were counting on the hours. Young workers are the most likely to deal with unreasonable schedules, likely because they are in no position to refuse. For example, research from the University of Chicago shows that nearly 40 percent of young workers are not given adequate notice of their work schedules, and the rates are even worse among part-time workers as well as people of color. Outside of young workers, nearly one in five experiences similarly unstable work hours. Overall, women and people of color are the most likely to be subjected to these abuses by their employers.

Workers in California have strong protections as part of state law, especially in regard to wage and hour issues. However, a law was signed into effect in September 2018 that affects the rest break requirements for certain safety-sensitive workers at petroleum facilities. Assembly Bill 2605 applies to unionized employees and exempts them from the requirement that they must have no duties at all during their rest periods. The law went into effect when signed and could be renewed in 2021 upon its expiration.

However, the law does not apply to all workers at petroleum facilities; instead, specific guidelines indicate which workers could be affected by the reforms in the law. It only applies to workers who have some reasonable connection to emergency response. For example, it affects workers who must carry radios, pagers or monitors and must be available to respond to an emergency incident. In addition, it affects only workers who are covered by a collective bargaining agreement and receive hourly pay of at least 30 percent more than minimum wage.