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New Year, New Laws 2025: What You Need to Know
California’s laws are changing—again. Starting January 1, 2025, new rules will impact everything from minimum wage and vehicle insurance to workers’ rights. This guide breaks down the laws that matter most, giving you the essentials to stay compliant, informed, and ready for the New Year.
Minimum Wage Increase to $16.50
Beginning January 1, 2025, California’s minimum wage will increase to $16.50 per hour, applying to all employers regardless of their size or industry. Some cities and counties in California have higher minimum wage requirements.
This increase represents a crucial shift for both workers and employers. For employees earning minimum wage, this boost can make a meaningful difference in daily expenses, supporting low-income families and reducing financial strain. It’s a step forward for workers trying to stay afloat in one of the most expensive states in the country.
For employers, however, this means preparing for higher payroll costs, especially for small businesses that rely on lower-wage workers. While the increase brings new challenges, it’s also an opportunity to create a more sustainable workforce. Small business owners can plan ahead by revisiting budgets, analyzing operational expenses, and finding ways to absorb these additional payroll costs. Employers might consider strategies to improve efficiency and productivity, helping to offset the impact of the wage increase.
SB-1107: Increased Minimum Vehicle Liability Insurance Coverage
Starting January 1, 2025, Senate Bill 1107 raises the minimum vehicle liability insurance requirements across California, impacting private passenger cars, commercial vehicles, and recreational vehicles. This law is designed to offer better financial protection in case of an accident, ensuring drivers and their insurers cover more of the potential damages and injuries.
Key Changes in Minimum Coverage
Under SB-1107, the new minimum liability limits will double the 2024 requirements. Here’s a breakdown of the updated minimums:
Injury to One Person: Minimum coverage increases to $30,000, doubling the previous $15,000 requirement.
Injury or Death of More Than One Person: Coverage now requires $60,000 as the minimum, up from the previous $30,000 limit.
Property Damage: The new minimum liability for property damage has also doubled to $15,000.
These updated minimums are significant for private drivers, commercial fleet managers, and business owners, as they provide a more substantial financial safety net for accident victims. The increased coverage helps ensure accident-related costs are covered, reducing out-of-pocket expenses for victims and enhancing the overall protection provided by liability insurance.
Impact on Californians
With higher minimum liability requirements, Californians should prepare for changes in their insurance policies:
Insurance Premiums: These higher liability minimums will likely lead to increased insurance premiums. While the exact increase varies based on the driver, vehicle, and insurance provider, the rise in coverage minimums reflects an enhanced level of protection. This means drivers will carry policies capable of covering a greater share of damages, potentially lowering the financial risk of significant out-of-pocket expenses.
Implications for Fleet Managers and Business Owners: Business owners managing vehicle fleets will also feel the impact of these changes. Ensuring each vehicle meets the new minimum requirements may increase operational costs, but it provides better protection against the costs associated with accidents and potential liability claims. Compliance with these new insurance standards is crucial for staying on the right side of California law.
AB 2499: Expanded Employee Rights for Jury Duty, Court, and Victim-Related Time Off
With the signing of Assembly Bill (AB) 2499 on September 29, 2024, California has expanded employee rights for taking time off for jury duty, court appearances, and victim-related activities. This law broadens protections for employees needing time off for personal or family-related legal responsibilities, reinforcing anti-retaliation measures and adding clarity around employee rights.
Expanded Protections
AB 2499 builds on existing protections, allowing employees to take time off without fear of retaliation when participating in jury duty, appearing in court, or supporting a family member who is a victim of certain crimes. Under the new law, “victim” is more broadly defined to include individuals affected by qualifying acts of violence such as domestic violence, sexual assault, stalking, or threats of bodily harm.
The law also permits employees to use their accrued vacation, paid sick leave, or personal leave for these types of time off. This flexibility provides employees with additional financial security, enabling them to manage these legal obligations without having to sacrifice their regular income.
Employer Requirements
Employers must provide written notice of these rights to all employees upon hiring, annually, and upon request. In addition, if an employer becomes aware that an employee or their family member is a victim, they must remind the employee of these rights.
AB 2123: Changes to Paid Family Leave (PFL) Usage
California’s Paid Family Leave (PFL) program, established to provide partial wage replacement for employees caring for a new child or seriously ill family member, has seen numerous updates over the years aimed at making leave more accessible. In 2025, Assembly Bill 2123 introduces a key change: employers can no longer require employees to use up their accrued vacation time before accessing PFL benefits.
This change gives employees greater control over their leave, allowing them to use PFL without depleting their vacation days. For many, this means less financial strain and more flexibility when dealing with family care needs, as they can now retain accrued vacation for other personal time.
For employers, AB 2123 necessitates updates to HR policies to reflect the new rule. Clear communication to employees about these changes will be essential. Employers should review their leave policies, ensuring they align with AB 2123 to remain compliant while supporting employees’ family care responsibilities.
SB 399: California Worker Freedom from Employer Intimidation Act
The California Worker Freedom from Employer Intimidation Act, enacted under Senate Bill 399, aims to protect employees from being compelled to attend employer-sponsored meetings where political or religious views are discussed. This law addresses the growing concerns around workplace pressure and aims to safeguard employee rights, especially during union organizing efforts.
Under SB 399, employers can no longer require workers to attend meetings intended to convey the employer’s stance on political or religious matters. This restriction empowers employees to make personal decisions without workplace influence on sensitive beliefs or opinions.
SB 988: Freelance Worker Protection Act
Designed to establish fairer terms and clearer expectations, this law ensures that freelancers are legally supported and compensated for their work. For many freelancers operating as one-person businesses, SB 988 sets a baseline for secure, equitable contracts and a reliable path to payment.
Key Requirements for Contracts
To qualify under the law, a freelance worker must be an individual or entity with no more than one person and must be engaged as a bona fide independent contractor. Importantly, this law does not require a freelancer to have a formal corporate structure, though they can. Contracts with these freelancers must meet the following criteria:
Minimum contract amount: $250 or more.
Clearly stated terms for the services provided, payment schedule, and any deadlines.
Significance for Freelancers and Hiring Parties
For freelancers, SB 988 represents a win in the fight for fair working conditions, helping to level the playing field in a gig economy often marked by inconsistency. Having contracts that meet these legal standards means freelancers can more confidently take on work.
For hiring entities, compliance with SB 988 offers the chance to establish good-faith relationships with freelance workers. Businesses should review existing contract templates to ensure they meet the new requirements, including payment terms and work scope.
AB 1870: Workers’ Compensation Rights Awareness
This new law is designed to ensure injured workers know they have the right to seek legal guidance on their workers’ compensation claims and understand that attorney fees are typically covered by the award they receive. By promoting greater awareness, AB 1870 empowers employees to make informed decisions following a workplace injury.
Key Requirements for Employers
AB 1870 requires California employers to include specific information in their workers’ compensation notices, making it clear that:
Injured employees have the right to consult an attorney for advice on their claims.
Attorney fees are usually deducted from the workers' compensation award, meaning injured workers don’t face additional out-of-pocket costs for legal representation.
Impact on Injured Workers
For employees, this law provides critical support, especially during the stressful period following an injury. Knowing that legal guidance is available without up-front costs can make a significant difference, helping injured workers understand their benefits and protecting their rights through each step of the claims process.
Employers should act now to comply with AB 1870 by updating all workers’ compensation notices to include these details. Clear communication about these rights will not only meet legal requirements but will also build trust and transparency in the workplace.
Stay Informed and Protected in 2025
As California ushers in the New Year, these updated laws bring significant changes for workers, employers, freelancers, and drivers alike. From increased minimum wage and expanded workers’ compensation rights to protections for freelance and unionized workers, these updates reflect California’s commitment to fairer and safer standards across the board.
If you have questions about how these laws impact you, don’t navigate it alone. Reach out to PARRIS Law Firm for guidance on staying compliant and ensuring your rights are protected.
Unemployment and Lost Wages Claims in Car Crash Cases
Every year, countless Californians and visitors suffer serious injuries in auto accidents, with many unable to return to work either temporarily or permanently. This unfortunate reality underscores the importance of understanding the legal avenues available for financial relief, particularly regarding unemployment benefits and lost wage claims.
When you are sidelined by an accident, the mounting bills coupled with lost income can lead to immense financial strain. In California, you may seek compensation not only for your medical expenses but also for wages lost due to your inability to work.
How Unemployment Benefits Work in California
Unemployment benefits in California are designed as a safety net for individuals who, through no fault of their own, find themselves without work. These benefits are administered by the California Employment Development Department (EDD), providing temporary financial assistance to eligible individuals.
With auto accidents, the aftermath can be life-altering. Injuries may prevent you from resuming your regular employment duties, leading to a loss of income. In such instances, you may qualify for unemployment benefits, provided you meet certain eligibility criteria.
To be eligible for unemployment benefits in California, you must have lost your job due to circumstances beyond your control, like a car accident. You should also be actively seeking employment and be physically able to work. However, if your injuries from the car accident prevent you from working, you may qualify for State Disability Insurance (SDI) instead. SDI is a partial wage-replacement insurance plan for eligible California workers, covering temporary disabilities including those incurred outside of work like in a car accident.
Lost Wages Claims in Car Accident Cases
Lost wages refer to the income you would have earned from your job if you hadn't been injured. They cover not only the actual earnings lost during the time you were unable to work but also future earnings if your injuries prevent you from returning to work or limit your capacity to earn.
Calculating lost wages involves several elements. First, if you've missed days, weeks, or even months of work because of your injuries, you calculate these lost wages by multiplying your daily wage by the number of workdays you missed. If you're paid hourly, multiply your hourly wage by the hours you missed. For salaried individuals, divide your annual salary by 2,080 (the standard number of work hours in a year) to find your hourly wage, then multiply this by the hours missed.
However, things become more complicated if your injury has long-term consequences affecting your capacity to earn. In such cases, the calculation includes factors like the difference between what you were earning before the accident and your post-accident earning capacity, considering your qualifications, skills, experience, and the labor market conditions. This is often referred to as a loss of earning capacity claim.
Filing a lost wage claim starts with gathering evidence. This includes medical records that prove the severity of your injuries, a doctor's note stating you're unable to work, and documentation of your regular income (like pay stubs or tax returns). Once you have all the necessary documents, you submit them to the at-fault party's insurance company along with a demand letter explaining your claim.
Insurance companies play a significant role in lost wage claims. While their primary objective is to compensate for losses incurred due to their policyholder's negligence, remember, they are businesses aiming to minimize payouts. Therefore, they may scrutinize your claim thoroughly, possibly disputing the extent of your injuries, your inability to work, or the calculation of your lost wages.
This is why it's crucial to have a comprehensive and well-documented lost wage claim. A personal injury attorney can be instrumental in this process, helping you gather the necessary evidence, accurately calculate your lost wages, and negotiate with insurance companies. They can also represent your interests if your claim goes to court.
The Necessity of Pursuing Lost Wage Claims
After a car accident, the financial implications can be as distressing as the physical injuries. Besides medical bills, the inability to work can lead to a significant loss of income, making it difficult to meet your financial obligations.
Lost wage claims help you recover the income you would have earned had you not been injured. They cover not only actual earnings lost during your recovery but also potential future earnings if your injuries prevent you from returning to work or limit your earning capacity. By pursuing a lost wage claim alongside your personal injury claim, you work to secure comprehensive compensation that covers all aspects of your financial needs.
Rent or mortgage payments, utilities, groceries, and other living expenses don't stop because you've been injured. If you're unable to work for an extended period, these costs can quickly become overwhelming. Lost wage claims address this gap, providing the financial support you need to maintain your standard of living.
Pursuing a lost wage claim isn't just about recovering lost income; it's about securing your financial stability in the wake of an unexpected event. Without this claim, you risk depleting your savings or falling into debt, which can further complicate your recovery.
The Role of a Personal Injury Lawyer in Unemployment and Lost Wages Claims
Navigating the complexities of unemployment benefits and lost wage claims after a car accident can be overwhelming. This is where the experience of a personal injury lawyer can be invaluable. A skilled lawyer can guide you through these intricate processes, ensuring you receive the compensation you're entitled to.
A personal injury lawyer brings extensive knowledge of California's legal landscape to the table. They understand the eligibility criteria for unemployment benefits and how to calculate lost wages accurately. They can help gather necessary evidence, such as medical records that prove your injuries and employment documents that substantiate your income loss. This comprehensive approach increases the likelihood of a successful claim.
A lawyer can handle all communications with insurance companies on your behalf. Insurance companies often use tactics to minimize payouts, which could involve disputing your injuries or questioning your inability to work. Having a lawyer represent you can counter these strategies effectively, ensuring your rights are protected.
If your claim is denied, a lawyer can help appeal the decision. They can identify any errors in the initial claim process and correct them, increasing your chances of a favorable outcome. Where litigation becomes necessary, a personal injury attorney can advocate for you in court, presenting a compelling case for your entitlement to lost wages and unemployment benefits.
Frequently Asked Questions About Unemployment and Lost Wages Claims
1. Can I get unemployment benefits even if I've already received a personal injury settlement?
Yes, it is possible to receive unemployment benefits even after receiving a personal injury settlement. However, the specifics may vary based on your case. It's important to note that unemployment benefits are designed for those who are ready and able to work but are unable to find employment. If your injuries from the accident prevent you from working, you may not qualify for these benefits.
2. How long does it take to receive compensation from a lost wage claim?
The time it takes to receive compensation from a lost wage claim can vary widely. It depends on many factors, such as the complexity of the case, the willingness of the insurance company to settle, and whether litigation is necessary. It could take anywhere from a few months to a few years.
3. What documentation do I need to support my lost wage claim?
To support your lost wage claim, you'll typically need proof of your earnings before the accident and medical documentation attesting to your injuries and their impact on your ability to work. This might include pay stubs, tax returns, doctor’s notes, and any other relevant documentation.
4. Can I make a lost wage claim if I'm self-employed?
Yes, if you're self-employed, you can still make a lost wage claim. However, it might be more complex to prove your lost income. You would likely need to provide tax returns, invoices, and other financial documents that show your typical earnings.
5. How can a lawyer help me with my lost wage claim?
A lawyer can guide you through the process of making a lost wage claim, helping you gather necessary documentation, calculate your lost wages accurately, and negotiate with insurance companies. They can advocate for your rights and work to ensure you receive the compensation you're entitled to.
Securing Your Financial Future: The Importance of Professional Legal Assistance
The importance of pursuing lost wage claims cannot be overstated. They provide vital financial support, covering not just medical expenses but also living costs and potential future earnings. They are a crucial tool in securing your financial stability after a life-changing event like a car accident.
However, navigating these claims can be complex and challenging, especially when dealing with insurance companies aiming to minimize payouts. This is where professional legal assistance becomes invaluable. A skilled personal injury lawyer can guide you through these intricate processes, ensuring you receive the compensation you're entitled to.
At PARRIS Law Firm, we specialize in personal injury law and have extensive experience in handling unemployment and lost wage claims. Our team is dedicated to advocating for your rights and securing your financial future. If you've been injured in a car accident and are facing potential loss of income, reach out to us. We're here to help you navigate this challenging journey, providing the support and guidance you need every step of the way. Contact us today for further assistance with your claims.
To learn more about securing unemployment benefits following a car accident, explore the insights provided in this article.
Collecting Unemployment After an Auto Accident
When a car accident occurs, the immediate concern is physical recovery. Yet, often lurking in the aftermath is the daunting reality of unemployment due to injuries sustained. For many, this is a predicament that compounds the physical pain with financial stress.
If you’re reading this, you or someone you know might be grappling with this exact situation in California. We understand the strain you’re under, and we’re here to help.
Understanding Unemployment Benefits
Unemployment benefits serve as a financial safety net for individuals who find themselves out of work through no fault of their own. These benefits are temporary wage replacements provided by the state to support people while they search for new employment.
To be eligible for unemployment benefits, you must meet certain criteria. Generally, you must be unemployed due to circumstances beyond your control, such as layoffs, and you must be actively seeking employment. However, what if you’re unable to work due to injuries from a car accident?
In California, the Employment Development Department (EDD) administers unemployment benefits. According to EDD, to qualify for these benefits, you must be physically able to work, available for work, and ready to accept work. But the law does provide some flexibility for those who are temporarily unable to work due to a physical condition, including injuries from a car accident.
If you’ve been injured in a car accident and can’t work, it’s crucial to understand how this situation interacts with your eligibility for unemployment benefits. If your injuries prevent you from performing your regular job duties but you are willing to accept suitable work considering your physical condition, you may still be eligible for benefits. For example, if you previously worked in construction but are now limited to desk jobs due to your accident, you could potentially qualify.
However, navigating these waters can be complex. California’s laws and regulations regarding unemployment benefits are intricate, and understanding the nuances related to your specific situation can be challenging. The state looks at factors like your medical condition, your previous job, your current ability to work, and the availability of suitable work in evaluating your eligibility.
Receiving unemployment benefits after a car accident involves more than just understanding the law. You’ll need to interact with insurance companies, possibly negotiate with your former employer, and navigate the EDD’s bureaucratic processes.
The Process of Claiming Unemployment Benefits After an Auto Accident
Step 1: Gather Your Information
Before you begin the application process, it’s essential to gather all necessary information. This includes your Social Security number, driver’s license number, details about your employment history, and medical documents pertaining to your car accident. Ensuring you have all relevant information at hand will streamline your application process.
Step 2: File Your Claim
In California, you can file your unemployment claim online, by phone, by mail, or by fax. The fastest way is usually online through the EDD’s website. Be prepared to provide details about your last employer, your earnings, and the reason for your unemployment. Remember to mention that you are unable to work due to injuries sustained in a car accident.
Step 3: Register with CalJobs
Registering with CalJobs, California’s online job search portal, is usually a requirement. However, if you’re temporarily unable to work due to your injuries, you may be exempt from this requirement. Make sure to clarify your situation when filing your claim.
Step 4: Wait for Your Notice of Determination
After you’ve filed your claim, the EDD will review your application and send you a Notice of Determination. This document will state whether you are eligible for benefits and, if so, how much you will receive.
During this process, it’s vital to be aware of potential challenges you might face. One significant hurdle is meeting the EDD’s criteria for being “able and available” to work. As mentioned earlier, if you’re willing to accept suitable work considering your physical condition, you may still qualify for benefits. However, proving this can be a complex task, requiring careful documentation of your injuries, your job search efforts, and any job offers you may have received.
Another challenge is dealing with the EDD’s bureaucratic processes. Mistakes on your application, delays in receiving your Notice of Determination, or disputes over your eligibility can all complicate your claim. It’s crucial to stay organized, keep copies of all documents, and follow up regularly on your claim’s status.
Legal hurdles can also arise during this process. If your former employer disputes your claim or if you face potential discrimination due to your injuries, you may need to seek legal advice.
How a Personal Injury Claim Can Impact Your Unemployment Benefits
When you’re out of work because of an auto accident, you may consider two distinct paths for financial support: unemployment benefits and a personal injury claim. Unemployment benefits exist to aid those who are jobless through no fault of their own and are actively seeking work. A personal injury claim is a legal dispute that occurs when one person suffers harm from an accident or injury, and someone else might be legally responsible for that harm.
So, how does filing a personal injury claim affect your eligibility for unemployment benefits?
Let’s start with a fundamental point: Compensation from a personal injury claim can impact your eligibility for unemployment benefits. The devil, as always, is in the details. If your personal injury compensation is classified as reimbursement for lost wages, it might be seen as income. This could, in theory, affect your unemployment claim. However, if the payment is for medical bills or pain and suffering, it is typically not considered income for unemployment benefit purposes.
Now, let’s add another layer of complexity: timing. If you receive a lump sum from your injury claim while you are also collecting unemployment benefits, you may need to report this to EDD. Depending on the specifics of your case and how the settlement is structured, this could influence your benefit amount.
In essence, the interplay between a personal injury claim and unemployment benefits is not a simple one-size-fits-all situation. Understanding these nuances requires a deep dive into the specifics of your case and a comprehensive understanding of California law.
And this is where we come in. As a personal injury law firm, we at PARRIS have the necessary expertise to guide you through this complex intersection. We can help navigate the intricacies of your case, ensuring you understand how a personal injury claim could impact your unemployment benefits, and vice versa.
Potential Hurdles and Obstacles
The road to securing unemployment benefits after an auto accident is not always smooth. It’s more akin to a Californian freeway during rush hour—expect delays, detours, and occasional gridlocks. But with careful navigation, you can reach your destination.
Legal Hurdles
The law is vast and complex, filled with nuances and fine print that can trip up even the most careful reader. When it comes to unemployment benefits, the legal landscape can be particularly challenging.
One such challenge is meeting EDD’s criteria for eligibility. To qualify, you must be “able and available” to work. However, if you’re recovering from a car accident, this requirement might seem like a significant roadblock. Fear not. You may still qualify if you’re willing to accept suitable work considering your physical condition. Proving this willingness, however, requires careful documentation and potentially legal advice.
Employer-Related Hurdles
Then some obstacles could arise from your former employer. Imagine this scenario: You’ve filed for unemployment benefits, but your former employer disputes your claim, arguing that you left voluntarily or were fired for misconduct. This dispute can throw a wrench in your unemployment benefits claim.
Another potential hurdle is if your employer inaccurately reported your earnings to the EDD, leading to a lower calculated benefit amount. Or what if your employer classifies you as an independent contractor instead of an employee, potentially disqualifying you from benefits entirely?
These challenges can feel like running into a brick wall, but remember, there are ways around them. In each case, it’s crucial to have solid evidence on your side—documentation of your employment, earnings, and the circumstances of your job loss.
When the Road Gets Bumpy, We Smooth It Out
We understand that the interplay between unemployment benefits and personal injury claims can be as complex as the Los Angeles freeway system. That’s why we’re here to guide you through every twist and turn, ensuring you don’t miss an exit or take a wrong turn.
So, if you find yourself unemployed due to a car accident, don’t navigate this road alone. There’s no need for you to become an overnight guru in personal injury law or the nuances of the EDD. That’s our job. Your job is to focus on your recovery.
Contact PARRIS Law Firm today. Let us handle the legal complexities so you can concentrate on what matters most—your health and well-being.
Santa Clarita Minimum Wage Increase 2024 and What It Means for Workers
As the New Year begins, workers in Santa Clarita will wake up to a small but significant change: an increase in the minimum wage to $16 per hour. This adjustment, as reported by the Department of Industrial Relations (DIR), aligns Santa Clarita with the statewide minimum wage for California, which also increased as of January 1, 2024, to $16 per hour.
While some cities within the Golden State offer higher wages, Santa Clarita sticks to the state’s rate. For workers in Santa Clarita, your new minimum wage will be $16 per hour in 2024. However, it falls slightly short when compared to LA County’s minimum wage of $16.90.
Santa Clarita vs. LA County Minimum Wage
Despite being geographically nestled within Los Angeles County, Santa Clarita has aligned with the state’s minimum wage. In contrast, unincorporated areas of LA County have set their minimum wage at $16.90 per hour as of July 1, 2023.
The difference, albeit minor, is due to a critical distinction in governing laws. LA County has a county ordinance that allows it to set its own minimum wage for unincorporated areas, giving it the liberty to incrementally increase the wage each year. Santa Clarita, being an incorporated city, has opted to follow the state’s wage guidelines. This means despite its location within LA County, Santa Clarita isn’t subject to the county’s wage ordinance.
What does this mean for workers? If you’re employed in Santa Clarita proper, the city’s adherence to the state minimum wage applies to you. However, if your workplace falls within the unincorporated areas of LA County, you’re entitled to the slightly higher county minimum wage. Understanding these distinctions is vital in ensuring you’re receiving the correct compensation for your hard work.
Understanding Employee Exemptions and Overtime Laws
An exempt employee is one who is exempt from the state’s minimum wage and overtime laws. They’re typically salaried workers in executive, administrative, or professional roles. Nonexempt (or hourly) employees are paid at least the state minimum wage and are entitled to overtime pay for hours worked beyond a 40-hour workweek, and in California, hours worked beyond eight in a single workday.
California law requires an exempt employee must earn a minimum salary equivalent to twice the state minimum wage for full-time employment. Given the new minimum wage of $16 per hour, this means that an exempt employee must earn at least $66,560 annually (that’s $16 x 2 x 40 hours per week x 52 weeks). If you earn less than this, your employer is supposed to classify you as nonexempt.
What does this mean for workers? If you’re an exempt employee earning less than $66,560 annually, your employer is in violation of California law. You should be classified as nonexempt and entitled to the protections that status offers, including overtime pay.
In California, nonexempt employees are entitled to 1.5 times their regular rate of pay for all hours worked beyond eight in a day or 40 in a week, and for the first 8 hours worked on the seventh consecutive day of work in a workweek. Double time is owed for all hours worked beyond 12 in a day and beyond eight on the seventh consecutive day of work in a workweek. So, if you’re working more than these hours and not receiving overtime pay, your rights are being infringed upon.
Making Ends Meet: The Reality of a $16 Hourly Wage
The Santa Clarita Minimum wage of $16 sounds like a step forward. But what does it really mean for your annual earnings and standard of living?
Here’s the math: If you’re working full time, meaning 40 hours a week for 52 weeks a year (no vacations, remember), you’ll earn $33,280 annually before taxes. On paper, that might seem like a fair sum. But let’s apply some context.
California has one of the highest costs of living in the United States. The state’s housing costs are sky high, with the median home price over $800,000. Rent isn’t much better, with the average apartment going for over $2000 a month. Then there’s food, transportation, healthcare, and other essentials, which all tend to be more expensive than the national average.
So, where does a $33,280 annual income place you? Sadly, below the poverty line. According to the California Poverty Measure, a more comprehensive tool than the federal poverty line, a family of four in LA County needs an income of just under $40,000 just to cover basic expenses. And that’s assuming no major unexpected costs come up, like a car repair or medical bill.
The reality is stark: A $16 hourly wage can leave you scrambling to make ends meet. You might find yourself choosing between paying the rent and buying groceries, or skipping a doctor’s appointment to save on co-pays. It’s a precarious balancing act, and one missed step can lead to financial disaster.
This isn’t about painting a grim picture. It’s about facing the facts and fighting for fair compensation. If you’re working full time, you deserve a wage that not only keeps you above the poverty line but allows for a decent standard of living. Anything less isn’t progress—it’s perpetuating a problem.
Your Rights and Recourses
California law provides robust protections for workers, and if your employer isn’t paying you appropriately, you have options. For starters, you can file a wage claim with the California Labor Commissioner’s Office. This office serves as an advocate for workers and has the power to investigate employers and enforce labor laws. If your claim is validated, they can recover your unpaid wages plus penalties from your employer.
Alternatively, you can take legal action. California law allows workers to sue their employers for unpaid wages, and if you win, you could potentially recover not only your unpaid wages but also interest and attorney’s fees. It’s not a step to be taken lightly, but it’s there if you need it.
It’s important to remember that retaliation is also illegal. Your employer cannot fire, demote, or otherwise punish you for asserting your rights. This includes reducing your hours, changing your shift, or moving you to a less desirable location. If they do those things, that’s another violation you can add to your claim or lawsuit.
Knowing your rights is the first step to asserting them. The second step is not being afraid to seek help. Whether it’s consulting with a lawyer, reaching out to a union representative, or simply talking to a trusted mentor, don’t hesitate to lean on others for support.
If your employer isn’t paying you the minimum wage or overtime you’re entitled to, you have the right—and the means—to demand fairness. Stand up for your rights. Seek help if you need it.
Your Wage, Your Rights
The Santa Clarita minimum wage increase to $16 an hour in 2024 is a step in the right direction but it’s not quite enough for a comfortable life in California. If you’re an exempt employee earning less than $66,560 annually, you should be classified as nonexempt and entitled to overtime pay. Working more than eight hours a day or 40 hours a week without receiving overtime pay is not just unfair, it’s illegal.
If you find your paycheck falling short of these standards, it’s time to take action. You have rights. You deserve fair pay for your hard work. And if your employer isn’t playing by the rules, they need to be held accountable.
That’s where PARRIS Law Firm steps in. Our team of seasoned employment law attorneys is ready to help you fight for what you’re owed. We can guide you through the process of filing a wage claim or even taking your employer to court if necessary.
So, if you’re tired of struggling to make ends meet on a wage that’s less than you deserve, reach out. Contact PARRIS Law Firm for a free consultation today. Your rights are worth fighting for, and we’re ready to help you win the battle.
Navigating California's 2024 Minimum Wage Hike As An Employer
As a California employer, navigating the labyrinth of labor laws can be complex, especially with the state’s minimum wage. In 2024, California will experience another increase in its minimum wage up to $16.00 per hour, a change that could significantly impact your business operations. Understanding these changes is not just important—it’s critical. A thorough comprehension of the evolving wage landscape will allow you to make informed decisions, ensure compliance with the law, and maintain a sustainable business model.
California’s 2024 Minimum Wage Increase
As of 2023, California’s minimum wage currently stands at $15.50 per hour for all employers, with some cities and counties adopting a higher minimum wage. This rate is not static and is subject to changes as dictated by the state’s labor laws.
Come January 1, 2024, employers across the Golden State will need to adjust their payrolls once again as the state’s minimum wage will increase to $16.00 per hour. This adjustment marks a significant milestone in the state’s ongoing efforts to provide fair wages to its workforce.
The decision to raise the minimum wage is rooted in legislation passed by the California legislature. The intent behind these increases is to ensure that workers earn a living wage that keeps pace with the cost of living in one of the nation’s most expensive states. It’s part of a broader commitment to economic justice and reducing income inequality.
Looking ahead, it’s unclear whether and when the state will increase the minimum wage again. In November 2024, voters will consider a proposition that would raise the state’s minimum wage to $18.00 per hour in 2025 for larger employers and in 2026 for small employers. Given the state’s history and commitment to ensuring fair wages, it would not be surprising if additional increases are on the horizon.
For tipped workers, California does not permit the use of tip credits. Tip credits are a practice in some states that allows employers to count a portion of their employees’ tips towards the minimum wage requirement. In effect, the employer keeps that portion of the tip. But in California, employees must be paid at least the full state minimum wage before tips. The impact of this policy is significant—it ensures that tipped employees in California, such as restaurant servers or bartenders, are guaranteed the same minimum wage as non-tipped employees, providing a more stable income base despite the often unpredictable nature of tips.
Minimum Wage by City and Municipality
While California sets the baseline for minimum wage, it’s noteworthy that several cities and municipalities have taken it upon themselves to set higher rates. These localities have recognized the unique economic conditions within their borders and adjusted their minimum wages accordingly.
Here is a complete list of all cities and municipalities in California that have a minimum wage higher than the state. Please note that some of these wages will not change in 2024, or if they are changing, no announcement has been made by the time of publication of this article.
Location2023 Minimum Wage2024 Minimum WageAlameda$16.52No announcementBelmont$16.75$17.35Berkeley$18.07No announcementBurlingame$16.47$17.03Cupertino$17.20No announcementDaly City$16.07No announcementEast Palo Alto$16.50$17.10El Cerrito$17.35$17.92Emeryville$18.67No announcementFoster City$16.50No announcementFremont$16.80No announcementHalf Moon Bay$16.45No announcementHayward$16.34$16.90Los Altos$17.20No announcementLos Angeles (City)$16.78No announcementLos Angeles County (unincorporated)$16.90No announcementMalibu$16.90No announcementMenlo Park$16.20$16.70Milpitas$17.20No announcementMountain View$18.15$18.75Novato$16.07$16.86Oakland$15.97$16.00Palo Alto$17.25$17.80Pasadena$16.93No announcementPetaluma$17.06$17.45Redwood City$17.00$17.70Richmond$16.17No announcementSan Carlos$16.32$16.87San Diego$16.30$16.85San Francisco$18.07No announcementSan Jose$17.00$17.55San Mateo$16.75$17.35San Mateo County (unincorporated)$16.50$17.06Santa Clara$17.20$17.75Santa Monica$16.90No announcementSanta Rosa$17.06$17.45Sonoma$17.00No announcementSouth San Francisco$16.70No announcementSunnyvale$17.95$18.55West Hollywood$19.08No announcement
This patchwork of wage rates can be confusing for employers, particularly those operating in multiple localities. As a rule of thumb, employers must always pay the highest applicable minimum wage, whether it’s the federal, state, or local rate. Therefore, if a city or county has a higher minimum wage than the state, employers operating in that locality must abide by the local rate.
The rationale behind these differing rates across the state is largely tied to cost-of-living variances. Cities like San Francisco and Los Angeles are known for their high living costs, hence the justification for higher minimum wages. The goal is to ensure that workers in these areas can afford basic necessities such as housing, food, and healthcare.
However, these higher wages can also put pressure on local businesses, especially small ones, as they strive to balance fair pay with sustainable operations. It’s a delicate balancing act that continues to shape discussions around minimum wage laws in California.
Salary Threshold for Exempt Employees
Exempt employees are those who are exempt from certain provisions of the Fair Labor Standards Act (FLSA) and California Labor Code, particularly those related to overtime pay and meal and rest breaks. To qualify as exempt, an employee must generally meet specific criteria regarding their job duties and be paid above a specific salary threshold.
As of 2023, in California, the salary threshold for exempt employees is $64,480. This means that to qualify as an exempt employee, an individual must earn at least this amount annually and meet the applicable duties test.
However, come January 1, 2024, this threshold will increase to $66,560. This increase in the salary threshold for exempt employees has significant implications for employers. It means that some employees who were previously classified as exempt may no longer meet the salary criterion for exemption in 2024. If that’s the case, employers may need to reclassify these employees as non-exempt, which would make them eligible for overtime pay, meal periods, rest breaks, and other protections under the Labor Code. Alternatively, employers could choose to raise the salaries of these employees to meet the new threshold, maintaining their exempt status.
Impact on Employers and Remote Workers
The increase in California’s minimum wage has notable implications for all employers, including those employing remote workers within the state. For businesses, higher wages can mean increased labor costs, which could impact profitability. Employers may need to reassess their budgets, potentially adjusting pricing strategies or reallocating resources to accommodate these changes.
Specifically for employers with remote workers in California, it’s crucial to understand that these employees are still protected by California’s labor laws, including its minimum wage laws. This means that even if your business is not physically located in California, but you have remote hourly employees working in the state, they must be paid at least the applicable California minimum wage.
When determining which minimum wage laws to follow, the rule is to apply the highest rate that applies to the employee. So, if a municipality in California where your remote worker resides has a higher minimum wage than the state, you would need to pay at least that local rate.
California’s labor laws are often more protective than federal laws, so non-California-based employers with remote workers in the state must adhere to these standards. This includes not only minimum wage laws but also overtime, meal and rest breaks, and leave entitlements, among others.
Preparing for the minimum wage increase requires strategic planning and proactive measures. Here are some strategies employers can adopt to effectively manage these changes:
- Budget Review: Reassess your current budget to accommodate increased labor costs. This may involve adjusting pricing strategies, reducing non-essential expenses, or even exploring automation options for certain tasks.
- Workforce Planning: Consider the potential need for reclassification of employees who no longer meet the salary threshold for exempt status. If raising salaries is not feasible, prepare to manage increased overtime costs for newly non-exempt workers.
- Policy Updates: Ensure your company policies reflect the new wage rates and that these are communicated clearly to all employees. This includes remote workers who are also covered by California’s labor laws.
- Legal Consultation: Engage a labor law expert to help navigate these changes. They can provide tailored advice to ensure your business remains compliant while minimizing disruption to operations.
Failing to implement these changes correctly can result in significant penalties. Taking proactive steps now can help mitigate potential impacts on your business operations.
Navigating the Wage Waters: Final Thoughts
Understanding California’s minimum wage laws, including the rising salary thresholds for exempt employees and the impact on remote workers, is crucial for all employers. As these changes loom, proactive management and strategic planning are your best defense. Stay informed, reassess your policies, and consider seeking legal guidance to navigate these waters smoothly.
New Year, New Laws: Understanding the New California Employment Laws 2024
As we usher in 2024, it’s crucial to stay informed about the new California employment laws that could significantly impact our daily lives and work environments. From an increase in the minimum wage to important changes regarding remote work, pay equity, and even state holidays—the landscape of California law is evolving. As California continues to lead in progressive legislation, keeping abreast of these changes is more than just a legal necessity; it’s a tool for empowerment and fairness in our rapidly changing world.
Expansion of Paid Sick Leave
In 2024, California sees a significant expansion in its paid sick leave law. Previously, employers were required to provide at least three days or 24 hours of paid sick leave per year. However, under the new law, this minimum rises to five days or 40 hours per year. Notably, this applies to all employees who work in California for the same employer for at least 30 days within a year.
The law aims to foster healthier workplaces by encouraging sick employees to stay home without fear of lost wages. This change underscores California’s commitment to worker rights and sets a progressive precedent for other states to follow. Employers should update their policies accordingly to ensure compliance with this expanded obligation.
CalWARN Notice Requirements
The California Worker Adjustment and Retraining Notification (CalWARN) Act currently mandates that businesses with 75 or more employees provide at least 60 days advance notice before mass layoffs, relocations, or terminations. However, in 2024, the notice requirement increases to 75 days. The law also revises a covered business to mean a single location with 75 or more workers. Importantly, employers are prohibited from using severance agreements to waive an employee’s right under this law.
Rights of Remote Workers
With many employers looking to have employees return to offices, California is providing some protections for workers. Beginning in 2024, an employer must provide a worker with at least 30 calendar days’ notice that they are requiring a remote or work-from-home worker to come work in the office. The notice must be provided to the employee in writing, and it must provide information about the employee’s right to remote work as a reasonable accommodation for a disability.
Wage Theft
Wage theft, the denial of wages or benefits rightfully owed to an employee, is a pervasive issue in the American workforce. To combat this, a new California law significantly increases penalties for employers found guilty of wage theft, including higher fines and potential jail time. It also expands the authority to receive, investigate, and hear employee complaints to public prosecutors, beyond recovery available under Private Attorneys General Act (PAGA) lawsuits.
Achieving Pay Equity
Pay equity remains a significant issue in California, as it does nationwide. A new law aims to address this by enhancing transparency around pay data. The existing laws require employers to report pay data categorized by sex, race, and ethnicity. The new law expands on these requirements, mandating more comprehensive reporting of wage information, including job categories, wage ranges, and the number of employees within these ranges. This increased transparency is intended to illuminate any pay disparities, pressuring employers to take corrective action.
Increase in Minimum Wage
In 2024, California sees a significant increase in the minimum wage to $16.00 per hour. This rise is a result of a law passed in 2016 that ties the state’s minimum wage to inflation, ensuring that the lowest-paid workers are not left behind as the cost of living increases. This progressive adjustment not only provides an immediate pay raise for those on minimum wage but also sets a new standard for employers across the state. As a result, this wage increase helps to reduce income inequality and promotes economic fairness. It’s a significant step towards ensuring that all Californians can afford a decent standard of living.
Protections for Prior Marijuana Use
A new law expands protections for job applicants and employees who use marijuana. This law makes it unlawful for an employer to request or demand information about an applicant’s prior use of marijuana. Even if an employer receives information about an applicant’s prior use through a criminal history check, the employer may not use that information in their hiring decision.
Health Care Workers Get a Raise
Senate Bill 525 proposes a significant wage increase for all healthcare professionals employed at eligible healthcare institutions in California. Starting from June 1, 2024, the legislation mandates a rise in the minimum wage for healthcare workers to $21 per hour, which will further increase to $25 per hour from June 1, 2025. For those who receive a salary, their pay should not fall below 150 percent of this new healthcare worker minimum wage or 200% of the applicable minimum wage, whichever is greater. The law applies to all tasks performed within any qualifying healthcare facility, as well as any paid healthcare services carried out on behalf of any entity that owns, manages, or operates such a facility, regardless of where the work is done.
Paid Family Leave Benefits Expansion
The eligibility criteria for receiving Paid Family Leave benefits is set to expand, including employees taking leave to care for a “designated person.” The Legislature had previously broadened California’s leave laws last year to include leave for a “designated person.” This year, it seeks to extend this trend to the state’s Paid Family Leave insurance program. Specifically, AB 518 redefines a “family member,” enabling employees to qualify for wage replacement benefits when they take leave to care for a seriously ill “designated person.” This term refers to any individual related by blood or someone who shares a relationship equivalent to a family bond with the employee. Employees will specify their designated person when submitting a benefits claim.
Laid-Off Employees Rehire Rights
A new proposal aims to expand reemployment rights for employees in the hospitality and business service provider sectors who lost their jobs due to the pandemic. This includes those working in hotels, private clubs, event centers, airports, and building service providers. The current law mandates employers to offer job opportunities to eligible former employees as they arise, provided these employees were: (1) employed for at least six months before January 1, 2020, and (2) lost their jobs due to pandemic-related reasons.
SB 723 seeks to widen the scope of covered employees by modifying the first criterion to include any employee who has been employed for a minimum of six months at any time and was laid off on or after March 4, 2020. While the second criterion remains unchanged, SB 723 notably introduces a presumption that terminations due to a lack of business, workforce reduction, or other economic, nondisciplinary reasons are associated with the COVID-19 pandemic. The onus is on the employer to establish otherwise by a preponderance of the evidence. Finally, SB 723 proposes to extend the expiry date of the current law by one year to December 31, 2025.
Reproductive Loss Leave
If enacted, a new law would grant employees a five-day leave for issues related to reproduction or adoption losses. It would be illegal for employers to deny an employee’s request for up to five days of leave following an event of reproductive loss, which could include miscarriage, unsuccessful assisted reproduction such as IVF, or a failed adoption. The employee would need to utilize this leave within three months of the event, and the total duration of leave should not surpass 20 days in a single year. While the reproductive loss leave may be unpaid, employees have the option to use their other leave balances like accrued and available paid sick leave.
Noncompete Agreements
Beginning January 1, 2024, a new law confirms it is illegal for employers to require employees to sign post-employment noncompete agreements or clauses.
The newly signed law explicitly forbids employers from incorporating post-employment noncompete clauses in employment contracts or obliging employees to agree to post-employment noncompete arrangements. By February 14, 2024, employers are required to give individualized written notices to all current and certain former employees that any post-employment noncompete clause in their employment agreement and/or any post-employment noncompete agreement with the employer is now void.
Policies and Procedures Required for Workplace Violence Protection
On September 30, 2023, California introduced the first-ever general industry workplace violence prevention safety standards in the U.S. These regulations apply to almost all employers in the state with minimal exceptions. As per the new Labor Code Section 6401.9, employers must devise and implement a workplace violence prevention plan by July 1, 2024.
The plan should include:
- Assigning individuals responsible for the plan.
- Developing procedures to actively involve employees in formulating and executing the plan.
- Methods for coordinating the plan with other employers, if relevant.
- Procedures for addressing and responding to reports of workplace violence without retaliation against the reporter.
- Communication methods about workplace violence, such as reporting violent incidents, alerting employees about emergencies, and seeking help from the assigned staff or law enforcement.
- Processes to identify, evaluate, and correct workplace violence hazards.
- Post-incident response and investigation procedures.
- Reviewing and revising the plan as necessary, which includes active involvement of employees.
- Initial and annual training about the plan.
Employers are also required to maintain specific records for a minimum of five years and present them to Cal/OSHA upon request. These records include hazard identification, evaluation and correction records, training records, a log of every violent incident, and records of incident investigations.
