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New Laws and Changes Go into Effect in 2021

January 05, 2021
workforce development
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On January 1, 2021, the California Minimum Wage Rate will increase from $13 to $14 per hour. This increase applies to every agricultural employer who employs 26 or more employees.

With respect to agricultural employers who employ 25 or fewer employees, the employee must be paid an hourly wage rate of not less than $13 per hour. These new rates apply to a fixed hourly rate for job positions, including piece-rate or other methods of calculation.

Overtime Hours are Changed Effective January 1, 2021
Employers with more than 25 employees will be required to pay overtime pay for any work performed above 8.5 hours daily or 45 hours per work week. Time worked in excess of the above time periods, and for the first 8 hours on the 7th consecutive day of work, must be compensated at 1½ times the employee’s regular rate of pay, with double overtime pay for all hours worked in excess of 8 hours on the consecutive workday.

For employers of 25 or fewer employees, these employers may continue to employ workers based upon a 10-hour workday. Hours in excess of 10 hours in any one workday or the first 8 hours of work performed on the 7th consecutive workday in the same work week must be compensated at no less than 1½ times the employee’s regular rate of pay for such hours. Additionally, any hours in excess of 8 hours on the 7th consecutive workday must be paid at 2 times the employee’s regular rate of pay.

New Rate of Pay for Managerial and Supervisorial Employees
Effective January 1, 2021, supervisors, bona fide foremen and management employees must be paid a salary of not less than $58,240 for the calendar year. The new salary rate is based upon 2 times the applicable minimum wage rate ($28) multiplied by a 40-hour work week. This new salary rate can be expressed in a number of ways. On an annual basis, the salary would be increased to $58,240. This translates to a monthly salary of $4,853.33 or $1,120 per week. This new salary rate applies to employers with more than 25 employees. For employers with fewer than 25 employees, the new salary rate will be $54,080. This translates to $4,507 monthly or $1,040 weekly.

State Paid Sick Leave Benefit to be Adjusted
California’s paid sick leave law, more commonly referred to as Healthy Workplaces, Healthy Families Act of 2014, requires that employees are provided with a paid sick leave benefit of up to 25.5 hours or 8.5 hours per day. The rate only applies to regular hours that were not worked. This benefit may be paid at the outset of a calendar or 12-month period or based upon an accrual basis, as set forth in Labor Code Section 246.

AB 685 Becomes Effective on January 1, 2021
AB 685, one of several COVID-19-related bills passed by the California Legislature and signed into law, goes into effect on January 1, 2021. This new law requires employers to notify employees who have been exposed to COVID-19 in the workplace, as well as report COVID-19 illnesses to their local health department (LHO) and workers’ compensation carrier.

Minimum Wage Law:
https://link.calstrawberry.com/bju

Overtime Law:
https://link.calstrawberry.com/cfv

AB 685 FAQ:
https://link.calstrawberry.com/21o

Contact: Mark Martinez
Email: mmartinez@calstrawberry.org

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