|Feb. 21, 2019 | www.fisherphillips.com|
The minimum wage is here to stay, but it has become more complicated to apply to some classes of employees. Until this century, the issue of whether employees are adequately paid at the applicable minimum wage in California generally followed federal law. It consisted of a simple formula requiring the employer to divide total applicable compensation for (or attributable to) the workweek by all hours worked during the workweek, then making sure the resulting average rate of pay satisfies at least the applicable minimum wage.
California leads the nation in micromanaging pay statements, including (but not limited to) exposing an employer’s officers or agents who intentionally violate the law to criminal prosecution and fines up to $1,000. The California legislature, as well as state and federal courts charged with interpreting the law, continue to address the fairness of these draconian measures and what the law actually requires.
Location, Location, Location: What Factors Determine Whether California Law Applies To Non-Residents?
In deciding whether California’s overtime laws apply to non-resident employees who spend full days or weeks working in the state, the California Supreme Court has previously held the state’s labor code applies to overtime work “performed in California.” By focusing on the location of the work performed, the Supreme Court signaled the state’s strong interest in enforcing its overtime laws for work performed within its borders without regard to either party’s residence as controlling factors.