Federal and State Wage Increases


Federal and State Wage Increases

Federal and State Wage Increases

Posted by on Jan 2, 2018 in Blog News

Federal Contractor Minimum Wage Increase

The minimum wage for federal contractors will increase to $10.35 per hour as of January 1, 2018. The wage requirement applies to new and replacement contracts (solicited on or after January 1, 2015) with employers covered by the Service Contract Act or any employer who handles concessions and services in connection with federal property or lands. We recommend that employers review the pay rates of their employees and plan any changes necessary to comply with the rate increase.


California New Year’s Update

Minimum Wage Increases

On January 1, 2018, California’s minimum wage for employers with 26 or more employees will increase to $11.00 per hour. The minimum wage for employers with 25 or fewer employees will increase to $10.50 per hour.

On January 1, 2018, the following municipal minimum wage increases will also take effect:
Cupertino:   $13.50
El Cerrito:   $13.60
Los Altos:   $13.50
Milpitas:   $12.00
Mountain View: $15.00
Oakland:   $13.23
Palo Alto:   $13.50
Richmond:   $13.41
San Jose:   $13.50
San Mateo:   $13.50
Santa Clara:   $13.00
Sunnyvale:   $15.00

We recommend that you review the pay rates of your employees to ensure compliance with the new minimum wages.

Exempt Employee Minimum Salary Increase

Beginning January 1, 2018, the minimum salary for exempt employees of employers with 26 or more employees will increase to $45,760 per year. For employers with 25 or fewer employees, it will increase to $43,680 per year.
California Bans the Box
Beginning January 1, 2018, it will be illegal for any employer with five or more employees to include on any application for employment any question that asks about an applicant’s conviction history. Additionally, it will be illegal to inquire into or consider the conviction history of an applicant until that applicant has received a conditional offer of employment. It will also be illegal to consider, distribute, or disseminate information related to arrests, diversions, and convictions.

In addition to the above restrictions, an employer who ultimately acquires an applicant’s criminal history and intends to deny them the job even in part based on that information, must conduct an individual assessment. The assessment should determine whether the applicant’s conviction history has a direct and adverse relationship with specific duties of the job as well as the following: the nature and gravity of the offense or conduct; the time that has passed since the offense or conduct and completion of the sentence; and the nature of the job.

If the employer decides that the applicant’s conviction history disqualifies them from the job, they must notify the applicant in writing and allow them five days to respond; this notification and process must meet certain requirements. If, after the applicant has had a chance to respond, the employer still decides to not go forward with hiring the individual, the employer must send a final written notice with specific pieces of information. For more details on these notices and procedures, use the search bar on the HR Support Center and type in California ban-the-box and select the Arrest and Conviction Records page.

Transgender Rights in the Workplace

Beginning January 1, 2018, employers with five or more employees are required to post a notice created by the Department of Fair Employment and Housing (DFEH) titled “Transgender Rights in the Workplace.” The notice must be posted in a prominent and accessible location in the workplace. The notice can be downloaded here.

Additionally, employers who are required to provide sexual harassment training for supervisors (those with 50 or more employees) must incorporate information about harassment based on gender identity, gender expression, and sexual orientation.