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Something New, Something Old, Something Borrowed (Pending) California Employer Law updates.

As we launch into the second month of the year, we thought we’d give you an update on what California is saying for the business owners in 2022. As expected, some laws began as of January 1st, but there was also one surprise that was announced after the new year. If you are curious to know more about the items below or need help with anything, please reach out to us. This is why we exist.

• Minimum wage increases but a trend of raises may be on the way. Most of you are well aware that minimum wage has gone up beginning with the start of 2022. Businesses larger than 25 employees must pay at least $15/hour and those less than must pay $14/hour. There are also different minimum wage laws for certain counties and cities. Double check your area to make sure you don’t have to pay a different amount. A recent study shows that 72% of small business in California are experiencing staffing shortages. As waves of employees resign, business owners are trying to figure out how to hire and keep workers. Many are considering offering raises to their employees and hiring at a much better rate than minimum wage. If this is a struggle for you please let us help with strategies on recruitment or holding on to staff.

• Surprise! Covid Sick Pay most likely to return. Near the end of January, the Governor and lawmakers came to an agreement to re-establish 2 weeks of sick pay that would allow employees time to recover or care for a loved one recovering from Covid. In September 2021, Governor Newsome decided not to extend the Covid Sick Pay for the state. When this law passes, it will be retroactive to January 1, 2022 and last through September 30th.

• Cal Savers delivering fines to those who failed to comply. More than 650 businesses in the state did no register for the states IRA program or do not have proof of providing their own retirement plan to employees. This deadline came out in waves beginning in June of 2020. Companies larger than 100 employees were to register by then. The fine is set for $250/employees and if businesses still do not comply, a second fine of $500/employees will be given. In June of 2021, employees with 50 or more employees were to register for Cal Savers. But the biggest deadline is this June. All employers with 5 or more employees must be registered with the state’s IRA program or find a compliant retirement plan. Our retirement gurus have options that are better and less expensive than what the state offers.

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