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Employers

How Minimum Wage Affects Exempt Classifications

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It’s not too early to plan ahead for the impact of State mandated minimum wage increases. The California minimum wage is set by law for automatic increases each year until it hits $15 per hour. The schedule of increases depends on the size of your business. Large businesses with 26 or more employees will reach $15 per hour in 2022. Small businesses with 25 or fewer employees will have until 2023 to reach the $15 per hour rate.

Dates

Employers With 26 or More Employees

Employers With 25 or Fewer Employees

1/1/19

$12/hour

$11/hour

1/1/20

$13/hour

$12/hour

1/1/21

$14/hour

$13/hour

1/1/22

$15/hour

$14/hour

1/1/23

$15/hour*

$15/hour*

*Once the minimum wage reaches $15 per hour for all businesses, wages could then be increased each year up to 3.5 percent (rounded to the nearest 10 cents) for inflation as measured by the national Consumer Price Index.

For employees to be classified as exempt (from overtime requirements) certain criteria must be met. This month we will deal with the requirement that exempt employees must earn a minimum monthly salary. Exempt employees must earn a monthly salary equivalent to no less than two times the state minimum wage for full-time employment.  However, be careful classifying your employees as exempt based on wage levels only.  There are strict guidelines published and you must adhere to them.

Using the above formula, it is easy to calculate the salary requirements for years 2020, 21, 22 and 23. Our next article will cover the other conditions that are required for an employee to be classified as exempt.

Adapting To A Candidate’s Market

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 “Insanity is doing the same thing, over and over again, but expecting different results.” 
 
It’s a candidate’s market now and, in every role and at every level, qualified candidates are at a premium.

 

Going crazy because you can’t find qualified candidates?

Maybe it’s time to review your processes

  • Because the economy has been so tough you have kept your wages fairly static

Salary levels are finally on the rise and you need to be competitive

Your offer should be an improvement over what the candidate is currently making

  • You’re not sure what you need and are changing the requirements of the position as you interview

One of things we hear often from candidates is that they are looking for a stable company with clear expectations and a chaotic interview process does not communicate well

  • Your process gives you a relatively short time for the initial interview

Understanding how the candidate’s expectations match up with your plans ensures a better match so take the time to get to know the candidate.

  • You have a personality test that you use first to screen out candidates

Personality is, of course, the main determinant of success in a job but not all jobs in a company require the same personality traits and other factors also play important roles-it’s the whole package!

  • You don’t have time to respond to candidates

Another big complaint among job seekers is either no response or delayed responses that show the candidates a lack of respect-not a great way to start a relationship!

  • You have a long, well thought out interview process that takes weeks

Often, when you take a long time to hire, the top candidates get hired elsewhere and you are left with the second tier candidates

  • You use multiple recruiters to help you fill your jobs

When you use multiple recruiters, you put them in a “horse race” that often results in a deluge of inferior candidates because each recruiter needs to be the first to get you resumes not the one who gets you the best people

  • You reject resumes of “job hoppers” and make snap decisions based on resumes

Once again, it’s important to look at the whole picture.  Resumes can be incomplete, both because of what is not on them and because there is no explanation for what is on them.

Denham Resources has been helping companies like yours since 1970 and we know what specific steps you need to take to ensure that the very best candidates join your organization.

Call us today!

559-222-5284