Employer's Report: Employers Report Post

Posted by Kim Gusman, President & CEO on January 1, 2025

Tags: Employers Report

Happy New Year! I can’t believe it’s already January, 2025! Thank you for allowing CEA to serve your HR needs for the past 87 years. Thank you for trusting us with your questions and allowing us to walk you through the in’s and out’s of California employment laws. It’s a privilege to be able to lighten your load and bring you Peace of Mind!

Effective leaders are busy and they need to stay abreast of the new laws impacting their business in the New Year, so I’ve dialed things down to provide you with a Reader’s Digest version of the most far reaching 2025 California employment laws. I’ve also included a to-do list after each law to help you keep your business in compliance and out of court.

Compared to prior years, the good news is that 2025 is a fairly light year when it comes to new employment laws! I’ve highlighted seven laws that impact the majority of businesses in California. When you need or want more information on any of the bills below, just click on the links, give us a call, send us an email, or join us on January 15 for our Encore Labor Law Update webinar.

1. Minimum Wage Increase (SB3). As of January 1, 2025, the minimum wage in California increased from $16 to $16.50 per hour for all hourly workers. Salaried employees now need to earn at least $68,640 in order to remain exempt from wage and hour laws, such as breaks, meal periods and overtime.

TO DO: Put up New Poster, Increase wages as needed, and give updated Wage Theft Notices to hourly employees.

2. Ban on Captive Audience Meetings (SB399)-CA Worker Freedom from Employer Intimidation Act. This law prohibits employers from discharging/retaliating/or taking adverse action against an employee if they don’t want to attend a work meeting where the employer gives their opinion on political, religious or union matters. Employees who refuse to attend have a right to compensation. Exceptions exist for religious organizations & education institutions and political organizations.

TO DO: Train your managers-no more captive audience meetings!

3. Whistleblowers are Protected Updated Poster. (AB2299) The Labor Commissioner’s prior posting was a “sample” which didn’t guarantee compliance with posting requirements. The new poster guarantees posting compliance. This whistleblower notice must be written in a font larger than 14 point and contain the whistleblower hotline’s telephone number.

TO DO: Update Your All in One Poster or other job postings

4. Workers Compensation Poster (AB 1780). Another Poster Update. This new updated notice informs employees that are injured at work that they have the right to consult an attorney and that attorney fees will be taken out of any recovery.

TO DO: Update Your All in One Poster or other job postings

5. Drivers License Discrimination in Job Listings (SB1100). California employers may no longer require job applicants to have a valid drivers license when posting a job or on a job application, unless driving is a function of the job and other modes of transportation are not comparable in terms of travel time and cost.

TO DO: Review your job applications and job postings and remove DL requirements.

6. Crime Victims Leave (AB2499). Leave laws and rights have been expanded for victims of violent acts. There is a new definition of a crime victim. All employers must give employees a notice (which is still being created by CA Civil Rights Department) in 4 circumstances: when hired, annually, upon request, and when there is a qualifying circumstance. Reasonable accommodations to protect employee safety at work will now be required when the employee or their family member is the victim. And, if your company has more than 25 employees, employees may take leave for expanded reasons when the employee or their family member is a victim. Employees may use their Paid Sick Leave for expanded purposes.

TO DO: Review your employee handbook and leave law policies-update as needed.

7. Written Contracts for “Freelance” Independent Contractors (IC) (SB988).This law requires any person or company who hires a “freelancer” for specified professional services as an IC to draw up a written contract if the services are equal to or greater than $250. The company must give a copy to the IC and retain a copy for four (4) years.

TO DO: Review your IC policies-Create written contracts if needed-make sure your IC’s are properly classified.

That’s it in a nutshell!  For more information, please join us on January 15 for our Encore Labor Law Update webinar. Members can also contact us for free phone support at 800-399-5331 or email us at: ceainfo@employers.org for a fast and accurate reply. Soon we will have a Live Chat feature for you too!

From all of us at CEA-Here’s Wishing You and Yours a Happy and Prosperous New Year! Let us help you Thrive in 2025!

Posted by California Employers Association on December 1, 2024

Tags: Employers Report

CEA Membership Highlight: On-Demand Training 

Looking to expand your knowledge in 2025? Start 2025 of strong with a comprehensive training plan. Through our on site, virtual, or on-demand training options, CEA can help you level up your skill set. CEA Members have free access to over 100 on-demand, online courses at no cost via CEA University. These courses allow employees to learn at their own pace and allow you to leave the training, and pick it up again where you left off.

Posted by Giuliana Gabriel, J.D., Vice President of Human Resources on December 1, 2024

Tags: Employers Report

Inevitably, at each year’s end, California employers must budget for increasing minimum wage and salary requirements taking effect on January 1st. Because the last few years have been marked by persistent inflation, this has led to wage increases and “growing pains” for many small and mid-sized businesses.

Now is the time to plan ahead: assess your budget for the upcoming year, consider whether any personnel restructuring is needed, and make sure your organization is staying financial healthy.

2025 Minimum Wage and Exempt Salaries

California’s minimum wage for non-exempt employees will increase to $16.50 per hour for all employers, regardless of size, starting January 1, 2025.  This means that overtime pay (at time and a half) will be $24.75/hour.

This new minimum wage also impacts your exempt, salaried employees. The minimum exempt salary is bumped up to $68,640 annually for 2025.  The “white collar” exemptions (administrative, executive, and professional) for exempt employees, is always two times the State’s minimum wage (times 2080 hours/year). Remember, to be properly classified as “exempt,” employees must satisfy both a duties test and minimum salary requirement. CEA members can access our Exempt Analysis Worksheets for guidance on properly classifying employees, on our HR Forms page.

Computer Professionals

For those who are properly classified as exempt “computer professionals,” the minimum salary amounts are increasing for 2025 as follows:

• $56.97/hour
• $9,888.12/month
• $118,657.43/annually

Physicians/Surgeons

For those properly classified as an exempt “licensed physician or surgeon,” the minimum salary amount is increasing for 2025 as follows:

• $103.75/hour

Industry-Specific Wages

Additionally, certain industries are now subject to their own minimum wage and salary requirements. For fast food workers at limited-service restaurants that are part of chains with over 60 locations nationally, they must receive a minimum wage of $20/hour, and exempt employees are entitled to an annual minimum salary of $83,200.

For healthcare workers, new minimum wage requirements apply and vary based on the type of health care facility. These minimum wages became effective on October 16, 2024, and range from $18/hour to $23/hour, with set future increases. To be properly classified as exempt, covered health care workers must earn 1.5 times their applicable health care minimum wage, or 2 times California’s minimum wage, whichever is greater.

Local Minimum Wages Ordinances

Many jurisdictions in California have enacted minimum wage ordinances that require employer to pay higher minimum wages than the State requires, for work performed within their geographical boundaries. Some require a minimum amount of hours (e.g., 2 hours per week) before this rule will apply. Remember to check local minimum wages when you have remote non-exempt workers and when you send workers to various job sites in different cities or counties.

Depending on the city or county, most local minimum wages increase every year on either January 1 and/or July 1. CEA members can access all current local minimum wage requirements in our Local Minimum Wage Fact Sheet on our HR Forms page. Once all of the local increases are announced for January 1, 2025, we will update our Fact Sheet (so be sure to download the 2025 version in January)!

Budgeting Tips

When budgeting for 2025, employers should calculate how increases will impact their bottom line. Some questions to consider include:

• Should we reclassify any employees from exempt to non-exempt based on the new minimum salary?
• Do we need to change our practices in permitting overtime, based on the new overtime rates?
• Should we raise our prices on our products or services to account for the wage increases?
• Do we need to consider any furloughs or layoffs to stay financially healthy?

See our Layoffs, Furloughs and More Fact Sheet here for important considerations.

At CEA, we are experienced in “getting creative” when it comes to uncovering HR solutions for your business. CEA members can call us on our HR support line for additional guidance, at 800.399.5331.

Posted by Virginia Young, J.D., HR Compliance Director on December 1, 2024

Tags: Employers Report

While California law has long protected employees who may need time off to attend court for a variety of reasons, including time off for jury or witness duty, or when the employee is a victim of a crime, January 1, 2025 will expand employee rights further, based on Assembly Bill 2499.

There are several moving parts to this new bill and employers will need to ensure compliance with their handbook policies. CEA has a number of options to ensure your employee handbook is up to date – learn more here.

Key Changes of AB 2499:

• New definition of a crime victim: Defined as “an individual against whom a ‘qualifying act of violence’ has been committed. ” A “qualifying act of violence” includes domestic violence, sexual assault and stalking, as well as causing bodily injury or death, exhibiting, drawing, brandishing or using a firearm or other dangerous weapon, or using or making threats of force to cause physical injury or death.
• Reasonable Accommodations (Family Members): Employers have an obligation to make reasonable accommodations for an employee’s safety at work when the employee is the victim or their family member is a victim of crime. The addition of “family member” is new for 2025 when it comes to accommodation requirements.
• Paid Sick Leave Expansion: Employees may use paid sick leave for crime victim leave, which will now include expanded reasons for employers who have 25 or more employees (see below).
• Brand new notice requirements: Employers must issue written notification of their rights in four instances: to all new employees, to all staff members on an annual basis, upon request, and whenever the employer learns that an employee or their family member has become a victim. (The State will issue a form to comply with this notice requirement by July 1, 2025. Employers are not obligated to provide notice until the State form is posted on the Civil Rights Department’s website.)
• Enforcement: While these laws were previously under the Labor Code, the requirements have been recast under the Fair Employment and Housing Act (FEHA) with enforcement by the Civil Rights Department (CRD). Discharging, discriminating or retaliating against an employee who is a victim, or whose family member is a victim, will be unlawful employment practices under FEHA.

Other Significant Changes Impacting Employers of 25 or More Employees:

• Expanded reasons for which an employee may use leave, including leave when a family member is the victim. Some examples include: to attend certain court proceedings, to receive medical attention, psychological counseling, safety planning, relocation, caring for family members under certain circumstances, and more.
• Employers may limit the total amount of leave taken for these reasons to 12 weeks total and in some instances when the employee’s family member (as opposed to the employee) is the victim, to 10 or five days.

AB 2499 does not change other laws requiring time-off for employees to attend judicial proceedings, or other proceedings where a victim’s right is at issue, involving certain specified crimes (See Labor Code sections 230.2 and 230.5).

How Should you Prepare?

The law takes effect on January 1, 2025, so we’ll help you keep an eye out for the new posting. Once you have it, give the notice to all employees as soon as it is available. Additionally, this a good time to begin reviewing and revising your policies around leaves of absence and employee sick leave rights.

Call us or email us at 800.399.5331 or CEAinfo@employers.org for more information.

Posted by Kim Gusman, President & CEO on December 1, 2024

Tags: Employers Report

Governor Newsom signed dozens of bills, including new notice requirements for whistleblowers and restrictions on employer speech rights, many of which will take effect on January 1, 2025. We’ve highlighted some of the big changes below so you can begin preparing for their implementation date. We also invite you to join our webinar on December 4, 2024, at 10:00 a.m. PST for more details.

Minimum Wage Increase 

SB 3: California Minimum Wage. The State’s minimum wage is increasing to $16.50/hour for all hourly employees.* That means the exempt employee salaries will need to meet the minimum salary increase to $68,640/year.  (This is calculated by taking two times the State minimum wage times 2080 hours in a year.). *Fast Food businesses with 60  or more locations need to continue to pay hourly workers $20.00 per hour or $83,200 for salaried employees. The Health Care Workers minimum wage, which ranges from $18 to $23/hour, took effect on October 16, 2024.

Note: Prop 32 would further increase the minimum wage-to $18.00/hour in 2025 (for businesses with 26 or more employees), and to $17.00/hour in 2025 (for businesses with 25 or fewer employees). On November 19, Associated Press called Prop 32’s narrow defeat. The California Secretary of State has until December 13 to certify the election results.

What employers need to do:

• Budget to comply with new minimum wage (and minimum exempt salary) amounts
• Prepare to update Wage Theft Notices for non-exempt employees as needed
• Expect updates to the required minimum wage workplace posting

Ban on Forced Work Meetings for Religion and Politics

SB 399: Employer Speech Rights. Known as the California Worker Freedom from Employer Intimidation Act, this law prohibits public and private employers from discharging, retaliating, or taking adverse action against an employee (or threatening to do so) if an employee declines to attend or listen to an employer meeting/communication regarding the employer’s opinion on political or religious matters. Employees who refuse to attend would still have a right to be compensated during the meeting. The law includes specified exceptions including for certain religious organizations, political organizations, and educational institutions. “Political matters” means matters relating to elections for political office, political parties, legislation, regulation, and the decision to join or support any political party or political or labor organization. “Religious matters” means matters relating to religious affiliation and practice and the decision to join or support any religious organization or association. Violations may result in a $500 fine, civil action against the employer, and enforcement by the Labor Commissioner.

What employers need to do:

• Ensure supervisors/managers are trained on employee rights/protections concerning politics and religion, particularly near election cycles

Posting Protections for Whistleblowers

AB 2299: Poster Update.  AB2299 mandates the Labor Commissioner to update its “Whistleblowers Are Protected” poster to ensure compliance with all current legal requirements. As of January 1, 2025, employers that post the model notice will be deemed in compliance with the requirement to prominently display the list of employees’ whistleblower rights and responsibilities.

What employers need to do:

• Order a new All In One 2025 Labor Law Poster from CEA, or
• Print out an up-to-date Whistleblower poster to post at your worksite

Modifies Time Off for Victims of Violence

AB 2499: Crime Victims Leave Expansion. AB 2499 creates new reasonable accommodation requirements for employees who are victims (or have family members who are victims) of qualifying violent acts. Victim leave rights are expanded for employers with 25 or more employees, who are required to offer victims (or employees who have family members who are victims) time off for a number of purposes, for up to 12 weeks total. Paid sick leave is also expanded to cover qualifying time off under AB 2499. The bill also includes a new employee notice requirement (still being developed by CRD), which must be provided to employees at hire, annually, upon request, and upon qualifying circumstances.

What employers need to do:

• Ensure employee handbook/leave policies and forms are updated
• Comply with new notice requirements for employees, once notice is developed by CRD

Driver’s License Discrimination in Job Listings

SB 1100: Job Listing and Driver’s Licenses. SB110 prevents employers from requiring an applicant to have a valid driver’s license in a job advertisement, posting, application, etc. unless: (1) the employer reasonably expects driving to be one of the job functions for the position, AND (2) the employer reasonably believes that satisfying the job function using an alternative form of transportation (walking, biking, taxi, etc.) would not be comparable in travel time or cost to the employer.

What employers need to do:

• Evaluate your job advertisements, postings, etc. for compliance

Vacation Time not Required for Paid Family Leave

AB 2123: Paid Family Leave Change. Employers used to be able to require employees to take up to 2 weeks of accrued vacation before using California Paid Family Leave (PFL) benefits through the State. This no longer applies. Now, employers may no longer require employees to use accrued vacation leave before using PFL.

What employers need to do now:

• Update your Paid Family leave policy accordingly

Independent Contractor Protections

SB 988: Contracts for Independent Contractors. Requires the hiring entity to execute a written contract with an independent contractor for certain professional services equal to or greater than $250. The contract must include specified terms, and the hiring entity must provide a copy to the independent contractor and retain the contract for 4 years, among other requirements.

What employers need to do:

• Review policies relating to the hiring and payment of independent contractors
• Revise document retention policies concerning independent contractors
• Ensure that independent contractors are properly classified as such under California law
• Consult legal counsel as needed

Good News!

CEA will review all of these laws in much more detail and take your questions in our 2025 Labor Law Update. Join us for this informative webinar on December 4, 2024, at 10:00 a.m. P.T. Registration is $69 for CEA members and $149 for non-members.

Posted by California Employers Association on December 1, 2024

Tags: Employers Report

Each year, as new employment laws are enacted, updates to labor law posters are almost guaranteed and 2025 is no exception!

California employers are aware that they must display the required federal and state posters in a prominent location at the worksite, and should distribute them to fully remote workers. California employers must also post certain required notices in the language of non-English speaking employees who comprise at least 10% of their workforce. Failure to post the required posters can result in hefty fines.

CEA is ready to fulfill your poster requirements with our all-in-one Labor Law Poster! Displaying a single poster simplifies your compliance obligations. If you haven’t already, order your 2025 Labor Law Poster here. Your receipt is proof of compliance until your poster arrives.

What are the 2025 Updates?

So far, required updates include:

1. The Whistleblower Poster, mandated by AB 2299, requires the Labor Commissioner to update the “Whistleblowers Are Protected” poster to meet all current legal standards, including a list of employee rights and responsibilities under existing whistleblower laws. The notice must be in a font larger than 14 point and contain the telephone number to the whistleblower hotline. While the Labor Commissioner currently has a sample notice, it includes a disclaimer that it doesn’t guarantee compliance. AB 2299 fixes this issue. Starting January 1, 2025, employers who display the new model notice will be considered compliant with the mandate to prominently exhibit employees’ whistleblower rights and responsibilities.
2. The Workers’ Compensation Poster, required by AB 1870, now obligates employers to include information on the “Notice to Employees – Injuries Caused by Work” (i.e., workers’ compensation) notice about an employee’s right to seek advice from a licensed attorney regarding their rights under workers’ compensation laws, and clarifies that attorney fees will typically be deducted from an injured employee’s settlement.
3. State Minimum Wage: The State’s minimum wage is increasing to $16.50/hour on January 1, 2025. This means that the minimum wage poster will be updated accordingly.

CEA offers various poster options for employers, including both paper and laminated all-in-one posters on the CEA Store. Our posters are double-sided, with English on one side and Spanish on the back. If you have both English and Spanish-speaking employees, we recommend ordering two posters so you can prominently display both languages.

Posted by Astrid Servin, PHRca, HR Director on December 1, 2024

Tags: Employers Report

California employers must ensure their teams complete harassment prevention training to stay compliant-and it may save your holiday party, too! With two hours of training for supervisors, and one for employees, every two years, the training covers the essentials of recognizing and preventing workplace harassment. Beyond meeting California’s legal requirements, this training can help everyone navigate seasonal celebrations responsibly. After all, a respectful workplace is the best gift you can give! If the last time you conducted your harassment prevention training was in 2022 and you’re overdue, let CEA help you check this off your list!  Keep your team compliant with our easy options:

Virtual Trainings/Live Webinars

Live webinars are a welcome option for those who want to sit back and learn from a live trainer,  from the comfort of their laptop. CEA’s last live webinar of the year is coming up on December 12, 2024. Register your supervisors and/or employees in a live webinar where our trainers will satisfy the legal requirements in a friendly and engaging environment.

On Demand Courses via CEA University

On-demand training provides more flexibility when your staff has different schedules. Visit CEA’s website to enroll your staff in a self-paced California compliant course, in either English or Spanish. Employees can learn at their own pace and at their own time.  Our on demand system will save their progress, allowing them to stop and return to the course at their convenience.

Private Trainings-Virtual or Onsite-Just for Your Team

Private trainings often result in increased interaction and leave a lasting impact on your staff. CEA’s trainers are available for private harassment prevention training in either English or Spanish. Our trainers will work with you on enrolling an unlimited amount of participants in a single session at a low cost. Premier and Ultimate members-you can use your member hours towards this training! Schedule yours today by emailing us at ceainfo@employers.org or calling us at 1-800-399-5331.

Posted by Giuliana Gabriel, J.D., Vice President of Human Resources on December 1, 2024

Tags: Employers Report

While some companies are busier than ever during the holiday season buzz, for others, December represents a “slowdown”-a time for rest, hibernation, and festivities. Many employers even shut down for a week or more until the New Year rolls around, and some require the use of vacation time to bridge the gap. However, there are important considerations to keep in mind during holiday closures, particularly when it comes to exempt employee pay and vacation policies in California.

Pay Considerations

Employers have discretion over whether they will pay non-exempt (hourly) employees during holiday closures. As such, your handbook policies should outline when you are closed for a holiday or a particular time of year, whether employees will receive holiday pay, and if a particular holiday is worked, whether you will pay a premium (i.e., higher rate of pay per hour).

Holiday closures are a little trickier for exempt (salaried) employees. Remember, to maintain exempt status under the executive, administrative and professional exemptions, the employee must be paid their full salary for a workweek in which they perform any work. This is known as the “salary basis” rule.

Therefore, if you are closing for less than a full workweek, you must still pay your exempt employees their full salary whenever they are ready, willing and able to work. You are not allowed to pro-rate their salary if you close for a holiday. One exception is if your business closes for a full workweek, and you ensure that the exempt employee performs no work that week, then you would not be required to pay them their salary for that period. However, if the exempt employee even just checks a few emails or makes a work call, they must be paid their entire salary for the week. As such, make sure your expectations are clear and take steps to ensure absolutely no work is performed (e.g., block access to server/emails, take work phones/company laptops, etc.).

Pro Tip: Defining the Workweek

Be sure to check how your policy defines workweek, as this will determine whether exempt pay is owed. Let’s go over an example. This year, Christmas through New Year’s Eve falls on a Sunday through Saturday. If the employer defines their workweek as “Sunday through Saturday” and closed during that week, they would not have to pay exempt employees (so long as no work is performed). However, if the workweek is defined as “Tuesday through Wednesday,” then the employer would not be closed for an entire workweek (the closure would be split between multiple workweeks). In that case, exempt employees would still be owed their full salary.

There are limited exceptions when an employer is permitted to pro-rate an exempt employee’s salary. CEA members may refer to our Exempt Employee Deductions Fact Sheet on our HR Forms page.

Vacation Policies

Many employers also want to know whether they can require the use of vacation time during holiday closures. The benefits include lowering vacation balances on the books, avoiding disruption with healthcare premium pay deductions, etc.

The answer is yes, but employers need to ensure reasonable advance notice whenever they require employees to use vacation time. The California Labor Commissioner has determined that 90 days constitutes reasonable advance notice. As such, it is recommended that employers put employees on notice in their handbook policies, and remind employees at least three months in advance of any company shutdowns or closures when vacation use is required.

If an employee is currently out on a leave of absence, proceed with caution in requiring use of vacation time during a closure. For some leaves of absence, the employer cannot require an employee to use their vacation time (pregnancy disability leave is one example). Also remember, employers should never require employees to use their mandatory paid sick time.

There are a lot of considerations when it comes to employment policies. Let us make it easy for you with our updated 2025 Employee Handbook. We have a do-it-yourself option for purchase, or we can customize it for you from start to finish! Give us a call at 800.399.5331.

Posted by California Employers Association on November 25, 2024

Tags: Employers Report

Effective January 1, 2025, California employers will no longer be allowed to require their employees to take two weeks of accrued vacation leave before taking paid family leave under the State’s family temporary disability insurance program. The change was brought about by Assembly Bill (AB) 2123, enacted Sept. 29, 2024.

Paid Family Leave

California’s paid family leave program provides up to eight weeks of partial pay within a 12-month period. Benefits are 60 to 70 percent (depending on income) of the employee’s highest quarterly earnings, 5 to 18 months before the claim begins. Paid family leave may be used for:

• Bonding with a new child (either by birth, adoption or foster care placement);
• Caring for a seriously ill family member (child, parent, parent-in-law, grandparent, grandchild, sibling, spouse or registered domestic partner); and
• A qualifying exigency related to the covered active duty (or call to covered active duty) of the employee’s spouse, domestic partner, child or parent in the U.S. Armed Forces.

The program is funded entirely by employees through paycheck withholding. Currently, the law authorizes employers to require employees to take up to two weeks of earned vacation leave prior to the employee’s initial receipt of family leave benefits during any 12-month period.

Paid family leave does not create a right to a leave of absence; however, many employees take advantage of paid family leave during protected leaves, such as leave under the California Family Rights Act and/or Family and Medical Leave Act.

Employers can learn more about the program here.

Amendments in AB 2123

AB 2123 amended the law addressing the paid family leave program by striking the employer option to require employees to take vacation leave before receiving paid family leave. The change takes effect Jan. 1, 2025.

Implications for Employers

The change allows the possibility of longer employee absences overall, as employees will be able to take their full amount of paid family leave without first using any accrued vacation time. At a later date, employees may then choose to use their full vacation leave.

Posted by Kim Gusman, President & CEO on November 25, 2024

Tags: Employers Report

Ah, the holiday season! A magical time of year when office coffee mysteriously becomes peppermint-flavored, Secret Santa becomes “Who Forgot to Sign Their Name?” and HR has to juggle the fine line between festive fun and California labor law compliance. But don’t worry-we’re here to help you navigate bonuses, gifts, and celebrations while keeping your team feeling merry and bright (and your management team out of trouble).

Holiday Pay: The Great Debate

First things first: Do employees in California have to get extra pay for working on holidays? The short answer? Nope! Unless your company policies or contracts say otherwise, holiday pay isn’t legally required. But come on, who wants to be the office Grinch?

Bonuses: Generosity with a Side of Compliance

Bonuses are a fan favorite, but in California, you’ve got to know your “discretionary” from your “non-discretionary.”

• Discretionary Bonuses: These are like surprise holiday cookies-completely unexpected and with no strings attached. They’re not tied to performance metrics and don’t affect overtime calculations. These are not considered part of the employee’s regular rate of pay.
• Non-Discretionary Bonuses: These are more like the fruitcake of bonuses-deliberate and full of ingredients.  If bonuses are tied to measurable performance (like sales goals) they must be included in overtime calculations, or the labor board may hand you a lump of coal.

Pro tip: To avoid confusion, be crystal clear when announcing the nature of the bonuses to your team.

Holiday Gifts: It’s the Thought (and Budget) That Counts

You don’t need to break the bank to spread holiday cheer. A little thoughtfulness can go a long way in making your employees feel valued:

• Self Care Packages: Who doesn’t love unwrapping a box of snacks, candles, or a cozy blanket? Curate gifts that cater to employees’ interests or regional preferences, such as locally sourced treats.
• Gift Cards: They’re the Swiss Army knife of gifts-practical, flexible, and guaranteed to not end up re-gifted at next year’s white elephant exchange.
• Extra Time Off: The holy grail of employee gifts. Nothing says “We appreciate you” like a bonus day to sleep in or tackle that Netflix backlog.

Parties and Celebrations: Keeping It Jolly (and Inclusive)

Holiday celebrations are the ultimate team-building opportunity-or at least an excuse to wear that reindeer sweater you love. But holidays also mean different things to different people, so inclusivity is the name of the game:

• Neutral Themes: Instead of Christmas-specific décor, consider going with winter wonderland vibes. Everyone loves twinkly lights and hot chocolate, right?
• Team Activities: Host a fun, low-pressure event like trivia, cookie decorating, or a “guess the ugly sweater” contest. Virtual or in-person, keep it light and full of laughs.
• Charity Initiatives: Nothing warms the heart like giving back. Partner with your team to support a local cause or charity-it’s a win for everyone.

Wrapping It All Up

The holidays are a time to show your team how much you appreciate their hard work-without accidentally stepping on a compliance landmine. They’re also an opportunity to reinforce a culture of recognition and care. Bonuses, gifts, or just a heartfelt thank-you can go a long way in ending the year on a high note.

So, grab your Santa hat, double-check your payroll policies, and spread some joy that would make even the Grinch crack a smile. After all, happy employees are the best gift of all!

Happy Holidays from all of us here at CEA!

 

PS: CEA Annual Meeting Reminder:
CEA will hold it’s 87^th Annual Membership Meeting on December 19, 2024 at CEA’s Main Office in Sacramento, CA.

Posted by California Employers Association on November 1, 2024

Tags: Employers Report

Don’t “fall” out of compliance! Join us for Wage and Hour Audit Package: Page Prevention Training on November 14 and learn how to properly manage a wage an hour audit to protect yourself from rule changes recently made by California by reforming the Private Attorneys General Act, known as “PAGA”. Register Today!

Posted by Margaret Oglesby, Compensation Consultant, Cascade Employers Association on November 1, 2024

Tags: Employers Report

When you request a market base pay assessment, you’re seeking a comprehensive analysis of how your organization’s compensation stacks up against industry standards and competitors. This process is key for ensuring your compensation strategy is competitive and fair, ultimately helping you attract, motivate, and retain top talent. Here’s a breakdown of what a market base pay assessment typically involves:

1. Defining Objectives and Scope

The first step in conducting a market base pay assessment is clearly defining its objectives and scope. Common goals include ensuring your pay practices are competitive, fair, and aligned with industry standards. The scope often covers:

• Market Positioning: Deciding whether your organization aims to lag, match or lead the market by targeting the 25^th, 50^th or 75^th percentile of market data.
• Job Benchmarking: Identifying roles in the market that are comparable to your organization’s positions.
• Market Data Analysis: Gathering relevant pay data from survey sources.
• Demographic Alignment: Using data that reflects your organization’s specific demographic profile such as the organization’s location, annual revenue, industry, and number of fulltime employees.
• Internal Pay Structure Review: Comparing your organization’s current pay against the market.

These elements shape the overall strategy of the assessment, ensuring it focuses on relevant areas impacting your organization.

2. Data Collection

A robust data collection process forms the foundation of a market base pay assessment. This involves gathering customizable compensation data from reputable sources, including:

• Compensation Surveys: Industry-specific surveys providing insights into salary ranges, bonuses, and benefits. At Cascade, we use survey sources tailored for both for-profit and non-profit organizations.
• Salary Databases: Third-party databases aggregating compensation information across various sectors.
• Industry Reports: Reports offering insights into compensation trends and benchmarks for specific roles or industries.

The data used is current and relevant to the specific role, geographic location, and industry. A minimum of three survey sources is used, following best practices, to establish a market-based salary range. The more specific and reliable the data, the more accurate the results.

3. Job Matching

Job matching involves comparing internal roles with equivalent roles in the external market. Key factors considered include:

• Job Responsibilities: Ensuring role responsibilities align with the market data.
• Required Skills and Experience: Comparing the required skills and experience levels between the internal role and market data.
• Job Level: Matching the organizational level and seniority of the role with external benchmarks.

This step is critical to the accuracy of the assessment, as mismatched roles can lead to inaccurate pay recommendations.

4. Compensation Analysis

With data in hand, the next step is to analyze the compensation levels, which typically includes:

• Salary Range: Determining the start, midpoint, and maximum of the range based on the averaged market data.
• Pay Structures: Comparing your pay structures with market trends and practices.
• Internal Equity: Assessing pay consistency within your organization to ensure fairness and equity.

Reporting and Recommendations

Once the analysis is complete, a report is generated outlining the findings. This report generally includes:

• Survey Sources: A comprehensive list of all sources utilized for the specific analysis.
• Market Salary Data Analysis: The average of all data points to determine the minimum, midpoint, and maximum of the salary range.
• Market Salary Range: The recommended salary range derived from averaging the data across all survey sources.
• Organization Comparison: An evaluation comparing your organization’s current pay or midpoint to the market midpoint.

A market base pay assessment is an essential tool for ensuring that your compensation practices are both competitive and equitable. By systematically analyzing market data, comparing job roles, and making informed recommendations, you can optimize your compensation strategy to attract and retain top talent. Investing time and resources into this process will significantly enhance your organization’s competitiveness in today’s dynamic job market.

As CEA’s sister association and partner for all compensation requests, Cascade offers comprehensive market base pay assessments, including market base pay plus target bonus assessments for total rewards insights. If you need assistance with any role, contact Cascade’s compensation team today for discounted pricing, exclusive for CEA members.