Earning Online from Panama

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Did you know that thanks to California employment law and the backing of the current Governor, California will have the highest hourly rate of pay in the USA starting January 1, 2008? California employment law will then dictate that a worker’s minimum wage will be $8.00 an hour, up from $7.50 an hour.

In addition, workers under California employment law provisions will also receive an increase in meal and lodging credits by the same percentage as the minimum wage increases. Be aware though, that under employers governed by California employment law, they can use the increased amounts for meals and lodging to count against minimum wage when they provide workers with meals/lodging.

These California employment law provisions do not apply to federal employees that work outside California. For those unfortunates the wage stays at $5.15 per hour.

The issue that is receiving most attention at the current time is the payment of overtime. Under California employment law there are two classes of worker - non-exempt and exempt and the inability to know the difference can prove to be expensive

A non exempt employee who works overtime will be taxed on that overtime, but an exempt employee, although still taxed, would be eligible for a nice little tax rebate from the IRS.

Is there a difference when paying an exempt versus non-exempt worker? Under California employment law, a non-exempt worker is subject to all pay rules set up by the Industrial Welfare Commission - that includes overtime. In other words, a non-exempt employee must be paid all overtime hours worked.

If you are an employer and are not sure into which category your workers fall, then check out the California employment law codes and regulations. Alternatively you can call the Department of Labor for advice.

Basically, the category under which an employee falls is based upon their level of responsibility or their professional status. Whether they are receive a wage or salary, or their job title does not have anything to do with it.

As a general rule of thumb, employees considered to be exempt under the law are licensed professionals. E.g. doctors, lawyers, architects, engineers, and certified public accountants. Also exempt are managers who hire, fire, and train, and spend less than 50 percent of their time performing the same duties as their employees.

Two other categories that are considered to be exempt are travelling sales representatives and those who create or formulate business policies for their organizations. Again, if you have any questions about exempt versus non-exempt employees and how to make sure they are paid according to the law, check with the nearest Department of Labor office.