Meat + Poultry - November 2016 - 78

LABOR

Wage awareness
An increasing number of cities and states are beginning
to believe that $15 an hour minimum wage should be
mandatory, including California which recently passed $15
per hour minimum wage laws. However, the California
Chamber of Commerce called the increase "a job killer."
As more politicians and groups push for higher minimum
wages, employers need to prepare now for the financial,
compliance and regulatory challenges these significant
changes bring.

minimum wages to the highest in the country, with both
reaching $15 in a few years.
But while some states are raising their minimum
wages, others are pushing back. For example, North
Carolina recently passed a law that limited the ability
of cities and towns to set minimum wages. In February,
Alabama lawmakers passed a similar law to ban local
governments from establishing local minimum wages. That
was in response to a law in Birmingham that would have
raised the minimum wage to $10.10 in the city.

STAYING INFORMED

According to the National Conference of State
Legislatures, more than half of the states and Washington,
DC, have minimum wages above the federal minimum
wage of $7.25 per hour. When federal and state laws
have different minimum wage rates, the higher standard
applies. For example, California and New York have
recently enacted laws that will increase those states'

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It's important to plan ahead, and
work with HR and legal counsel
in order to understand what
changes may be on the horizon and
proactively prepare for them.

Obviously, the biggest repercussions of the rising
minimum wage will be financial, as companies struggle
to remain competitive and profitable with skyrocketing
worker costs. But there are other considerations as well,
including regulatory, paperwork and compliance. Among
the things companies need to know:
x Understand the changes
Different states have different timelines for the increase
in minimum wage and even states that aren't aiming for
$15 have made increases. Employers need to prepare now
for actions that have been already legislated, or could be
in the works. It's important to plan ahead, and work with
HR and legal counsel in order to understand what changes
may be on the horizon and proactively prepare for them.
x Review employee classifications
Although the minimum wage largely affects hourly
workers, new laws could also impact whether employees
are properly classified as exempt salaried employees. This
could have far-reaching financial and HR considerations.
For example, in order to be exempt from overtime laws
in California employees must earn a minimum monthly
salary that is no less than twice the state minimum wage.
That means employers in the Golden State need to be
aware of how the minimum wage boost could impact
whether employees are properly classified as exempt
salary personnel.
x Posting notice requirements
Employers who are required to post wage notice
requirements will need to update their information if their
states have increased the minimum wage. Some states also
require written notice, which will need to be updated and
disseminated.
As minimum wage laws go up, the stakes will only
get higher. In order to minimize the expenses and risks,
employers need to prepare now.
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Meat + Poultry - November 2016

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