Steven Kesten, Esq.
View Entire Blog
Blog Post

Employment Law Update for 2013 Part 2

New 2013 Exempt Classification Rates
California’s Department of Industrial Relations (DIR) announced rate changes for the computer software employee exemption and the licensed physician or surgeon exemption.

The new rates take effect January 1, 2013.
For the computer software employees exemption:
• The minimum hourly rate of pay exemption increased to $39.90 from its previous rate of $38.89
• The minimum monthly salary increased to $6,927.75 from its previous rate of $6,752.19
• The minimum annual salary exemption increased to $83,132.93 from its previous rate of $81,026.25.
For the licensed physician or surgeon exemption:
• The minimum hourly pay for licensed physicians and surgeons increased to$72.70 from $70.86
These rates are tied to the California Consumer Price Index (CCPI) for Urban Wage Earners and Clerical Workers. The 2013 rate changes reflect the 2.6 percent increase in the CCPI.

Appellate Court Agrees With See’s Candy: Rounding Policies OK in California

Last month, the Fourth District Court of Appeal issued an employer-friendly opinion by concluding that, under California law, employers may round employee timecard entries to the nearest-tenth of an hour.

This ruling is particularly important because there is no statute or prior case law that explicitly authorizes this common practice, a practice that is permissible under federal law and followed by California’s labor agency.

In the case, Silva v. See’s Candy Shops, Inc., See’s utilized a timekeeping software system to keep track of its employee’s working hours. The software system required employees to “punch” into the system at the beginning and end of their shift. Adjustments to the timecards were made only in accordance with two See’s policies:
• The nearest-tenth rounding policy; and
• The grace period policy.
A class action lawsuit was brought by a former employee challenging these two policies. See’s was able to demonstrate that its nearest-tenth rounding policy went up and down and, that the policy, over time, did not result in a loss to the employee. Additionally, See’s was able to present evidence that employees knew about the rounding and grace period policies.

San Francisco Minimum Wage Increases in January

The minimum wage in San Francisco will increase to $10.55 per hour, effective January 1, 2013:
• This increase applies to all employers that have employees who perform work in San Francisco, even of you aren’t based on San Francisco.
• Any person who performs at least two hours of work in a particular week for an employer within the city of San Francisco’s geographic boundaries is entitled to be paid the San Francisco minimum wage.
• This applies to all workers, regardless of whether they are legally authorized to work in the United States.