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The minimum wage in various cities in California goes up on July 1, 2019. This information is critical for all customers of janitorial services.

Let’s get the facts straight!

Minimum wage increase will affect your company

What happened in the past?

In June 2018, the California Labor Commissioner issued $4.5 million in damages and penalties against The Cheesecake Factory Restaurants, Inc., for wage and hour violations by a janitor subcontractor under California Labor Code 2810.3. The Cheesecake Factory was penalized even though they did not directly employ that subcontractor and the janitors were independent contractors.

What does the law say?

California law explicitly holds client companies, with limited exceptions, jointly liable for wage and hour violations of its janitorial vendors, including any contractors or subcontractors performing the work, regardless if the client directly contracted with the janitorial vendor. Specifically, California Labor Code 2810.3 makes a “client employer” jointly responsible for ensuring the janitorial vendor pays wages and provides workers’ compensation insurance according to law.

Which rate applies to your organization?

California now has 39 separate minimum wages rules to track. There are state statutory minimums, city wage ordinances, county minimums for unincorporated areas, and minimums depending on the number and type of employees.

Importantly, the vast majority of California minimum wage rules increase either on January 1st or on July 1st each year. By reviewing the minimum wage rules every six months before each January and July, you can ensure you and your organization are up-to-date and compliant. Please note, Berkeley is the only California jurisdiction that increases minimum wages on October 1st and not on a recurring January 1st or July 1st basis.

Fox Rothchild LLP releases an updated California minimum wage chart that summarizes all 39 separate minimum wage rules on a single page in a succinct manner. You can find that chart HERE.

The Servicon approach:

At Servicon Systems, we work hard to ensure that we pay employees accurately, fairly, and legally. We educate all supervisors and managers on the importance of wage-and-hour violations to protect our employees and our customers. CLICK HERE to learn more about Servicon.

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