The California Wage Orders regulate many of the wage/hour obligations that employers deal with every day, including overtime pay, exemptions, meal/rest breaks, minimum wage, reporting time pay and alternative workweek schedules, to name just a few. There are different wage orders that cover different industries/occupations, although there is substantial overlap in the provisions of most wage orders. Car dealerships are generally covered by Wage Order 7 (Mercantile Industry). With the ongoing increases in the California minimum wage, the Industrial Welfare Commission has issued an amendment to the existing Wage Orders that updates the provisions involving the minimum wage rate. Note that employers are obligated to post both the applicable Wage Order and the Amendment in an area frequented by employees where they may be easily read during the workday. A copy of the Wage Orders and Amendment is available through the Department of Industrial Relations.
Although the California minimum wage does not increase again until January 1, 2018, there are a number of local minimum wage ordinances that increase minimum wage rates effective July 1, 2017, including but not limited to: Los Angeles, San Francisco, Santa Monica, Pasadena, Emeryville, Malibu, San Jose and San Leandro. Affected employers should check their local minimum wage rates and plan for any rate adjustments, including checking hourly rates in pay plans and consulting with counsel if further clarification is needed.