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Business Advocacy
Legislative Action Committee

ALERT -

Federal Minimum Wage Increase July 24

The federal Minimum Wage increased to $7.25 on July 24, 2009.  However, California employers must pay the higher state minimum wage of $8.00 per hour. California employers must post both the "Employee Rights Under the Fair Labor Standards Act" Federal minimum wage poster and the "California Minimum Wage MW-2007" required posting.

Labor Law Corner
Summer Work for Minors: Work Permits
Other Rules Still Apply

Dana Leisinger
Senior Helpline
Consultant

Some of our employees would like their high school kids to work in our office this summer to gain experience. Do we have to pay them?

First, before anyone under 18 works for a company (with limited exceptions), he/she must obtain a work permit. These permits are required year-round; there is no exception for casual summer employment. The permits may be obtained from the local superintendent of each school district, and must be kept on file at the company.

Second, minors are entitled to minimum wage in most cases. Both state and federal law allow employers to pay subminimum rates, but the two bodies of law differ, and it is wise to seek legal counsel before paying the lower “learners” rate, which is only for a limited time in any case.

Review Restrictions

Other restrictions apply to minors. A summary is available on HR California under the form title “Basic Provisions and Regulations – Child Labor Laws.” If a company is going to employ minors, it is wise to review these restrictions, which vary from 12-year-olds to 17-year-olds.

People often wish to work to gain experience and knowledge in certain fields, but there are limited circumstances when they do not have to be paid. Most people perform services as an employee or as an independent contractor, and are paid accordingly. Minors working in an office as noted above, however, fall into the category of “employee” status.

Other Worker Categories

Two other main categories of workers are as follows:

  • Volunteer: When an individual is performing services for public service, religious or humanitarian objectives, not as an employee and without expecting pay.
  • Intern: Students who work in the course of their studies as part of the curriculum and who are getting course credit (a must) need not be paid and are not employees.

If a company is going to hire people/minors for the summer, it is advisable to seek legal counsel in order to ensure all legal requirements are met.

Reprinted by permission of the California Chamber of Commerce