California Employers Beware: Potential New Law Gives Employees the “Right to Disconnect.”

If you think California has been making it harder and harder for employers to operate in the state, you may have one more draconian law to deal with soon. California is proposing a new law which gives employees the right to disconnect from all communications from their employer during their non-working hours. The only exception where an employer can contact employees during their non-working hours is during an emergency or an immediate scheduling issue. If you run a business, you know that many unforeseen events and many questions arise during the course of a business day - some of which can be solved with one simple phone call or text. This potential new law does not create clear boundaries. Instead, it creates many more questions that have been left unanswered. It also fails to take into account the practical way in which businesses are run, how issues are resolved, and the situations in which employees have a chance to even work overtime hours.

Employers Cope with the Implementation of California’s $20 Fast Food Minimum Wage.

California’s mandatory $20 minimum wage for fast food workers is already changing the way fast food chains operate. Business owners could have predicted the immediate outcome of California’s infamous $20 fast food minimum wage: rapidly rising prices of fast food and the mass layoff of fast food workers was no surprise. The fallout in the California fast food industry has begun and we are only seeing inklings of the fast food industry’s future. For fast food restaurants and their owners, the simultaneous increase in the 1) worker’s hourly rate, 2) manager’s salary, 3) price of menu items, and 4) price in groceries can be a difficult (if not fatal) balancing act.

California Implements Last Minute Exemptions to the $20 Fast Food Minimum Wage.

After some confusion regarding the new $20 fast food minimum wage law, California created some last minute exemptions to help clarify which restaurants are required to pay the new minimum wage. However, the last minute exemptions are narrowly tailored, and the new minimum wage likely applies to most fast food restaurants in California. On a practical level, these narrow exemptions will likely have little impact on the cost of labor for employers. For example, if workers are doing the same jobs at both an airport McDonald’s and a stand-alone McDonald’s, there is little incentive for the workers to continue to work at the airport for less pay. Clearly, a pay increase will likely occur across all facets of the fast food industry.

California’s $20 Fast Food Minimum Wage is in Effect NOW and Applies Broadly to Most Fast Food Chains.

Most people are aware of California’s new $20 fast food minimum wage, but some are uncertain whether or not the minimum wage increase applies to their particular restaurant or shop- especially in light of the last minute exemptions signed into law. The phrases “fast food restaurant employee,’ “limited-service restaurant,” and “establishment” are defined in the new law. It is important to be certain whether or not your restaurant is required to pay broadly reaching $20 minimum wage or if you may fall into an exemption, which is discussed in a later blog.

Small and Mid-Size Business Owners: Do Not Run Afoul of the IRS’s New (and constantly changing) Rules for 1099-K Forms.

With taxes on the minds of many business owners, here is a gentle reminder for next year: for the 2024 tax year, the Form 1099-K could be sent to anyone who used payment services, apps, and online marketplaces to accept payment (such as CashApp, Zelle, Venmo, etc). In addition, the reporting threshold lowers dramatically. For the 2024 tax year, the IRS threshold for reporting will drop down to $5,000. Eventually, the IRS will drop the threshold down to $60 which was set by the American Rescue Plan passed in March of 2021. Although the IRS is taking steps to lower the threshold in phases, it is important for business owners to be aware of these changing reporting requirements and threshold amounts.

Employers, EmploymentKathleenFebruary 29, 2024Etsy, small business, shop local, 1099-K, 1099-K form, Mid-size business, CashApp, Zelle, PayPal, Venmo, IRS, IRS Reporting

New Year, New Minimum Wage

Minimum wage increases in 22 states. Some of the largest increases for an hour’s worth of work are found in Delaware, Hawaii, Illinois, Maryland, Nebraska, New Jersey, New York, and Rhode Island. These states increased their minimum wage by at least $1 or more, with some topping the charts at an increase of at least $2.00 an hour (i.e. Hawaii and Maryland).

Employers, Employment, Minimum WageKathleenFebruary 21, 2024minimum wage increase, minimum wage, employees, employer

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