We are fast-approaching the end of the year, which is when most businesses evaluate the successes and challenges of the past year and make plans for improvements in the coming year. Just like Santa goes over his list at this time of year, here is a checklist to help your business close out the year and prepare for 2018.
Pay Audit – If your company has not performed a pay audit, this is the perfect time to do it since determining whether each employee should receive a raise and how much will require you to review each employee’s pay. Extend that review to an analysis of whether a pay discrepancy exists between employees in the same or similar positions. This will help mitigate your company’s risk of Equal Pay violation claims in the future. If you discover pay discrepancies, this is the time to address those discrepancies and provide raises and bonuses where appropriate.
Bonus – As you determine employee bonuses, make sure to review your written policies related to bonuses to ensure that you are meeting the expectations that your company set for your employees. If the current bonus structure no longer works for your business, make the necessary revisions and communicate them to your employees in the new year.
Learn more about bonuses.
Minimum Wage Increase – If you have employees who currently make minimum wage, remember that California’s minimum wage threshold goes up on January 1, 2018.
- $10.50 per hour for employers with 1-25 employees
- $11.00 per hour for employers with 26 or more employees
Make sure to also check the minimum wage requirements for the cities and counties where your employees work as they may be higher than the state’s minimum wage.
Salary History – Review your employment applications to ensure that you not only receive the information necessary to determine whether an applicant would be a good fit but also for compliance with California and federal laws. Effective 2018, employers may no longer ask an applicant for their salary history. Learn about California’s pay privacy law.
Criminal History – California also passed a ban the box law related to questions about a job applicant’s criminal history that goes into effect on January 1, 2018, and is applicable to all employers in California with five or more employees. Consult with an attorney if your employment application currently has questions about an applicant’s conviction history; arrest record; participation in a pretrial or post-trial diversion program; and convictions that have been sealed, dismissed, expunged or statutorily eradicated pursuant to law.
Interview and Hiring Protocols – Review your interview questions and hiring protocols to ensure that your hiring decisions won’t give rise to discrimination claims. Systemic discrimination is a hot enforcement area.
Contact me at (949) 529-0007 if you need assistance preparing for the upcoming year.
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