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

Bars and Nightclub Owners: You Must Offer Date Rape Drug Test Kits Starting this Summer!

Beginning this July, California bars and nightclubs must now add “drug testing devices” to their regular inventory. If you own a bar or nightclub, you likely have a Type 48 liquor license, which is one of the most highly sought after, most expensive, and difficult liquor licenses to obtain. As a result, it is no surprise that California is now imposing yet another requirement on these licensees. Any licensee that is applying for a new Type 48 liquor license or currently holds on existing Type 48 liquor license is required to offer for sale at a reasonable price or provide for free a drug testing device.

Despite Zero Complaints, the EEOC Sues Family-Run Meathead Movers for Discrimination Claiming Potential “Discouragement Bias” Against Hypothetical Middle-Aged Person.

A California family-run moving company, Meathead Movers, is being sued by the Equal Employment Opportunity Commission for age discrimination due to “potential discouragement bias” against a hypothetical person because the moving company put out advertisement seeking athletic, strong, fit, and capable people for moving furniture and boxes of belongings. Employers are now facing the additional burden of this obvious word game: careful how you advertise for employees because bias or discrimination may now be inferred even when no one comes forward claiming discrimination- possible discouragement of a hypothetical person may be enough.

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