This year saw the hourly rate of California workers rise to $8.00, a rise of over 13% thanks to the recently enacted statutes of California employment law. Because of this California now has the highest hourly rate in the USA.

In addition, workers under California employment law provisions will also receive an increase in meal and lodging credits by the same percentage as the minimum wage increases. Be aware though, that under employers governed by California employment law, they can use the increased amounts for meals and lodging to count against minimum wage when they provide workers with meals/lodging.

Bad luck if you are a federal employee who works outside California's state lines. The increases do not apply to you and you remain at $5.15 per hour. Time to get a job in California!

The hottest issue in California employment law is the payment of overtime. This is an area of California employment law that is pretty much akin to stepping on a land mine. Why? Because there are two classes of workers under California employment law - exempt and non-exempt - and failure to know the difference can cost business big bucks.

A non exempt employee who works overtime will be taxed on that overtime, but an exempt employee, although still taxed, would be eligible for a nice little tax rebate from the IRS.

On the plus side California employment law stipulates that when paying a non-exempt employee, that employee is subject to all the rules as set out by the Industrial Welfare Commission which means that he must be paid for all the overtime hours worked.

Check the California employment law codes to see which category you come under or call your local Department of Labor.

Basically, the category under which an employee falls is based upon their level of responsibility or their professional status. Whether they are receive a wage or salary, or their job title does not have anything to do with it.

Examples of exempt employees under California employment law would include licensed professionals such as lawyers, engineers, doctors, certified public accountants and architects. Managerial staff who are responsible for training, hiring and firing and spend less than 50 percent of their time performing the same duties as their staff also qualify.

The other two categories considered to be exempt are outside sales reps and those who create/formulate business policies for their organizations. Again, if you have any questions about exempt versus non-exempt employees and how to make sure they are paid according to the law, check with the nearest Department of Labor office. Save yourself some time and grief in the long run.

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In his working life Colin R Cherry has substantial experience regarding to legal matters. Check out his Employment Law Guide for more tips and articles.