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Business Law – News

Customer Alert – Misleading Certificate of Status Solicitations

Letters are being sent to businesses registered with the Secretary of State directing them to submit $49.50, respond by a certain date, complete a form (see example (pdf~127KB)), and send the money and documentation to a private entity named "California State Corporations." According to the letter, California State Corporations will provide a "certificate of status." However, these Certificates of Status (see example (pdf~97KB)) are fraudulent because only the Secretary of State can issue a Certificate of Status.

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Changes to Limited Liability Company Filings

As of January 1, 2014, the "Beverly-Killea Limited Liability Company Act" (California Corporations Code sections 17000 - 17657) has been repealed and replaced with the "California Revised Uniform Limited Liability Company Act" (California Corporations Code sections 17701.01 - 17713.13).

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Minimum Wage Increases

Although there are some exceptions, almost all employees in California must be paid the minimum wage as required by state law. Effective July 1, 2014, the minimum wage in California is $9.00 per hour. Effective January 1, 2016, the minimum wage in California is $10.00 per hour. There are some employees who are exempt from the minimum wage law, such as outside salespersons, individuals who are the parent, spouse, or child of the employer, and apprentices regularly indentured under the State Division of Apprenticeship Standards. Minimum Wage Order (MW-2014)

There is an exception for learners, regardless of age, who may be paid not less than 85% of the minimum wage rounded to the nearest nickel during their first 160 hours of employment in occupations in which they have no previous similar or related experience.

There are also exceptions for employees who are mentally or physically disabled, or both, and for nonprofit organizations such as sheltered workshops or rehabilitation facilities that employ disabled workers. Such individuals and organizations may be issued a special license by the Division of Labor Standards Enforcement authorizing employment at a wage less than the legal minimum wage. Labor Code Sections 1191 and 1191.5

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