In the know: new laws cover everything from minimum wage to trade secrets. Here's a primer.

• Author: Terman, Mark E.
• Position: LABORLAW

Some 636 of the bills introduced in the 2005-06 California legislative session mentioned "employer." Yet, with all that interest in employers, not too many of them made it through the Legislature. Even fewer made it past the governor's desk and into law. Still, there are some new laws that you and your clients or employers should know about.

INCREASED MINIMUM WAGE AB 1835 raises California's hourly minimum wage for non-exempt employees from $6.75 to $7.50 effective Jan. 1, 2007, and to $8 per hour effective Jan. 1, 2008.

These new rates will affect other wage and hour law compliance issues.

For example, there are two tests to be met to determine whether an employee is properly classified as exempt from overtime pay. The "duties" test typically draws the most attention for determining executive, administrative and professional exemptions.

The "salary basis" test requires payment of a salary that is twice the minimum wage. To satisfy this test, the required annual salary will increase from $28,080 to $31,200 effective Jan. 1, 2007, and to $33,280 effective Jan. 1, 2008.

The increased minimum wage also will affect the overtime pay exemption for commissioned employees who must be paid 1.5 times minimum wage and more than half of their pay must be commissions to remain exempt.

In addition, employers still may require employees to supply and maintain their own hand tools as long as the employee makes at least twice the minimum wage.

UPDATE WORKPLACE NOTICES AND PAMPHLETS ANNUALLY

Workplace notices and pamphlet requirements tend to change at least once a year, usually Jan. 1.

For example, a new required minimum wage notice must be posted in the workplace effective Jan. 1, 2007. Also, the U.S. Department of Labor has published a new required poster relating to leave and return to work rights of those in military service (See USERRA discussion below). The California Chamber of Commerce and other vendors can provide a complete set of required posters and notices.

TRADE SECRET CLAIMS: BAD FAITH IS STILL A BAD IDEA

SB 1636 amends the Trade Secrets Act (California Civil Code Sec. 3426 et. seq., the "Act") to permit an award of costs (such as expert witnesses), in addition to reasonable attorney fees, to the prevailing party if a claim of misappropriation is made in bad faith, or a motion to terminate an injunction is made or resisted in bad faith.

This law seems intended to put the brakes on employers who sue former employees for alleged trade secret...