Wage Order Basics

Every California business is required to post where employees can see them:

• The Wage Order(s) that apply to its operation;
• The applicable Wage Order Summary; and
• The Minimum Wage Order.

What Is a Wage Order?

A Wage Order is a set of instructions that covers pay requirements for non-exempt workers in a specific set of related industries. Wage Orders cover requirements for:

How Many Wage Orders Do I Need to Post?

In most circumstances, an employer needs to post only one Wage Order that applies to all of its non-exempt employees, based on the organization's primary business purpose. For example, suppose you have a mid-sized manufacturing firm that employs clerical workers, janitors, and even cafeteria workers in addition to employees engaged directly in manufacturing activities. If the entire company works under one management structure and the company's main business purpose is manufacturing, everyone in the company falls under Wage Order 1 (Manufacturing Industry).

When Do I Need More Than One Wage Order?

If your organization has more than one business unit, and those units function under separate management and have different primary business purposes, a different Wage Order may be required for each of the business units. For example, if a department store operates a restaurant on its premises that functions as a separate corporate entity, the department store itself is governed by Wage Order 7 (Mercantile Industry), but the restaurant is governed by Wage Order 5 (Public Housekeeping Industry). If you suspect that you have a multipurpose business, run the Wage Order Wizard once for each operational unit in your organization, and check with your attorney to make sure that you have interpreted your situation correctly.

What's the Difference Between Industry Orders and Occupation Orders?

Both categories of Wage Orders serve basically the same purpose, but when determining which Wage Order is appropriate for your organization, you must first determine if any of the Industry Wage Orders apply. The Industry Wage Orders are:

If an Industry Wage Order applies to the main business purpose of your organization, that Wage Order applies to all of your non-exempt employees. If not, however, you need to see if an Occupation Wage Order applies. The Occupation Wage Orders are:

• 4: Professional, Technical, Clerical, Mechanical, and Similar Occupations
• 14: Agricultural Occupations
• 15: Household Occupations
• 16: Occupations in the Construction, Drilling, Logging, and Mining Industries
• 17: Miscellaneous Employees*

* Currently the Division of Labor Standards Enforcement has not identified any occupations that meet the definition of miscellaneous employees.

In summary, you must post at least one Wage Order (plus its accompanying Wage Order Summary); in most cases, you only need one Wage Order. If you have any doubt, consult your attorney, or if you are a California Chamber member, contact the Labor Law Helpline, to make sure you have selected the correct Wage Order(s) for your business.

What Else Do I Need to Know?

Wage Order classifications are more complex for businesses involved in processing agricultural products. For example:

• If you are a farmer engaged in processing your own lettuce crop in a moving packing plant on your own farm, you would use Wage Order 13 (Industries Preparing Agricultural Products for Market, on the Farm);
• If you process another farmer's lettuce crop, you would use Wage Order 8 (Industries Handling Products after Harvest); or
• If you don't process your own lettuce in a moving plant or permanent structure on your own farm, but merely harvest and field-pack it, you would use Wage Order 14 (Agricultural Occupations).

So, pay close attention to the definitions and examples provided in the Wage Order Wizard, and consult with your attorney or the Labor Law Helpline to be certain that you have selected the correct Wage Order.