California Industrial Welfare Commission (IWC) Wage Order #7 Mercantile Industry Poster
The Industrial Welfare Commission (IWC) Wage Order #7 Mercantile Industry is a California general labor law poster poster provided for businesses by the California Department Of Industrial Relations. This notification is required for some employers, such as employers in the mercantile industry.
This mandatory notice contains ten pages of information dedicated to the laws of wages, hours, and working conditions in the mercantile industry. All ten pages are required to be posted. The notice includes information relative to applicability and exemption of the order, legal definitions, hours and days of work definitions, minimum wages, reporting procedures, disability clauses, records procedures, rest and recover periods, and overall satisfactory working conditions required by the state of California.
OFFICIAL N OTICE INDUSTRIA L WELFARE COMMISSION ORDER NO . 7-2001 REGUL ATING W AGES , HOUR S AND WORKING CONDITI ONS IN THE MERC ANTILE INDUST RY Ef fec tive J uly 1, 2014 as amended Sections 4(A) and 10(C) amended and republished by the Department of Industrial Relations, effective January 1, 2019 pursuant to SB 3, Chapter 4, Statutes of 2016 and section 1182.13 of the Labor Code This Order Must Be Poste d Where Employee s Can Rea d It Easily IWC FORM 1107 (Rev.11/2018) OSP 06 98765 ? 2 •Please Post With This Side Showing • OFFICIAL NOTICE Effective July 1, 2014 as amended Sections 4(A) and 10(C) amended and republished by the Department of Industrial Relations, effective January 1, 2019, pursuant to SB 3, Chapter 4, Statutes of 2016 and section 1182.13 of the Labor Code INDUSTRIAL WELFARE COMMISSION ORDER NO. 7-2 001 REGULATING WAGES, HOURS AND WORKING CONDITIONS IN THE MERCANTILE INDUSTRY TAKE NOTICE: To employers and representativ es of persons working in industries and occupations in the State of California: The Department of Industrial Relations amends and republishes the minimum wage and meals and lodging credits in the Industrial Welfare Commission ?s Orders as a result of legislation enacted (SB 3, Ch. 4, Stats of 2016 amending section 1182.12 of the California Labor Code ), and pursuant to section 1182.13 o f the California Labor Code. The amendments and republishing make no other changes to the IWC ?s Orders. 1. APPLICABILITY OF ORDER This order shall apply to all persons employed in the mercantile industry whether paid on a time, piece rate, c ommission, or other basis , except that: (A) Prov isions of Sections 3 through 12 of this order shall not appl y to persons employ ed in administr ative, exec utive, or pr ofessional capacities. The following requirements shall apply in dete rmining whether an employee ?s duties meet the test to qualify for an ex emption from those sections: (1) Executiv e Exemption. A person employed in an executive capacity means any employee: (a) Whose duties and responsibilities inv olve the management of the enterpr ise in which he/she is employ ed or of a customa rily recogniz ed department or subdivision thereof; and (b) Who customarily and regularly directs the work of two or more other employees therein; and (c) Who has the authority to hire or fire other employ ees or whose suggestions and recommendations as to the hi ring or fi ring and as to the advancement and promoti on or any other change of status of other employ ees will be given particular weight; and (d) Who customarily and regularly exercises discretion and independent judgment; and (e) Who is primar ily engaged in duties which meet the test of the ex emption. The activities constituting exempt wor k and non-ex empt work shall be constr ued in the same manner as such items are constr ued in the following regulations under the Fair Labor Standards Act effective as of the date of this order: 29 C.F.R. Sections 541.102, 541.104 -111, a nd 541.115- 116. Exempt work shall include, f or example, all work that is directly and closely related to exempt work and work which is proper ly vi ewed as a means f or carrying out exempt functions. The work actually performed by the employ ee during the course of the workweek must, first and foremost, be examined and the amount of time the employ ee spends on such wor k, together with the employ er ?s realistic expectations and the realistic requirements of the jo b, shall be considered in determining whether the employ ee satisfies this requirement. (f) Such an employ ee must also earn a monthly salary equivalent to no less than two (2) times the state minimum w age for full-time employment. Full-time employment is defined in Labor Code Section 515(c) as 40 hours per week. (2) Administr ative E xemption. A person employed in an administr ative capacity means any employ ee:(a) Whose duties and responsibilities inv olve either: (i) The performance of office or non- manual work directly related to management policies or gener al business operations of his/her employer or his/her employ er ?s customers; or (ii) The performance of functions in the administration of a school system, or educational establishment or institution, or of a department or subdivision thereof, in work directly related to the academic instruction or training carried on therein; and ( b) Who customarily and regularly exercises discretion and independent judgment; and (c) Who regular ly and directly assists a proprietor, or an employ ee employ ed in a bona fide exec utive or administr ative capacity (as such terms are defined for purposes of this section); or (d) Who performs under only general supervision work along specialized or technical lines requiring special training, experience, or knowledge; or (e) Who executes under only general supervision special assignments and tasks; and (f) Who is primar ily engaged in duties that meet the test of the ex emption. The activities constituting exempt wor k and non-ex empt work shall be construed in the same manner as such terms are constr ued in the following regulations under the Fair Labor Standards Act effective as of the date of this order: 29 C.F.R. Sections 541.201-205, 541.207 -208, and 541.210, and 541.215. E xempt work shall include, f or example, all work that is directly and closely related to exempt work and work which is proper ly vi ew ed as a means f or carrying out ex empt functions. The work actually per formed by the employee during the course o f the workw eek must, first and foremost, be examined and the amount of time the employ ee spends on such work, together with the ? 3 employ er ?s realistic expectations and the realistic requirements of the jo b, shall be considered in determining whether the employ ee satisfies this requirement. (g) Such employ ee must also ea rn a monthly salary equivalent to no less than two (2) times the state minim um w age for full-time employment. Full ?time employment is defined in Labor Code Section 515(c) as 40 hours per week. (3) Professional Exemption. A person employ ed in a professional capacity means any employ ee who meets all of the following requirements: (a) Who is licensed or ce rtified by the State of California and is primar ily engaged in the practice of one of the following recognized professions: law, medicine, dentistry , optometry, architecture, engineering, teaching, or accounting; or (b) Who is primar ily engaged in an occupation commonly recogniz ed as a lear ned or artistic profession. F or the pu r- poses of this subsection, ? O H Drned or artistic prof H V V L R Q ? means an employ ee who is primarily engaged in the performance of: (i) Work requiring knowledge of an ad vanced type in a field or science or learning customar ily acquired by a pro- longed course of specializ ed intellectual instruction and study, as distinguished from a general academic education and from an apprenticeship, and from training in the per formance of routine mental, manual, or physical processes, or work that is an essential part of or necessarily incident to any of the abov e work; or (ii) Work that is original and creative in character in a recogniz ed field of artistic endeav or (as opposed to work which can be produced by a person endowed with general ma nual or intellectual ability and training), and the result of which de - pends primar ily on the invention, imagination, or talent of the employ ee or work that is an essential pa rt of or necessarily incident to any of the abov e work; and (iii) Whose work is predominantly intellectual and varied in character (as opposed to routine mental, manual, mechanical, or physical wor k) and is of such character that the output produced or the result accomplished cannot be standardiz ed in relation to a giv en period of time. (c) Who customar ily and regular ly ex ercises discretion and independent judgment in the per formance of duties set forth in subpara graphs (a) and (b). (d) Who ea rns a monthly salary equivalent to no less than two (2) times the state minim um wage f or full-time employment. Full-time employment as defined in Labor Code Section 515(c) as 40 hours per week. (e) Subparagraph (b) above is intended to be construed in accordance with the following provisions of f ederal law as they existed as of the date of this w age order: 29 C.F.R. Sections 541.207, 541.301(a) -(d), 541.302, 541.306, 541.307, 541.308, and 541.310. (f) Notwithstanding the pr ovisions of this subpara graph, pharmacists employ ed to engage in the practice of pharmacy, and registered nurses employ ed to engage in the practice of nursing, shall not be considered exempt professional employ ee s, nor shall they be considered exempt from cover age for the pu rposes of this subpara graph unless they individually meet the criteria established for exemption as executive or administr ative employ ee s. (g) Subpara graph (f) above shall not apply to the following advanced practice nurses: (i) Ce rtified nurse midwiv es who are primar ily engaged in per forming duties f or which certification is required pursuant to Article 2.5 (commencing with Section 2746) of Chapter 6 of Division 2 of the Business and Professions Code. (ii)Certified nurse anesthetists who are primari ly engaged in per forming duties f or which certification is required pursuant to Article 7 (commencing with Section 2825) of Chapter 6 of Division 2 of the Business and Professions Code. (iii)Certified nurse practitioners who are primar ily engaged in per forming duties f or which certification is required pursuant to Article 8 (commencing with Section 2834) of Chapter 6 of Division 2 of the Business and Professions Code. (iv) Nothing in this subpara graph shall exempt the occupations set for th in clauses (i), (ii), and (iii) from meeting the requirements of subsection 1(A)(3)(a) ?(d) above. (h) Except, as pr ovided in subpara graph (i), an employ ee in the computer software field who is paid on an hour ly basis shall be exempt, if all of the following apply: (i) The employ ee is primar ily engaged in work that is intellectual or creative and that requires the ex ercise of discretion and independent judgment. (ii) The employee is primarily engaged in duties that consist of one or more of the following: ? The application of systems analysis techniques and procedures, including consulting with users, to determine hardw are, softw are, or system functional specifications. ? The design, development, documentation, analysis, creation, testing, or modification of computer systems or pro gram s, including prototypes, based on and related to user or system design specifications. ? The documentation, testing, creation, or modification of computer pro grams related to the design of software or hardware for computer operating systems. (iii) The employee is hi ghly skilled and is proficient in the theoretical and practical application of highly specialized information to computer systems analysis, pro gramming, and software engineering. A job title shall not be determinative of the applicability of this exemption. (iv) The employ ee ?s hou rly rate of pay is not less than forty-one dollars ($41.00). The Office of Policy, Research and Legislation shall adjust this pa y rate on October 1 of each year to be effective on Jan ua ry 1 of the following year by an amount equal to the percentage increase in the California Consumer Price Inde x for Urban Wage Earners and Clerical Work ers.* (i) The exemption provided in subpara graph (h) does not apply to an employee if any of the following apply: (i) The employ ee is a trainee or employ ee in an ent ry-lev el position who is learning to become proficient in ? 4 the theoretical and practical application of highly specializ ed in formation to computer systems analysis, pro gramming, and software engineering. * Pursuant to Labor Code section 515.5, subdivision (a)(4), the Office of Policy, Research and Legislation, Department of Industrial Relations, has adjusted the minim um hou rly rate of pay specified in this subdivision to be $49.77, ef fective Jan ua ry 1, 2007. This hour ly rate of pay is adjusted on October 1 of each y ear to be ef fective on Janua ry 1, of the following y ea r, and may be obtained at www.dir.ca.gov/IWC or by mail from the Department of Industrial Relations. (ii) The employ ee is in a computer-related occupation b ut has not attained the lev el of skill and expertise necessary to work independently and without close supervision. (iii) The employee is engaged in the operation of computers or in the ma nufacture, repair, or maintenance of computer hardware and related equipment. (iv) The employee is an engineer , drafter, machinist, or other professional whose work is highly dependent upon or facilitated by the use of computers and computer software pro grams and who is skilled in computer-aided design softw are, including CAD/CAM, but who is not in a computer systems analysis or pro gramming occupation. (v) The employ ee is a writer engaged in writing material, including box labels, product descriptions, documentation, promotional material, setup and installation instructions, and other similar written information, either f or print or f or on screen media or who writes or pr ovides content material intended to be read by customers, subscribers, or visitors to computer-related media such as the Wor ld Wide Web or CD-R OMs. (vi) The employ ee is engaged in any of the activities set for th in subpara graph (h) f or the pu rpose of creating imager y for effects used in the motion picture , television, or theatrical industry. (B) Except as pr ovided in Sections 1, 2, 4, 10, and 20, the pr ovisions of this order shall not apply to any employees directly employ ed by the State or any political subdivision thereof, including any city, county, or special district. (C) The provisions of this order shall not apply to outside salespersons. (D) The provisions of this order shall not apply to any individual who is the parent, spouse, child, or legally adopted child or the employer. (E) The provisions of this order shall not apply to any individual pa rticipating in a national service pro gram, such as AmeriCorps, carried out using assistance provided under Section 12571 of Title 42 of the United States Code. (See Stats. 2000, ch. 365, amending Labor Code Section 1171.) 2. DEFINITIONS (A) An ? D O W H rnati ve workw eek V F K H G X O H ? means any regular ly scheduled workw eek requiring an employee to work more than eight (8) hours in a 24-hour period. (B) ? &