Katie Burke at the San Francisco Business Times recently compiled a list of six changes that impact small business owners in San Francisco in an excellent article. This is critical information that will also impact Oakland-based businesses in 2015. You can read the full article for additional details. Here is a summary of the changes and when they will be in effect.
First, minimum wage increases
For all businesses that employ workers, San Francisco’s minimum wage is increasing to $11.05 per hour, and Oakland’s minimum wage will become $12.25 per hour on March 1, 2015. This increase is a positive step for workers. However, it’s critical to prepare for this change, because business cash flow will be impacted.
Second, Retail Workers Bill of Rights
The San Francisco Board of Supervisors passed the first ever Retail Workers Bill of Rights, which impacts primarily restaurant and retail workers. This new legislation goes into effect May 1, 2015, and may impact operations of local, independent employers, because workers will now receive compensation for last-minute changes in schedule and hours.
Third, liability with contractors
If your business has 25 or more employees and uses contractors, your liability for disputed pay may have changed.
Fourth, Affordable Care Act and W-2s
Your W-2s now must include how much you pay for group health plans, if you file 250 or more W-2s each year.
Fifth, Affordable Care Act penalties kick-in for employers with 100+ workers
This means that companies need to start offering health insurance benefits to at least 70% of their full-time workers by January 1, 2015. By January 1, 2016, 95% of their workforce must be covered.
Sixth, statewide paid sick leave is implemented across the Bay Area
San Francisco has already enacted this rule (after 30-days of work all employees must receive paid sick leave), but the rest of Bay Area employers will be mandated starting in January.
It’s time to revisit your business plan and cash flow to account for these changes. OBDC’s team is here to support our borrowers, and you can email firstname.lastname@example.org to set up a free consultation.