California Minimum Wage to Increase from $15.50 to $16 Per Hour on January 1, 2024.

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Effective January 1, 2024, the minimum wage for all California hourly employees increases to $16 per hour, up from $15.50 per hour that was effective January 1, 2023.

The federal minimum wage for 2024 is still $7.25, a rate unchanged since it became effective on July 24, 2009.

California minimum wage rates apply to Ventura County residents.

The City of Los Angeles minimum wage rate has been $16.78 per hour since July 1, 2023. Each year, the minimum wage is adjusted for inflation; the adjusted rate is announced on February 1st of each year and becomes effective on July 1st of each year. The city’s 2024 minimum wage rate increases to $____ (TBA) effective July 1, 2024. See wagesla.lacity.org.

The County of Los Angeles minimum wage rate became $16.90 per hour effective July 1, 2023 and increases to $____ (TBA) per hour starting July 1, 2024. See dcba.lacounty.gov/minimum-wage-for-businesses. This rate applies to employees in unincorporated areas of Los Angeles County.

But WAIT…you may have heard that hourly employees of national fast food eateries in California will receive minimum wage rate of $20 beginning April 1, 2024.

Minimum Wage of National Fast Food Chain Workers in Calfiornia to Increase to $20 on April 1, 2024

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Assembly Bill 1228 was signed by Governor Newsom on September 28, 2023. The bill authorizes, among other things, an increase in the minimum wage of employees at national fast food restaurants to $20 on April 1, 2024.

That’s a substantial increase in the current minimum wage for fast food workers, which as of January 1, 2024 will be $16 for California hourly employees (a 25% increase) and as of July 1, 2023 has been $16.90 for hourly employees in unincorporated Los Angeles County (an 18% increase). Ventura County hourly employees currently fall under the California minimum wage rate.

So does this mean that ALL fast food workers in California will automatically start earning at least $20 per hour next April? No. It applies to workers at “national fast food chains,” which is defined as “a set of limited-service restaurants consisting of more than 60 establishments nationally that share a common brand, or that are characterized by standardized options for decor, marketing, packaging, products, and services, and which are primarily engaged in providing food and beverages for immediate consumption on or off premises where patrons generally order or select items and pay before consuming, with limited or no table service."

Bakeries gets a break. “Fast food restaurant” shall not include an establishment that on September 15, 2023, operates a bakery that produces for sale on the establishment’s premises bread, as defined under Part 136 of Subchapter B of Chapter I of Title 21 of the Code of Federal Regulations, so long as it continues to operate such a bakery. This exemption applies only where the establishment produces for sale bread as a stand-alone menu item, and does not apply if the bread is available for sale solely as part of another menu item."

AB 1228 goes on to state that the hourly minimum wage may increase annually by the lesser of 3.5% or inflation over the the most recent July 1 to June 30 period.

So some additional questions come to mind:

  1. If a chain has 60+ establishments but they are only based in California, does this represent a “national fast food chain” under AB 1228? My suspicion is yes.

  2. How will AB 1228 impact fast food eateries with 59 or less locations? Why would someone want to continue earning $15.50 at a smaller chain when they could work at Taco Bell or Burger King and earn $20? It would seem that although the law is written for larger chains, clearly it will impact all fast food eateries in the state.

  3. How will AB 1228 impact other minimum wage jobs? As with smaller eateries, it would seem that all minimum wage jobs will be indirectly impacted by AB 1228. A $4 per hour difference between entry level fast food jobs and other minimum wage jobs is significant.

Read the entire bill at https://leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill_id=202320240AB1228.

Tax Breaks to Pay For College

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Section 529 plans give taxpayers the ability to invest for college and use the funds for college expenses at some point in the future tax-free.

Do you get a tax deduction for contributions to 529 plans? Not on the federal return. Your tax savings comes in the future, as any income generated by the investments made can be distributed tax-free in the future, as long as they are used for qualified educational purposes (defined below).

Some states do offer a tax deduction or tax credit on all or a portion of contributions you make to 529 plans. However, California (along with Kentucky, North Carolina, Delaware, New Jersey and Maine) do not offer such deductions or credits. That said, California does conform to federal law in that distributions used for qualified purposes are not taxed.

What are “qualified” uses of 529 plan funds? Tuition, room and board*, books, supplies, fees and computers, software and internet access

*Room and board includes the cost of housing and a meal plan at a college or university, be it on campus or off campus. However, the allowable amount under a 529 plan cannot exceed what the school’s published “cost of attendance” is. You can typically find this on a university’s website.

You have to be enrolled in school at least half-time to qualify to use 529 plan funds.

Expenses that do NOT qualify for reimbursement under a 529 Plan include travel expenses, health insurance and personal living expenses.

There are no income limits for funding the plan accounts.

What is the maximum you can put into a 529 plan? The California Scholarshare plan has an overall maximum account balance limit of $529,000, which applies to all accounts opened for a beneficiary. See www.scholarshare529.com for more information.

Can grandparents and other relatives contribute to my kids’ 529 plans? Absolutely! They do not get any tax benefits for these contributions and they are considered to be gifts*, but like with other contributions, they grow tax free, as long as the funds are eventually used for college or even a trade school or vocational school, as long as that school is eligible to participate in student aid programs offered by the Department of Education.

*The gift tax exclusion in 2023 is $17,000, up from $16,000 in 2022. That means you can give up to $17,000 per person without filing a federal gift tax return (IRS Form 709).

What happens if I can’t use the money in a 529 plan? First off, you can transfer funds from one kid’s 529 plan to another’s if you need to. That said, if you are unable to use the funds for qualified education, you can always take the money out and pay taxes on the earnings, plus a 10% penalty. And there are certain exceptions to the penalty too.

American Opportunity Credit

The American Opportunity Credit (AOC) can provide tax credits of up to $2,500 per student for the first 4 years of college. You cannot claim it for more than 4 years.

Up to 40% of the credit is refundable; the other 60% must be applied against your tax liability. The maximum credits is derived as follows: 100% of the first $2,000 in qualified expenses and 25% of the next $2,000 of qualified expenses.

Qualified expenses for the AOC includes tuition, books and fees, but DOES NOT include room and board that is allowed to be paid with 529 plan funds.

The challenge with this credit is that it phases out for single taxpayers with modified adjusted gross income between $80,000 and $90,000 and for married taxpayers, $160,000 and $180,000. If this is the case, something to consider for tax planning purposes is for the taxpayer to NOT claim the student as a dependent on their return (even if entitled to), and let the student claim the AOC credit.

Lifetime Learning Credit

If you have already used 4 years of AOC credit, you may qualify for the Lifetime Learning Credit (LLC), which has no limit on the number of years to claim the credit. However, there are even lower income phaseout levels for the LLC, phasing out between $59,000 and $69,000 in modified adjusted gross income for single and $118,000 to $138,000 for married taxpayers.

Additionally, the LLC is not a refundable credit. If you don’t owe taxes, you won’t be able to use the credit. The credit is calculated at 20% of the first $10,000 in qualified education expenses. Consistent with the AOC, the student can claim the credit if the parent does not claim the student on their tax return. However, if the student owes no taxes, there’s no use to this credit.

Qualified expenses for the LLC are the same as for the AOC, except course material expenses MUST be paid to the university as a condition of enrollment.

Scholarships

Keep in mind that any scholarships and grants received must be applied against the tuition and other expenses incurred. In other words, you cannot use 529 plan funds or obtain a education tax credit on expenses paid for with scholarship funds. That would be double dipping!

Speaking of paying for college, HERE IS A LINK to an article on how to complete a FAFSA form.

Veterans Day Services in Ventura County

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Veterans Day is celebrated as a Federal holiday on the 11th day of November in honor of those who have served in the U.S. Armed Forces.

It coincides with other holidays such as Armistice Day and Remembrance Day, which are celebrated in other parts of the world and also mark the anniversary of the end of World War I, which formally ended at the 11th hour of the 11th day of the 11th month of 1918, when Armistice with Germany took effect.

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Vietnam veteran David Stull stands guard while supporting a flagpole carrying the American flag at the Garden of Valor at Valley Oaks Memorial Park in Westlake Village. This was one of three 30 minute shifts he stood guard. November 1984 photo by Scott Harrison/The News Chronicle

Back in the 1980s, Conejo Valley residents would observe a 24-hour vigil during the Veterans Day holiday. I took photos several times, but this 1984 photo at dusk remains my favorite. The current full name of Valley Oaks is Pierce Brothers Valley Oaks Memorial Park. The flame is still burning at the Garden of Valor.

Ride On Therapeutic Horsemanship in Newbury Park Serves the Disabled

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Ride On Therapeutic Horsemanship teaches horseback riding to children and adults with physical and mental disabilities. Founded in 1994, Ride On has given over 100,000 safe, effective and individualized lessons and therapy treatments. Serving the Conejo Valley, Ride On's Newbury Park site is operated in partnership with the Conejo Recreation and Park District. In the San Fernando Valley, Chatsworth is home to a newer facility and 3 acre ranch.

Ride On serves over 200 riders each week at its 13 acre Newbury Park location at 401 Ronel Court and its Chatsworth location. The minimum age for therapeutic riding is 4 years old and all disabilities are served, both mental and physical.

Therapeutic riding is a unique combination of sport, recreation and education. Specially trained NARHA qualified instructors use their knowledge of disabilities to teach horsemanship skills to riders with varying ability levels. A typical therapeutic riding lesson involves safety on and around horses, warm up exercises, games and riding skills including equitation and obstacle. Increased balance, strength and self esteem are some of the benefihts of this wonderful recreational activity.

Ride On also offers hippotherapy for clients as young as 2 years old. Hippotherapy is the use of the horse’s movement for rehabilitation. Licensed Therapists properly position the patient on the horse, analyze the patient’s response and direct the horse’s movement to achieve specific patient treatment goals. Hippotherapy facilitates improved balance, posture, mobility, communication and behavior for patients of all ages and many disabilities.

Ride On’s primary funding sources are income from lessons, grants, special events and private donations. Ride On is a 501(c)(3) charitable organization. Visit www.rideon.org or call 805.375.9078 for more information.

Daylight Saving Time Ends on the First Sunday of November

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Daylight Saving Time ends on the first Sunday of November each year in the U.S. (with the exception of Arizona and Hawaii). In 2023, that will be Sunday, November 5th at 2 a.m.

At 1:59:59 a.m. on that Sunday, your clocks will revert back to 1 a.m. Yes! FALL BACK!! An extra hour of sleep!

The Energy Policy Act of 2005 gave us an extra month of DST by starting DST 3 weeks earlier and ending it one week later.

For my more precise readers, it is officially called Daylight Saving (not Savings) Time. So if you want to annoy your friends, correct them any time they call it Daylight SavingS time.

Also as one website I found mentioned, Daylight Saving Time is technically inaccurate, since we don't really gain daylight. It would more appropriately be called Daylight Shifting Time but I don't see that being a high priority initiative.

Before the adoption of standard time zones in the United States, cities, towns, and communities set their own local times based on the sun’s position. In 1883, railroad companies adopted a system of standard time to synchronize movement and trade across the nation. The U.S. adopted an official system of standard time in 1918.

The Standard Time Act of 1918 incorporated a DST mandate from the last Sunday in March to the last Sunday in October. Congress repealed the DST mandate in 1919. President Woodrow Wilson vetoed the repeal. Congress overrode his veto.

Beginning in 1920, DST was a local state/city option. Here’s the history of DST legislation in California:

1930: Prop 7 was but on the ballot to implement DST at 2 a.m. on the last Sunday in April until 2 a.m. on the last Sunday in September. The initiative failed.

1940: Prop 5 was put on the ballot to implement DST. The initiative failed again.

1949: Third time’s a charm. This time it passed.

1962: Prop 6 was passed, which extended DST from the last Sunday in September to the last Sunday in October.

2018: Californians voted in favor of Proposition 7 by a margin of 59.75% to 40.25%. Voting in favor of the proposition allowed the California State Legislature to change the DST period by a 2/3rds vote and to establish permanent, year-round DST in California by a 2/3rds vote if federal law is changed to allow for permanent DST.

Why the holdup?

The holdup is at the federal level, not the state level: Voting yes on Prop 7 was just the first step in the process. California is one of 14 states that introduced legislation in 2019 to shift to permanent daylight saving time. States cannot move forward with permanent daylight saving time without authorization from the federal government. As of November 2019, there were 4 bills awaiting action in Congress that would allow California to be on permanent DST. These are:

H.R. 1556 “Sunshine Protection Act of 2019,” introduced to the House in 2018 and 2019 but failed. It was reintroduced in 2021 and was referred to the Subcommittee on Consumer Protection and Commerce. The bill makes DST the new, permanent standard time. States with areas exempt from DST may choose the standard time for those areas. The bill was pending a hearing in the House Energy and Commerce Committee. S. 670 and now 623 is an identical bill in the Senate, which passed by unanimous consent on March 15, 2022.

H.R. 1601 “Daylight Act” and H.R. 2389 “To allow states to elect to observe year-round DST” both authorize states to shift to permanent daylight saving time and are pending hearings in the House Energy and Commerce Committee. Congress had until December 2020 to act on these bills. They appear to have died on the vine.

Facts and Figures About the Ventura County Call Box Program

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2023 UPDATE: This was originally posted in 2013 and updated in 2016. The Ventura County Transportation Commission (VCTC) provided an update of the Ventura County Call Box program at its April 7, 2023 meeting. There are currently 429 emergency call boxes in Ventura County, averaging 1,200 calls for motorist assistance per year, down from 3,000 calls per year in 2016. There were 1,131 call box calls in 2022, down from 1,179 in 2020. In 2022, the call boxes were upgraded from 3G to 4G/LTE cellular technology.

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Ever wonder about the call boxes on the side of the highways around town? Currently, 29 of the state's 58 counties have call box programs.  Statewide, there are 15,000 call boxes, lining some 6,300 miles of California highways. Call boxes throughout California generate more than 100,000 calls per month.

Costs associated with the call box program are paid for by a $1 annual fee included in the County/District Fees shown on your DMV vehicle registration notice.

Caltrans, the California Highway Patrol and regional "SAFE" ("Service Authority for Freeways and Expressways") agencies jointly operate the program. In Ventura County, the Ventura County Transportation Commission (VCTC) oversees the call box program.

Since 1985, the goal of SAFE is to quickly identify and respond to freeway incidents such as breakdowns and accidents in order to minimize their impacts in terms of congestion, public safety and air quality, and to increase the reliability of the freeway system and better manage traffic flow.

There are currently (as of September 2016) 560 active call boxes in Ventura County, roughly 40% on Highway 101, 20% on Highway 126, 15% on Highway 118 and the remainder on PCH, SR 23 and Highways 33, 34 and 150.

So the question most of you may have is, does anyone actually use call boxes given the proliferation of cell phones? The answer is...yes...but the numbers have dropped dramatically over the years.

Over the last five years, an average of roughly 3,000 calls for assistance have been made from call boxes in Ventura County each year. While this is down dramatically from the 17,000 calls made in the year 2000, they are still being used.

In recent years, 420 call boxes have been upgraded from 2G to 3G service. The remaining 141 call boxes will be removed in 2016-2017, with an anticipated cost savings of $380,000 over the next five years. This is based on a review of the SAFE program presented to the Ventura County Transportation Commission in its September 9, 2016 meeting.

Visit the VCTC website at www.goventura.org to learn more about transportation options in Ventura County.

Note: Originally posted in 2013. Updated in 2016.