Three Conversations PEOs Must Have With Their Clients About Wages
PEOs should address wage information with their clients.

Minimum Wage. It’s a hot topic on everyone’s mind right now. From employer to employee, the new rules and regulations affect most people. But how do you help your clients understand the impact of new rules and regulations? There are a few key items you need to be discussing with clients:
- Exempt, non-exempt, and salary. If an employee is salaried, they are not automatically considered exempt. If an employee is non-exempt and salaried, they are entitled to overtime pay. More on exempt vs. non-exempt workers.
- Wage is determined differently depending on what an employee does. For example, in New York, New York wage is different if an employee is a computer professional or a white-collar worker. If your clients pay hospitality workers, rates will be different depending on whether or not an employee receives tips.
- Wage is different based on location - and zip codes aren’t enough. Jurisdictions like to make it complicated. For example, in Cook County, Illinois districts are opting out of the minimum wage rules passed for the entire county. In Berkeley, California there are minimum wage requirements that apply to the city boundaries only, but the zip code for Berkeley extends past the city limits. Read more about why zip codes aren’t accurate enough to determine wages and taxes here.
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