California Industrial Welfare Commission (IWC) Wage Order #7 Mercantile Industry Poster

OFFICIAL NOTICE  	
INDUSTRIAL  WELFARE COMMISSION 
ORDER  NO. 7-2001  
REGULATING  
WAGES,  HOURS AND WORKING CONDITIONS IN  THE 	
MERCANTILE  INDUSTRY  	
Effective July 1, 2002  as amended  	
 	
Sections 4(A) and 10(C) amended and republished by the Department of  Industrial 
Relations, effective January 1, 2023  pursuant to SB 3, Chapter 4, Statutes of 2016  and 
section 1182.13 of the Labor Code  	
 	
This Order  Must  Be Posted  Where  Employees  Can  Read  It  Easily  	
 
 
 
 
 
 
 
 
 
 
 	
IWC FORM 1107  (Rev.11/2022 ) 
OSP 06  98765

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TAKE NOTICE:  To  employers  and  representatives  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 of 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, commission,  or	 	
other basis, except  that:  	
(A) 	 Provisions  of Sections   3 through  12 of this  order  shall  not  apply  to  persons  employed  in administrative,  executive,  or	 	
professional  capacities.  The  following  requirements  shall  apply  in  determining  whether  an  employee’s  duties  meet  the  test to	 	
qualify for an exemption from those  sections: 	
(1) 	 Executive Exemption. A person employed in an executive capacity means any  employee:  
(a) 	 Whose duties and responsibilities  involve the management of the enterprise in which he/she is employed or of   a	 	
customarily recognized 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  employees  or  whose  suggestions  and  recommendations  as  to  the  hiring	 	
or firing  and as to  the  advancement  and  promotion  or any  other  change  of status  of  other  employees  will  be  given  particular  weight;	 	
and 	
(d)  	 Who customarily and regularly exercises discretion and independent judgment;  and 	
(e)  	 Who is primarily engaged in duties which meet the test of the exemption. The activities constituting  exempt work	 	
and non- exempt work shall be construed in the same manner as such items are construed 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, and  541.115- 116.	 	
Exempt work  shall  include,  for  example,  all  work  that  is  directly  and  closely  related to exempt  work and  work  which  is  properly	 	
viewed  as  a  means  for  carrying  out  exempt  functions.  The work  actually  performed  by the  employee  during the course  of the	 	
workweek  must,  first and  foremost,  be  examined  and the  amount  of time  the employee  spends on  such  work,  together  with  the	 	
employer’s  realistic expectations and the realistic requirements of the job,  shall be considered in determining whether the	 employee 
satisfies this  requirement.  	
(f) 	 Such  an employee  must also  earn  a  monthly  salary  equivalent  to  no  less  than  two (2)  times  the  state  minimum	 	
wage  for full -time  employment.  Full -time  employment  is defined  in Labor  Code  Section  515(c)  as  40  hours  per  week. 	
(2) 	 Administrative Exemption. A person employed in an administrative capacity means any  employee:  
(a) 	 Whose duties and responsibilities involve  either:  
(i) 	 The performance of office or non- manual work directly related to management policies or general  business	 	
operations of his/her employer or his/her employer’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  regularly  and  directly  assists a  proprietor,  or  an  employee  employed in  a  bona  fide executive  or administrative	 	
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 primarily  engaged  in duties  that  meet  the  test of  the  exemption.  The  activities  constituting  exempt work	 	
and non- exempt work shall be construed in the same manner as such terms are construed 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.   Exempt work  shall  include,  for  example,  all  work  that  is  directly  and  closely  related  to exempt  work and  work  which  is	
 	
properly  viewed as  a means for  carrying  out exempt functions.  The  work  actually  performed by  the employee during the course of	 	
 	 	
  	 	 	 	 	 	
 	  	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	
 	  	 	 	 	  	  	 	 	 	 	 	
 	 	 	 	
INDUSTRIAL   WELFARE  COMMISSION 
ORDER  NO.  7-2001  
REGUL ATING  
WAGES,  HOURS AND  WORKING  CONDITIONS  IN  THE  
MERCANTILE	 INDUSTRY

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(i) 	The  exemption  provided in subparagraph  (h) does  not  apply  to  an  employee  if any  of the  following  apply:  
(i) 	The  employee  is a trainee  or employee  in an  entry -level  position  who is  learning  to become  proficient  in  
the   theoretical  and  practical  application  of highly  specialized  information  to computer  systems  analysis, programming,  and	
 	
software  engineering.    	(ii) 	The  employee  is in a  computer -related  occupation  but has  not  attained  the level  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  manufacture,  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  programs  and  who is  skilled  in  computer -aided  design  software,	 	
including CAD/CAM, but who is not in a computer systems analysis or programming  occupation. 	
(v) 	 The employee 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  for  print  or	 	
for  on  screen  media or who  writes  or  provides  content  material  intended  to be  read  by  customers,  subscribers,  or  visitors  to	 	
computer -related media  such as the  World Wide  Web  or CD -ROMs.  	
(vi) 	 The  employee  is engaged  in any  of  the  activities  set  forth  in subparagraph  (h) for the  purpose  of creating	 	
imagery for effects used in the motion picture, television, or theatrical  industry.  	
(B) 	 Except as provided in Sections 1, 2, 4, 10, and 20, the provisions of this order shall not apply to any employees  directly	 	
employed 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  participating  in a  national  service  program,  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	  “a	lte rnat iv e	 w ork week	 schedul	e” m eans	 any	 regul arly	 scheduled	 w ork week	 requ iring	 an	 e m plo yee	 to w ork	 m ore	 than 
e ight	
 (8)	 hou rs	 in a 2 4-hour	 p eriod.	 	
(B)  “C ommissi	on”	 m eans	 the	 In dustr ial	 Welf are	 Com mission	 of the	 State	 of Ca li f o rn ia.	 	
(C)  	“Div isi	on”	 m eans	 the	 Di vision	 of Labor	 Standards	 E nforc em ent	 of the	 State	 of Ca li f o rn ia.	 	
(D)  	“Emplo	y ” m eans	 to engag e,	 su ffe r,	 or per mit	 to work.	 	
(E)  	“Emplo ye e ”	 m eans	 any	 per son	 e m plo yed	 b y an	 e m plo ye r,	 and	 in cludes	 a ny	 les see	 who	 is charged	 r ent,	 o r who	 pays	 rent 
f or	
 a chai r,	 booth,	 or spa ce;	 a nd	 	
(1)  	 Who does not use his/her own funds to purchase requisite supplies;  and  	
(2) 	 Who does not maintain an  appointment book separate and distinct from that of the establishment in which the  space	 	
is located; and 	
(3)  	 Who does not  have a business license where  applicable. 	
(F) 	“Em plo ye r	” m eans	 any	 pers on	 as defined	 in Se ction	 18	 o f the	 Labor	 Cod e,	 who	 d ir e ctly	 or ind ir e ctly ,	 or through	 an	 agent or	 	
a ny	 other	 p erson,	 e m plo ys	 or e xercises	 c ontrol	 o ver	 the	 w ages ,	 hours ,	 or w orking	 c o nd itions	 o f any	 person.	 	
(G)  	“Hours	 work	ed” m eans	 the	 tim e	 dur ing	 which	 an	 em plo ye e	 is sub je ct	 to the	 control	 o f an	 em plo ye r,	 and	 inc ludes	 all the 
ti m e	
 the	 em plo yee	 is s uf fer ed	 or per mitted	 to wo rk,	 whet her	 or not	 requ ir ed	 to do	 s o .	 	
(H)  	“M	ercant ile	 Indust ry ”	 m eans	 any	 indu str y ,	 b u sines s,	 or e sta blish ment	 oper ated	 for	 the	 pu rpo se	 of purchas ing,	 selli n g,	 or 
d ist ribut ing	
 goods	 or co mmo dities	 at whol esa le	 or r eta il;	 o r for	 the	 pur pose	 of rent ing	 goods	 or com mod iti e s.	 	
(I)  	“M	ino r”	 m ean s,	 for	 the	 pu rp o se	 of th is	 ord er,	 a ny	 person	 under	 the	 age	 of 18	 yea rs .	 	
(J)  	“O	utside	 sa le spers	on”	 m ea ns	 any	 person,	 18	 years	 of age	 or o ve r,	 who	 cu sto maril y	 an d	 regu la rly	 w ork s	 more	 than	 hal f	 th e 
w orking	
 ti m e	 aw ay	 fr om	 the	 e m plo ye r’s	 p la ce	 of b u sin ess	 se lling	 tang ib le	 or intang ib le	 ite ms	 or obtaini ng	 orders	 or cont ra cts	 for 
product s,	
 s e rv ices	 or use	 o f fa ciliti es .	 	
(K)  	“Primarily”  as  used  in Section  1,  Applicability,  means  more  than  one-half the  employee’s  work time.  	
(L) 	“Shift ” m eans	 de signated	 h ours	 of w ork	 b y an	 e m plo ye e,	 with	 a de signated	 beg inn ing	 ti m e	 and	 quitt ing	 t im e.	 	
(M)  	“Split	 sh if	t”  m eans	 a work	 s chedul e,	 which	 is inter rupted	 b y no n-pa id	 non -w orking	 pe riods	 e sta blished	 b y the	 e m plo ye r, 
other	
 than	 bona	 f ide	 rest	 or m eal	 pe rio ds.	 	
(N)  	“Tea ch i	ng” m ean s,	 for	 the	 p urpo se	 of Se ction	 1 of th is	 or de r,	 the	 p ro fe ssion	 o f tea ch ing	 under	 a c e rti ficate	 f r om	 the 
Com mission	
 for	 T ea cher	 Prepa rat ion	 and	 Licens ing	 or teach ing	 in an	 a cc red ited	 c o lle ge	 or un iv ersit y.	 	
(O)  	“Wag es	” in clude s	 all a m ounts	 for	 labor	 pe rfo rm ed	 by e m plo yees	 of e ve ry	 de script ion,	 whether	 the	 a m ount	 is f ix ed	 or 
a sce rta ined	
 b y the	 standard	 of tim e,	 ta sk,	 p iec e,	 co mmission	 ba sis ,	 or other	 m ethod	 of ca lc u lat ion.	 	
(P)  “W ork d a	y” and  “d a	y” m ean	 any	 cons ecut iv e	 24 -hour	 pe riod	 beg inn ing	 at the	 s a m e	 tim e	 ea ch	 c a lendar	 d ay.	 	
(Q)  	“Work w ee k	” and	 ”w ee k	” m ea n	 any	 se ven	 (7)	 con se cut iv e	 d ays,	 sta rting	 with	 the	 sa me	 ca lendar	 d ay	 ea ch	 w eek .	 ”W ork w ee k	” is 	
a fix ed	 and	 regula rly	 re cu rring	 pe riod	 of 168	 hou rs,	 se ven	 (7)	 c on se cut iv e	 24 -hour	 p e riods .	 	
3. HOURS AND DAYS  OF WORK  	
(A) 	 Daily Overtime  - General  Provisions  
(1)  The  following  overtime provisions  are  applicable  to employees  18  years  of  age  or over  and  to employees  16  or 17  years	
 	
of  age  who are  not  required  by law  to  attend  school and  are not  otherwise  prohibited  by law  from  engaging  in the  subject  work.

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For further information or to file your complaints, visit https://www.dir.ca.gov/dlse/dlse.html	 or  contact the State of California at the following department offices:  	 	California Labor  Commissioner's  Office,  also known  as,  Division  of  Labor  Standards  Enforcement  (DLSE)  	
 	
BAKERSFIELD  Labor	 Commissioner's	 Office/DLSE	 	REDDING Labor	 Commissioner's	 Office/DLSE	 	SAN JOSE  Labor Commissioner's	 Office/DLSE	 	7718 Meany	 Ave.	 	Bakersfield, CA   93308 
661 -587 -3060  	250 Hemsted Drive, 2nd 	Floor, Suite	 A 	Redding, CA   96002 530-225 -2655  	
100 Paseo De San Antonio, Room	 120	 	San Jose, CA   95113 408-277 -1266  	
 EL CENTRO  
Labor  Commissioner's  Office/DLSE  
1550 W. Main  St. 
El Centro, CA  92243  
922 43	
  	760	-353	-0607	 	
 	SACRAMENTO  
Labor  Commissioner's  Office/DLSE  
2031 Howe Ave, Suite  100 
Sacramento, CA  95825  
916 -263 -1811  	 	SANTA  ANA 
Labor Commissioner's  Office/DLSE  
2 MacArthur Place Suite 800 	 
Santa Ana, CA   9270 7 
714 -558 -4910  	
 FRESNO  
Labor  Commissioner's  Office/DLSE  
770 E. Shaw 	Ave., Suite 222	 	
 	SALINAS 
Labor  Commissioner's  Office/DLSE  
950	 E. Blanco	 Rd.,	 Suite	 204	 	
 	SANTA BARBARA  
Labor Commissioner's  Office/DLSE  
411 E. Canon 	Perdido, 	Room	 3 	Fresno, CA 	 93710	 	Salinas, CA	 93901	 	Santa Barbara, CA 	 93101	 	559	-244	-5340	 	831	-443	-3041	 	805	-568	-1222	 	
LONG	 BEACH	 	SAN	 BERNARDINO	 	 	
Labor	 Commissioner's	 Office/DLSE	 	300 Oceangate, 3	rd Floor	 	Labor	 Commissioner's	 Office/DLSE	 	464 West 4	th  Street, Room	 348	 	SANTA	 ROSA	 	Labor Commissioner's	 Office/DLSE	 	Long Beach, CA 	 90802	 	San Bernardino, CA 	 92401	 	50 ?D? Street, Suite	 360	 	562	-590	-5048	 	909	-383	-4334	 	Santa Rosa, CA 	 95404	 	
 	 	707	-576	-2362	 	
LOS	 ANGELES	 	SAN	 DIEGO	 	 	Labor	 Commissioner's	 Office/DLSE	 	Labor	 Commissioner's	 Office/DLSE	 	STOCKTON	 	320	 W. Fourth	 St.,	 Suite	 450	 	7575 	Metropolitan	 Dr., Room	 210	 	Labor Commissioner's	 Office/DLSE	 	Los Angeles,  CA	 90013	 	San Diego, CA 	 92108	 	31 E. Channel Street, Room	 317	 	213	-620	-6330	 	619	-220	-5451	 	Stockton, CA	 95202	 	
 	 	209	-948	-7771	 	
OAKLAND	 	SAN	 FRANCISCO	 	 	Labor	 Commissioner's	 Office/DLSE	 	1515	 Clay	 Street,	 Room	 801	 	Labor	 Commissioner's	 Office/DLSE	 	455 Golden Gate Ave. 10	th  Floor	 	VAN	 NUYS	 	Labor	 Commissioner's	 Office/DLSE	 	Oakland,  CA	 94612	 	San Francisco, CA 	 94102	 	6150 Van 	Nuys 	Boulevard, Room	 206	 	510	-622	-3273	 	415	-703	-5300	 	Van Nuys, CA 	 91401	 	
 	 	818	-901	-5315	 	
OAKLAND	 – HEADQUARTERS	 	 	 	Labor	 Commissioner's	 Office/DLSE	 	 	 	1515	 Clay	 Street,	 Room	 1302	 	 	 	Oakland, CA	 94612	 	 	 	510	-285	-2118	 	 	 	[email protected]	 	 	 	
 
 
 
 
 
 
 
 
 
 
 
 
EMPLOYERS: Do not send copies of your  alternative workweek	 	election ballots or election  procedures.  
Only the results of the  alternative workweek election	
 	shall be mailed  to: 
 	
 	Department of Industrial  Relations  
Office of Policy, Research and  Legislation 
P.O.  Box 420603  
San Francisco, CA  94142- 0603	
 	(415) 703- 4780  	
 Prevailing Wage Hotline (415)  703 -4774