Effective Immediately, California’s New Wage Theft Protection Act
As of January 1st, 2012 all employers have been required to comply with the California new wage theft protection act, Labor Code Section 2810.5. . Theft protection act sets out to clearly define how, when, and what employees shall be paid. The idea is to alleviate any confusion or misunderstandings about the type of employment and benefits the employee will receive. Effective immediately all California employers, regardless of company size and industry, are required to give the following information to all of their employees regardless of full time part time or seasonal status:
1. Classification: exempt, non-exempt, commission, piece rate. In other words, how the employee will be paid; hourly, salary, commission only, days wage, piece rate. It’s important to note that if the employer is claiming the employee is exempt from overtime they must also cite the exemption that they feel the employee falls under.
2. How much the employee will earn: by the hour, overtime rates, annual salary, piece rate, day rate.
3. When the employee will be paid: weekly, biweekly, bimonthly, monthly etc.
4. If applicable, allowances claimed as part of the wage, meals, housing etc.
5. Name of the employer or the DBA (doing business as) or any other names the employer uses to conduct business.
6. Mailing and Physical address of the employer’s main place of business.
7. Phone number to the main office
8. Workers compensation information: Name of insurance carrier, phone number, address
Moving forward, Employers must give written notice to all newly hired employees as well. Also, if any of the information above changes, the employer has 7 days to furnish notice of change in writing to the employee, California Labor Code §226. Notice need not be provided to non-exempt employees who are both covered by a collective bargaining agreement and who earn at least 30% more than the California minimum wage per hour.
With new laws come new penalties; the Wage Theft Protection Act adds or increases existing civil and criminal penalties, in some instances allowing liquidated damages and attorneys’ fees, and extends the applicable statute of limitation to three years.
Labor law is complex; if you have any questions regarding your employment it is recommended that you contact a California labor law attorney who can help you understand your rights and in many cases will review your situation without charge.
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