New California Law: Wage Notice Requirement and Increased Exposure for Employers

New wage notice requirement in CaliforniaAB 469, which is titled the “Wage Theft Prevention Act” is aimed at ensuring the collection on judgments against employers for violations of wage laws.

Increased Exposure for Employers Who Violate Wage Statutes

1.  The new law will make it a misdemeanor if an employer willfully violates specified wage statutes or orders, or willfully fails to pay a final court judgment or final order of the Labor Commissioner for wages due.

2.  The new law will extend the time limit for the Division of Labor Standards Enforcement to commence a collection of a statutory penalty or fee against an employer from 1 year to 3 years after the penalty or fee became final.

3.  The new law will extend the time required for an employer who has been convicted of a subsequent wage violation or who has failed to satisfy a judgment to maintain a bond for 2 years (up from 6 months).  The bond is necessary in order for the business to continue operating.

New Wage Notice Requirement

Additionally, this new law will require an employer to provide each employee, at the time of hiring, with a notice that specifies the rate and the basis of the wages, whether hourly, salary, commission, or otherwise.  Any changes to the wages set forth in the notice must be provided to the employee in writing within 7 calendar days of the changes.

Excluded from this requirement are state employees, exempt employees, and those covered by a collective bargaining agreement containing specified information.

TIPS:  Although exempt employees are excluded from the new wage notice requirement, employers are encouraged to make it a practice of providing each new hire with an offer letter that outlines the new employee’s wages and the basis thereof.

If you have any questions regarding AB 469 or any of the new laws passed by Governor Brown, feel free to contact us or call 949.529.0007.

In: Employment Law, New Laws

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