As we previously reported here and here, on November 7, 2011, Governor Jerry Brown signed into law effective January 1, 2012, Assembly Bill 469, sponsored by State Assembly Member Sandre R Swanson (Dem. Oakland), known as the "Wage Theft Prevention Act of 2011." Effective January 1, 2012, the Wage Theft Prevention Act of 2011 subjects California employers to new notice and record keeping requirements and to additional penalties for failing to comply with various provisions of the California Labor Code.
One of the new requirements now in effect is the Labor Code section 2810.5 requirement that employers to provide to each employee at the time the employee is hired a written notice "in the language the employer normally used to communicate employment-related information to the employee" containing all of the following information: (a) "The rate or rates of pay and basis thereof, whether paid by the hour, shift, day, week, salary, piece, commission, or otherwise, including any rates for overtime, as applicable;" (b) "Allowances, if any, claimed as part of the minimum wage, including meal or lodging allowances," (c) "The regular payday designated by the employer in accordance with the requirements" of the Labor Code, (d) "The name of the employer, including any 'doing business as' names used by the employer," (e) "The physical address of the employer's main office or principal place of business, and a mailing address, if different," (f) the telephone number of the employer, (g) "The name, address, and telephone number of the employer's workers' compensation insurance carrier," and (h) "Any other information the Labor Commissioner deems material and necessary." Further, except for information shown on "a timely wage statement furnished in accordance with Section 226," employers must also notify employees in writing within seven calendar days of any changes to the information required to be contained in the notice. Notably, this new section of the Labor Code does not apply persons employed by any state or local government or to any employee covered by a valid collective bargaining agreement, if the agreement "expressly provides for the wages, hours of work, and working conditions of the employee, and if the agreement provides premium wage rates for all overtime hours worked and a regular hourly rate of apply for those employees of not less than 30 percent more than the state minimum wage."
The Division of Labor Standards Enforcement ("DLSE") recently issued and made available for downloading by clicking here a revised notice template. According to the DLSE's Frequently Asked Questions page regarding the new notice requirement, "employers can develop their own notices so long as they contain all the information required by the law, including all the information requested on DLSE’s template." The template includes all required information, including that which the Labor Commissioner deems material and necessary for purposes of the notice. The DLSE further states, "Employers should keep a record of the notices provided to their employees."
Staffing agency employers should take note that the DLSE's new template specifically calls for staffing agency employers to identify themselves as the "hiring employer" and to also identify "the other entity for whom the employee will perform work." This requirement may prove to be burdensome for some staffing agency employers in some instances in light of the requirement that employers must notify employees in writing within seven calendar days of any changes to the information required to be contained in the notice.
We will continue to provide updates here regarding the new legislation affecting California employers.
