| Itemized wage statements: The
new law makes a number of modifications to the existing
requirement that employers provide workers with itemized
wage statements along with their paychecks. The changes
include: 1) Hourly rates: The wage statement must show
all applicable hourly rates and the number of hours worked
by the employee at each rate. 2) Piece rates: Statements
must now include any applicable piece rates and the number
of piece-rate units earned by the worker. 3) Record retention:
Piece rate records must be kept for at least two years,
which is the current required retention period for other
payroll records. 4) Penalties: An employer who intentionally
violates the new law must pay each employee the greater
of: (a) their actual damages, or (b) $50 for the initial
pay period, plus $100 for each subsequent pay period
in which a violation occurs, up to a maximum of $4,000.
Credit card tips: If
customers tip by credit card, you must pay the employee
the full amount of the gratuity indicated on the
charge slip no later than the next regular payday
following the date on which the customer authorized
the credit card payment. Plus, the statute clarifies
that you can’t deduct from the employee’s tip any
processing fees you may have to pay to your bank
or the credit card issuer.
On-duty meal periods: The
new Industrial Welfare Commission wage orders require
you to pay an employee one additional hour at their
regular pay rate for each day that a rest period
is not provided and the same penalty where the meal
period is not provided. A.B. 2509 adds this requirement
to the state Labor Code. For more details on the
new mean and rest period requirements, see Waag
and Co. Problem Prevention Bulletin ~ December 2000
~ Wage & Hour Confusion: Missed Rest and Meal
Periods
Penalties for bad
paychecks: Employers are liable for up to an
additional 30 days’ wages and benefits to any employee
paid by a check that is not honored or is drawn
on a nonexistent account. The new law extends this
penalty, which previously applied only to the building
and construction industry, to all employers. The
law covers regular paychecks as well as final payments
when an employee quits or is discharged.
Interest on awards: Awards
for unpaid wages, penalties and other compensation
in actions brought by the Labor Commissioner will
now accrue interest at the legal rate, currently
10%.
Bond required for
appeals: Employers will now have to post a
bond to appeal a wage award issued in a case initiated
by the Labor Commissioner.
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