HR Management & Compliance

Wage and Hour: Governor Signs Bill Increasing Labor Code Violation Penalties

Gov. Davis has signed new legislation that boosts the penalties for various California Labor Code violations, effective Jan. 1, 2004. Here are the increases that are on the way:

  • Failure to pay wages. The fine for not paying wages, including overtime, or for illegally withholding wages doubles to $100 for a first offense. For subsequent or willful offenses, the fine increases to $200 plus 25 percent of the amount illegally withheld.

     

  • Minimum wage violations. The penalty for not paying the minimum wage is $100 for initial, unintentional violations.

     

  • Contractor’s license violations. Penalties increase to $200 per day of work for hiring an individual who doesn’t hold a valid state contractor’s license but employs workers to perform services that require a license. Similarly, an individual who has a valid state contractor’s license will be hit with a penalty of $200 per person per day for knowingly hiring a contractor to perform services requiring a license if that person doesn’t have a license or doesn’t meet the requirements for an independent contractor.

The HR Management & Compliance Report: How To Comply with California Wage & Hour Law, explains everything you need to know to stay in compliance with the state’s complex and ever-changing rules, laws, and regulations in this area. Coverage on bonuses, meal and rest breaks, overtime, alternative workweeks, final paychecks, and more.


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