Aug. 31 was the last day for California legislators to pass bills, and the governor has until Sept. 30 to sign or veto them. But the current budget standoff in the legislature could mean that few, if any, bills will become law this year. That’s because Gov. Schwarzenegger has pledged that he won’t sign any legislation until a budget agreement is reached. And with the exception of signing an important high-speed rail measure destined for the November ballot, the governor has stuck to his promise so far. There are a number of employment-related bills that made it to enrollment in the final stretch of the legislative session, but all could face certain veto if a budget deal isn’t reached soon.
Two wage-hour bills, however, snuck through and became law before the budget impasse began. One bill, S.B. 940, provides relief to “temporary services employers” from existing law requiring that final paychecks be issued immediately upon an employee’s discharge. The law clarifies that the end of a temp assignment is not a discharge, and temporary services employers must simply pay wages at least weekly to employees who are assigned to work for a client or customer, regardless of when an assignment ends. Work performed during a calendar week must be paid no later than the regular payday of the following calendar week. Likewise, an employee who completes an assignment must be paid by the regular payday of the next workweek. Note, though, that a temp who is discharged must be paid immediately, and a temp who quits must be paid within 72 hours.
California Employer Advisor’s Final Pay Calculator makes your job easier when the employment relationship comes to an end.
Another measure, A.B. 2075, makes it illegal to require an employee, as a condition of being paid, to sign a statement of the hours worked during the pay period if the employer knows the statement to be false.
Both of these new laws take effect on Jan. 1, 2009.
We’ll keep you posted on the status of 2008 legislation, and you can link to bill information here.
When an employee resigns or is terminated, you have just a short period of time to figure out exactly how much the person is owed and to cut the final paycheck. To simplify this task—and get it right—use California Employer Advisor’s Final Paycheck Calculator. This handy calculator is just one of the hundreds of employment tools, checklists, policies, and forms that are complimentary with your CEA Online subscription. Sign up for a 7-day free trial today!