California attorneys have to make a living, says Christopher C. Hoffman, and they’re doing it by suing. They’re getting more creative and more aggressive, even in areas like wage and hour.
Yesterday’s Daily covered Hoffman’s tips for California employers on travel time, tools, and uniforms from attorney. Today, we’ll get his take on avoiding lawsuits related to paydays and vacation pay, plus an introduction to a new wage and hour guide especially for California employers.
Hoffman, the regional managing partner of Fisher & Phillips, LLP in La Jolla, delivered his remarks the Society for Human Resource Management (SHRM) Annual Conference and Exhibition, held recently in San Diego.
Pay days
Non-salary exempt employees must be paid at least twice a month:
- Work from 1st – 15th must be paid by the 26th
- Work from 16th – end of month must be paid by the10th
- There is a one pay period grace time for overtime
Termination Pay
In the event of a termination, all wages owed are due at time of termination.
There is an exception for wages not yet calculable; those are due as soon as practicable.
If employee resigns, wages are due within 72 hours or on last day of work, whichever is later.
Pay Stubs
California requires that the itemized statement include:
- Gross wages earned
- Total hours worked by the employee
- The number of piece-rate units earned and any applicable piece rate if the employee is paid on a piece-rate basis
- All deductions (all deductions made on written agreement of the employee may be aggregated and shown as one item)
- Net wage earned
- The inclusive dates of the period for which the employee is paid
- Name and social security number (effective January 1, 2008 the statement may contain only the last four digits of an employee’s or an employee identification number)
- The name and address of the employer
- All applicable hourly rates in effect during the pay period and the corresponding number of hours worked at each hourly rate by the employee
The wage and hour sharks are circling—don’t be the next victim. Check out ERI’s HR management & compliance report, How to Comply with California Wage and Hour Law, exclusively for California employers. Find out how to avoid getting burned in a complicated—and costly—wage/hour suit. Read more.
Vacation Pay
Remember, says Hoffman, unused vacation is considered wages, which means that it is payable at termination. Holiday pay and sick pay are generally not considered wages, but PTO usually is.
California employers are not required to provide vacation, but if they do, there are requirements. Vacation is earned, or accrued as work is performed, and is calculated proportionally. In other words, if an employee has worked half the time covered by the vacation term (say 6 months of a year) he or she will have accrued half the vacation entitlement (if the company policy awards 15 days per year, this employee would be entitled to be paid for 7.5 days on separation).
Employers may “cap” accrual of vacation time as long as employees have a reasonable opportunity to use it, but forfeiture of unused time (“use it or lose it”) is prohibited.
Of course, vacation pay and pay stub rules are just scratching the surface of California’s intricate wage and hour laws. Where to go for help? Our editors recommend How To Comply with California Wage & Hour Law.
This information-packed 155-page guide, written by an experienced California employment lawyer, features in-depth coverage of all the topics you need to know about in an easy-read, quick-reference style:
- The California Labor Code vs. the federal Fair Labor Standards Act (FLSA)
- Who the California wage/hour laws apply to
- The Wage Orders that cover your organization
- Hours of work—including travel time, make-up time, meal and rest periods, and the definition of “hours worked”
- The rules for hourly, salary, and piece-rate pay
- Bonuses, profit-sharing plans, and tips
- Overtime and double-time wages
- Alternative workweeks
- Tools and equipment, uniforms, and work-related expenses and losses
- Paid time off—vacation, PTO, holidays, and sick leave
- Unpaid time off
- When and how employees must be paid
- Payment of final wages upon termination
- Deductions from pay
- Recordkeeping requirements
- Pay-related discrimination
And much more!
Order your copy now and try it out risk-free for 30 days. If you’re dissatisfied in any way, just return it within 30 days for a full refund.
Don’t become the next statistic—get your copy of How To Comply with California Wage & Hour Law today.