Wednesday, January 11, 2012

AB 469/Wage Theft Protection Act

Tom Martin, a Board Member of Small Business California provided information about a new law in a recent newsletter he wrote for the Small Manufacturers Association of California. Employers effective January 1, 2012 are going to be required to provide this information to all new employees that are nonexempt. Please see below his piece along with the link to DIR and the template for you to provide the new employees. Hope you are enjoying the Holidays and Small Business California looks forward to a successful year for California small businesses in 2012.

Scott Hauge
Small Business California
2311 Taraval Street
San Francisco, CA 94116


AB 469 requires employers to provide nonexempt employees, at the time of hire, a notice that specifies:

-The rate of pay and the basis, whether hourly, salary, piece commission or otherwise, including any overtime rate
-Allowances, if any, claimed as part of the minimum wage, including meal and lodging allowances
-The regular pay day designated by the employer as required under the Labor Code
-The name of the employer, including any “doing business as” names in the letter not on the letterhead.
-The physical address of the employer’s main office or principal place of business and any mailing address, if different
-The telephone number of the employer
-The name, address and telephone number of the employer’s workers’ compensation carrier

The law also requires notice of any other information the Labor Commissioner deems material and necessary. The Labor Commissioner is to provide a template. If there is any change to the information in the notice, the employer must notify each employee, in writing, within seven calendar days of the changes, unless such changes are elsewhere reflected on a timely wage statement or other writing required by law. The new law only applies to nonexempt employees, which again highlights the need for properly classifying employees at the time of hire. This legislation also increases penalties for wage violations and makes further changes regarding collection of such penalties, including an increase in the statute of limitations.

The law specifies new hires, but it also says that any changes must be reported in writing to all employees within seven days. You can delay providing the information to current employees but eventually the employer will have to notify them as well, as changes are made. There is a lot of potential litigation in this.
Link below: Governor signs Wage Theft Protection Act of 2011

1 comment:

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