When employees are covered by a collective bargaining agreement that provides for different pay arrangements, those arrangements will usually override the pay periods explained above.49 As such, unionized employees should consult their union’s collective bargaining agreement to determine their pay schedules. California law requires employers to keep a copy of employee wage statements statement. The California Labor Code also provides for an additional civil penalty for certain violations. These types of workers are called piece-rate employees. An employee suffering an injury due to an employer’s knowing and intentional failure to comply with California pay stub and wage statement law is entitled to the greater of: Attorney fees are awarded to a prevailing employee. If a payday falls on a holiday, and the employer’s business is closed, then the employer is entitled to pay their employees on the following business day. No legal advice is intended. In reviewing for compliance with this section, the factfinder may consider as a relevant factor whether the employer, prior to an alleged violation, has adopted and is in compliance with a set of policies, procedures, and practices that fully comply with this section.”].↥, Labor Code, § 226, subd. This means that if the employee has to reference any other document or information to find one of the types of information listed above, they have been “injured” for the purposes of the wage statement penalty.83, If the employee is entitled to a wage statement penalty, they can recover the greater of:84, Injured employees are also entitled to recover their costs and attorney’s fees incurred in seeking a remedy for their injury.86 But, because this is already a penalty, employees are not entitled to recover punitive damages if they file a lawsuit against their employer solely for a wage statement violation.87, As mentioned above, employees are sometimes entitled to recover money for their “actual damages.”88 The phrase actual damages refers to the harm the employee actually suffered because the employee was not given a wage statement. If the employer is a farm labor contractor, the name and address of the legal entity that secured the services of the employer must be stated. ... and tight deadlines they have in responding to an employee’s request for various employment documents under California law. In Lopez, plaintiff employee brought a PAGA claim against his employer for violating Labor Code section 226(a). Independent Contractors vs. Employees: A Guide California Law, The Law on Late & Unpaid Wages in California, Exempt vs. Non-Exempt Employees: Guide to California Law, How to File a Wage & Hour Claim in California. Under Section (e), employees may recover actual damage costs or $50 for each pay period violated, limited to $4,000. A violation of this subdivision is an infraction. When employees are paid on a piece rate basis, the pay stub must separately include the following information:15, Piece-rate employees are also entitled to a separate accounting of their pay for time spent doing things unrelated to their primary production duties. Overtime wages can sometimes be more difficult for employers to calculate than other types of wages. Our consultations are free and confidential. Employers that utilize a payroll service would be well advised to not simply rely upon that service provider to ensure compliance with Labor Code Section 226. (“(a) An employer, semimonthly or at the time of each payment of wages, shall furnish to his or her employee, either as a detachable part of the check, draft, or voucher paying the employee’s wages, or separately if wages are paid by personal check or cash, an accurate itemized statement in writing showing (1) gross wages … enacted laws are effective Jan. 1, 2016, unless otherwise stated. If you are an employer in California, you are likely well aware of Labor Code § 226 and the many items that our state requires to be on employee paystubs: gross wages, legal name of employer, inclusion dates for the pay period, etc. It can also be given to employees as a separate document.5, At a minimum, a wage statement or pay stub must include all of the following information (if applicable):6. If the employee wins, the court may award them 25% of the penalty due under the statute, plus reasonable attorney fees and litigation costs.105 Many attorneys take these kinds of cases on a contingency basis, without any upfront fees. . California pay stubs and wage statements must include all applicable hourly rates in effect during the pay period and the corresponding number of hours worked at each hourly rate by the employee. Pursuant to California Labor Code section 226(a)(7), employee wage statements must state either “only the last four digits of [the employee’s] social security number or an employee identification number other than a social security number.” In Blaire, the employer utilized a payroll servicing company to issue employee wage statements. In most cases, there are three simple requirements to determine whether a worker is an exempt employee under federal law: If all three requirements are met, the employee will usually be classified as “exempt.” There are, however, many caveats to this test, which can be read about in our article Exempt vs. Non-Exempt Employees: Guide to California Law. (Labor Code § 226) Failure to adhere to all of … '”].↥, Labor Code, § 226, subd. A employee may bring a PAGA claim by filing a civil lawsuit against their employer.104 To do this, however, the employee must first follow certain procedures, which are described in Labor Code sections 2698 through 2699.5 (Opens in new window). .”].↥, Jaimez v. Daiohs USA, Inc. (2010) 181 Cal.App.4th 1286, 1306 [citing with approval Wang v. Chinese Daily News, Inc. (C.D.Cal. 8, § 13520, subd. . And those stupid little requirements, found in Labor Code section 226, specifying what information must be on a paycheck stub, are very important. Benefits and pitfalls exist to both, and every California employee’s wage claim demands an individual analysis. Contact a California Workplace Solutions blog author if you have any questions or concerns about Labor Code Section 226 compliance. The California laws also say that one of these paydays must come on or before the 10 th of the … When an employer violates California’s wage and hour laws, employees can pursue relief in three primary ways: The procedure for filing an administrative wage claim is explained in our article How to File a Wage & Hour Claim in California. $50.00 for the initial pay period in which the violation occurs; $100.00 for each subsequent pay period in which the violation occurs, up to a total of $4,000.00; or. Two successive paydays cannot be more than 31 days apart.70. Under California Labor Code Section 226(a), when wages are paid, an employer must provide a pay stub, i.e., “a detachable part of the check, draft, or voucher paying the employee’s wages,” or a separate written document if wages are paid by … Temporary service employees (temps) are subject to slightly different rules than other employees. California law requires ten (10) specific pieces of information to be included on every payroll paystub or wage statement for each employee. . In some cases, litigants seek to extend the statute of limitations in their wage and hour claim by bringing the claim under California’s Unfair Competition Law.110 Those claims must be brought within four years.111 It is usually better, however, to bring claims earlier, if possible, so as to avoid relying on this kind of claim in case it turns out to be inapplicable. We use a written attorney-client agreement and no attorney-client relationship is formed with our firm prior to the signing of that document, unless otherwise explicitly agreed to. ... but nevertheless California employers should pay attention to … Pursuant to California Labor Code Section 226, an employer must provide to employees an accurate itemized wage statement in writing showing (1) gross wages earned, (2) the total hours worked by the employee, (3) the number of piece-rate units earned and any applicable piece rate, (4) all deductions, (5) net wages, (6) inclusive dates of the period for which the employee is being paid, (7) …