Posters and Notice Requirement
Two new required posters: injuries caused by work and whistleblower protection; new minimum wage posters
Exempt and Non-Exempt
Exempt employees: $41,600/annual; $3,466,67/monthly minimum salary
Physicians and surgeons: $76.24/hour
Computer professions: $41.85/hour; $87,185.14/annual; $7,265.43/monthly
Verifying Eligibility to Work
New USCIS I-9 Form effective November 2015
It is a violation of California law to use E-Verify in a time or manner that is not required by federal law to check the employment authorization status of an existing employee or applicant who has not been offered employment. Exception: if required by federal law or to receive federal funds. $10,000 civil penalty for each violation.
Companies and staffing agencies/labor contractors are both liable for wage and hour violations, workers’ compensation, retaliation claims. Some exclusions based upon size of business entities and type of labor performed.
A child worker’s immigration status is not relevant to the issue of whether the employer violated the law or what remedies are available to the worker.
“No-hire” provisions in a separation or severance agreement may violate Business & Professions Code §16600 (9th Circuit Court of Appeals).
Wage and Hour Law
Individuals can be held personally liable for a company’s failure to comply with certain wage and hour laws (“other person acting on behalf of the employer”), including
- Wage Order violations for minimum wages, days and hours of work
- Timely payment of wages
- Pay stub/itemized wage statements
- Meal and rest break requirements
- Reimbursement of expenses
“Other person acting on behalf of an employer” means owner, director, officer or managing agent.
Labor Commission can conduct hearings and award civil penalties against the company and individuals. Labor Commission can levy on personal assets.
Employers are prohibited from retaliating against an employee because the employee’s family member engaged in, or is perceived to have engaged in, protected conduct.
The Labor Commissioner to now investigate and enforce local overtime and minimum wage laws, such as the local minimum wage ordinances enacted by many cities.
|$10/hour – California$15/hour – overtime (time and one-half)$20/hour – overtime (double time)||$10.15/hour – federal construction and service contracts.|
Cities or towns having local minimum wage Counties with a living
or living wage ordinance wage ordinance
Port Hueneme Richmond
| Los AngelesMarinSan Francisco
On-Call Resident Employees
Applicability is to employees under Wage Order 4. Compensation is appropriate for all on-call hours spent at the assigned worksite under the employer’s control where employer exercised significant control over employee’s activities during the on-call time. Employees must live on-site, respond promptly, not free to leave at-will, but only when relief available. No children, no pets, no alcohol, no visits with adult friends or family without permission. California Supreme Court decision.
Employer can deduct $1.50 from employee’s earnings for each payment made in accordance with any garnishment order. The amount of wages exempt from garnishment is higher under California law than the federal standard.
Training Related Expenses
Requirement to reimburse training costs if employee terminated employment within 5 years of date of hire held to be invalid. California Appellate Court decision.
Time a worker spends in security screenings is not compensable under FLSA. U.S. Supreme Court decision.
Paid Sick Leave
The Healthy Workplaces, healthy Families Act creates an employer mandate to provide paid sick leave (PSL) effective July 1, 2015.
- Employees cannot start using accrued sick days until the 90th day of employment.
- Employers can limit the amount of PSL an employee can use to three days or 24 hours per year.
- Statutory accrual method: one hour of sick pay for every 30 hours worked; any accrued but unused sick time must carry over to the following year of employment but can be capped at 48 hours or 6 days.
- PSL must be provided upon an employee’s oral or written request. If the need for PSL is foreseeable, an employee must provide “reasonable” advance notice. If not, the employee must provide notice “as soon as practicable.”
- An employer can set a “reasonable minimum increment” of time that must be taken not to exceed two hours.
- Under California’s “kin care” law, employers must allow employees to use one-half of their annual sick leave entitlement to care for a family member.
See California Department of Industrial Relations Website for additional information including “Frequently Asked Questions” and responses. www.dir.ca.gov.
School and Child Care Activities Leave
Employers with 25 or more employees working at the same location must permit employees to take time off to participate in certain school or child care activities up to 40 hours annually.
Heat illness prevention requirements are applicable to agriculture, construction, landscaping, oil and gas extraction and transportation, deliveries of agricultural products, construction materials or other heavy materials.
Gender Wage Equality – Fair Pay Act
Effective January 1, 2016. Employers are prohibited from paying any of their employees less than employees of the opposite sex for “substantially similar work.” The burden is on employers to justify pay differentials from an acceptable list of factors that must be applied reasonably. The relied upon factors must account for the entire wage differential. No discriminatory intent is required. “Substantially similar work” means a composite of skill, effort and responsibility that is performed under similar working conditions. It does not have to be the exact same job title or function.
Employers cannot prohibit employees from disclosing their own wages, discussing wages of others, asking about another employee’s wages, aiding or encouraging other employees to exercise their rights under the Fair Pay Act. There is no obligation, however, of an employee to disclose wages when asked. Employers must keep wage, job classification and other terms and conditions records for 3 years.
Fair Pay Act includes all forms of compensation (salary, bonuses, commissions, and related perks).
Requests for Reasonable Accommodation
The mere act of requesting a reasonable accommodation for a disability or religious reasons is a protected activity and an employer cannot discriminate or retaliate against a person for requesting the accommodation, regardless of whether the request was granted.
Wage Statement Violations
Wage statements must include nine items of information, including the beginning and end date of the period for which the employee is being paid and the employer’s name and address. Employers who don’t include all of these items on their wage statement get a break: An employee can’t file an action under the Private Attorneys General Act for these omissions without first notifying the employer and giving the employer a chance to fix the problem by issuing new (and compliant) wage statements for the 3-year period before the notice.
Requirements for Paying Piece-Rate Workers
Employees must be separately compensated for rest and recovery breaks and other “nonproductive” time. (Wage statements have to reflect this time, too.) But employers can satisfy this requirement by paying minimum wage for all hours worked, in addition to any piece rate. This will particularly affect agricultural and transportation companies, which have historically compensated employees based on piece-rate and activity-based formulas.
National Labor Relations Board (NLRB)
Sections 7 and 8(a) (1) protect the rights of employees to engage in “protected concerted activity” (i.e., 2 or more employees taking action relating to terms and conditions of employment for their mutual aid or protection). Applies to union and non-union employees
- Single employee acts on authority of other employees in bringing group complaints to the employer’s attention or attempts to induce group action.
- Employees can act together to improve wages and other conditions of employment.
- NLRB invalidated employee confidentiality agreements in workplace investigation.