More labor law news… A brief overview

Robin Noah

As most of you know California’s Legislature passed AB 1744 last year amending Labor Code sections 226 and 2810.5 which relates to itemized wage statements and wage notice requirements. This law requires every employer to furnish each employee with an accurate statement in writing showing gross wages, hours worked, deduction and other items, at the time of each payment of wages.

If as a nonprofit you use temporary staff agencies services you need to know about the new law.

Starting July 1, 2013 temporary staffing employers will be affected by a new law. This new law amends Sections 226 and 2810.5 of the California Labor Code and will require temporary services employers to provide the rate of pay and the total hours worked for each temporary services assignment on each wage statement.  Additionally the name, address, and telephone number of the legal entity for whom the employee will work, its mailing address and online casinos “any other information the Labor Commissioner deems material and necessary,” upon hiring and any time that any changes in this information occur.  Given the nature of the temporary services industry, this could occur every pay period. 

Non-compliance can be very costly. As noted by Cal Chamber’s Hr Watchdog ” An employee who suffers an injury as a result of an employer’s knowing and intentional failure to comply with Section 226 may recover statutory penalties of up to a maximum penalty of $4,000, injunctive relief, and attorney’s fees and costs.  The new law provides that an employee is “deemed” to suffer injury if the employer either fails to provide a wage statement or provides inaccurate or incomplete information.  The new law further provides that a “knowing and intentional failure” does not include an isolated and unintentional payroll error due to a clerical or inadvertent mistake.  The new law permits, but does not require, a fact finder to consider whether the employer, prior to an alleged violation, has adopted and is following policies, procedures, and practices that comply with the law.” (http://calchamber.typepad.com/)

Recovering statutory penalties for non-compliance of the law is available to all employees, not just those employed by temporary staffing agencies.

Note: This brief overview is a highlight to the law – not intended as legal advice. For legal advice seek legal counsel that specializes in labor law.

Author:  Robin Noah, Executive Coaches of Orange County, www.ECofOC.org

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