CALIFORNIA EMPLOYER UPDATE (2012)

In early October, California Governor Jerry Brown signd a variety of important employment and labor-related statutes. Although Gov. Brown vetoed several additional anti-employer measures, this year marks a turning point for employers with workforces in California. It is anticipated that the 2012 legislative session will yield additional proposals that will impose new and probably onerous obligations on employers. The following are the most significant of the measures signed by Governor Brown in 2011.    

“Wage Theft Prevention Act of 2011” Creates New Wage Disclosure Requirements and New Penalties for Underpayment of Wages (AB 469)

The “Wage Theft Prevention Act of 2011,” AB 469, creates new, detailed disclosure requirements that must be provided to all new non-exempt employees commencing January 1, 2012. This statute also creates document retention requirements and imposes several new penalties for violations of wage laws.

Newly added Labor Code Section 2810.5 requires employers to provide written notice upon hire to each non-exempt employee of the employee’s rates of pay (including overtime compensation rates), the basis for the pay (hour, shift, day, week, salary, etc.), any allowances claimed as part of the employee’s wages (including meal or lodging allowances), the regular payday designated by the employer, the employer’s name (including dba names), the physical address of the employer’s main office or principal place of business, and a mailing address, if different. The Labor Commissioner will be providing a template for employers to follow. Section 2810.5 also requires employers to notify non-exempt employees of any changes to that information within seven days of change, unless the information is reflected in written wage statements required by Labor Code Section 226 or in some other writing required by law within the seven-day time period