Source: http://nationallawforum.com/2012/01/01/california-wage-theft-prevention-act-takes-effect-january-1-2012/
Timestamp: 2014-04-16 21:57:08
Document Index: 781570805

Matched Legal Cases: ['§ 226', '§ 1174', '§ 98', '§ 240', '§ 243', '§ 200', '§ 1197', 'art 1']

California Wage Theft Prevention Act Takes Effect January 1, 2012 | The National Law Forum
♦ Leave a comment	Posted in the National Law Review on January 01, 2012 an article by the Labor & Employment Practice of Morgan, Lewis & Bockius LLP regarding The Wage Theft Prevention Act of 2011:
The Act is similar to wage theft statutes recently enacted in other states, including New York, New Mexico, Maryland, and Illinois. Below is a summary of the Act’s key provisions, which take effect on January 1, 2012.
Under the Act, at “the time of hire” of any nonexempt employee, an employer will need to provide to the employee a written notice containing all of the following information:
The employee’s rate or rates of pay (including overtime rates), and whether the employee is paid hourly, by the shift, by the day, by the week, by salary, by piece, by commission, or otherwise.
The physical address of the employer’s main office or principal place of business, and a mailing address if it is different.
The Act significantly increases employers’ recordkeeping obligations. Specifically, Labor Code § 226 requires that employers keep a copy of both an employee’s wage statement and a record of deductions, rather than just one or the other, for at least three years. The Act also amends Labor Code § 1174, requiring employers to keep payroll records for each employee for at least three years, instead of two years as previously required.
Labor Code § 98: The Labor Commissioner is now authorized to collect liquidated damages, in addition to wages and penalties, for failure to pay the minimum wage. Previously, liquidated damages were only available in civil court.
Labor Code § 240: The time period for which the Labor Commissioner can require that employers post bonds in order to incentivize compliance and ensure the employer can pay any future awards during that period has been increased from six months to two years. If the employer does not post the bond and does not appeal the order requiring a bond, the Labor Commissioner may order an accounting of the employer’s assets and subject the employer to an additional civil penalty of up to $10,000.
Labor Code § 243: An employer that has been convicted of violating wage laws for the second time within 10 years or has failed to satisfy a judgment for nonpayment of wages could be issued an immediate restraining order from conducting business within the state for 30 days unless the employer posts a bond conditioned on making correct wage payments or satisfying any judgment for nonpayment of wages.
Labor Code § 200.5: The DLSE now has three years-rather than one year, as previously-from the date a penalty or fee becomes final to collect it.
Labor Code § 1197.2: An employer may be criminally liable for a misdemeanor for the willful refusal to pay a final court judgment or final order for wages by the Labor Commissioner within 90 days. Each offense carries a minimum $1,000 fine or minimum six months of imprisonment. If the total wages due are more than $1,000, the minimum fine per offense is $10,000 and an employer may be subject to both the fine and imprisonment.
Under California’s new Wage Theft Prevention Act, employers have additional Labor Code compliance obligations, including the new written notice requirements in Section 2810.5. The Act also significantly increases the damages and penalties available for violations of the Labor Code. Thus, it is important that employers become familiar with the new requirements and take steps now to bring their policies and procedures into immediate compliance.
Tagged: Assembly Bill 469, Employment Law, Labor Law, The Wage Theft Prevention Act of 2011	Post navigation
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