California Wage and Hour Provisions

Saturday, June 05, 2010

California is known for many things; including significant differences it its wage and hour provisions covered workers. http://www.dir.ca.gov/dlse/DLSE-FAQs.htm

 

Deductions:

A California employer may withhold wages only: (A) required by state or federal law, or (B) authorized in writing by the employee, or (C) authorized by a collective bargaining agreement, or (D) authorized by court order.

Holidays:

Time worked on holidays, Saturdays, and Sundays are treated like time worked on any other day. California employers are not required provide employees with paid holiday time or time off in lieu of any particular holiday.

Independent Contractors:

Under California Independent contractors are exempt from California labor law. While here is no set definition of an "independent contractor" employers should carefully analysis the relationship between the business and an individual classified by the business as an "independent contractor".

Lactation Accommodation:

California employers are required to accommodate nursing mothers with periods of suitable time and place to express milk. The break time is to be concurrent, if possible with any existing break times already available to the employee.

Meal Periods:

California employers are required to provide employees with a minimum of a 30-minute meal break for every 5 hours of paid time per day.

Minimum Wage:

California’s employee minimum wage, effective January 1, 2008, is $8.00 per hour. Some employees are exempt from the minimum and include outside salespersons, individuals who are the parent, spouse, or child of the employer, and apprentices. Exceptions also apply to learners, who can be paid at 85% of the minimum wage during their first 160 hours of work. Additional exceptions apply for mentally or physically disabled, employed for nonprofit organizations such as sheltered workshops.

Overtime:

In general, overtime provisions apply to nonexempt employees 18 years of age and to employees 16 or 17 years of age, not required by law to attend school.

A.1 ½ times regular rate of pay for hours in excess of 8 hours up to and including 12 hours in any workday.

B. 2 times regular rate of pay for hours in excess of 12 hours in any workday and for hours worked in excess of eight on the seventh consecutive day.

Paydays, Pay Periods, and Final Wages:

With some exceptions, California employees must be paid twice during each calendar month. Overtime must be paid no later than the payday for the next regular payroll period. Employees discharged must be paid all wages at the time of termination. Employees, who are laid off due to seasonal employment in the curing, canning, or drying of any variety of fruit, fish or vegetables, must be paid within 72 hours after the layoff. Employees engaged production of motion pictures laid off and require special computation of wages, must be paid by the next regular payday. Employees engaged in oil drilling laid off must be paid within 24 hours after discharge. Special considerations are provided for employees for theatrical or concert events. Direct deposits of wages are immediately terminated upon separation, UNLESS the employee has voluntarily authorized that deposit.

Personnel Files and Records:

California employers most allow employees and former employees to view their personnel files. Employers must do one of the following: (1) keep a copy of each employee’s personnel records, (2) make the personnel records available, or (3) permit the employee to inspect the records. Personnel files and records exclude those relating to, (a) investigation of possible criminal offense, letters of reference, (b) were obtained prior to employment, (c) prepared by identifiable examination committees, or (d) obtained in connection with promotional exam.

Reporting Time Pay:

Partial compensation for employees who report for work but not work is available due to inadequate scheduling or lack of proper employer notice. Reporting time pay is not counted as overtime. For each day, an employee reports for work and is physical and mental able to work but no work is available, the employer is required to pay not less than two hours and no more than four hours, at their regular rate of pay. Exceptions include work not being available due to (1) threats to employees or property, (2) when directed by civil authorities, (2) failure of public utilities, (3) Acts of God or (4) other cause beyond the employer's control.

Rest Periods:

California employers must allow nonexempt employees a rest period of 10 minutes for each 4-hour period, or fraction part. Suitable rest periods and locations (excluding bathrooms) must be provided to nursing mothers to express milk. Rest periods are considered time worked. Employees in construction, drilling, logging and mining industries may be required stagger rest periods to maintain continuous operations. However, employers must make-up missed rest periods within the same workday or compensate the employee. Crewmembers on commercial passenger fishing boats on overnight trips are permitted at least 8 hours rest time during each 24-hour period.

Retaliation/Discrimination:

California employers are prohibited from discharging, threatened to discharge, demote, suspend, or otherwise discriminate and/or retaliate against employees who engage in a "protected activity".

Tips and Gratuities:

California employers are prohibited from sharing any portion of a “voluntary” gratuity left for employees by a customer. It is illegal for employers to take deductions from gratuities, or use gratuities as direct/indirect credits for wages. Gratuities are the sole property of employees who received them.

Vacation:

California employers are not required provide employees with paid or unpaid vacation time. Provided that an employer has vacation policy, practice, or agreement, then California imposes certain restrictions. Earned vacation time is considered wages, and vacation time is earned, or vests, as labor is performed. Vacation pay accrues and cannot be forfeited, even upon termination of employment, regardless of the reason for the termination.

Waiting Time Penalty:

California imposes a penalty on employers who “willfully” fall to pay employees for their “full and prompt payment of wages”. The penalty is computed at the employee’s daily rate of pay and is calculated by multiplying the daily wage by the number of days that the employee was not paid, up to a maximum of 30 days. Waiting time penalty is not considered wages, therefore, no deductions are taken from the penalty payment.

As always, in dealing with any Federal, state or local governmental regulations and oversight, you should seek out qualified professional legal advice and counsel before talking any potential action that might place the organization at some risk.