Labor Commission Issues Updated FAQs on Wage Theft Prevention Act
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- Published on Thursday, 26 January 2012 20:06
On January 23, 2012, the California Labor Commissioner released an updated and expanded version of the previously issued “frequently asked questions” (FAQ) related to the new Wage Theft Protection Act (AB 469). The Wage Theft Prevention Act went into effect on January 1, 2012. The new legislation amends existing laws, and adds new requirements which “criminalizes willful violations for non-payment of wages after a court judgment or final administrative order; requires restitution to the employee in addition to a civil penalty for failure to pay minimum wages; requires that specified information be provided to employees at the time of hire and in wage claim proceedings and that employers update changes within specified periods; extends the time period for obtaining judgments on final orders for collection of penalties by the Division of Labor Standards Enforcement (DLSE); enhances bond requirements for employers with convictions or court judgments for non-payment of wages including requiring an accounting of assets upon request by DLSE or court order; establishes that penalties under the Labor Code for failure to comply with wage-related statutes are minimum penalties; and allows employees to recover attorney’s fees and costs incurred to enforce a judgment for unpaid wages.”
The new legislation also requires that employers provide notice to employees of their rate(s) of pay, designated pay day, the employer’s intent to claim allowances (meal or lodging allowances) as part of the minimum wage, and the basis of wage payment (whether paying by hour, shift, day, week, piece, etc.), including any applicable rates for overtime. The new law also requires that the notice contain the employer's "doing business as" names, and that it be provided when the employee is hired and within 7 days of a change, provided the change is not listed on the employee’s pay stub for the following pay period. The notice must be provided in the language the employer typically uses to communicate workplace information to the employee. The Labor Commission has provided translated notices. The Commissioner is also recommending that all non-exempt existing employees be provided with the same information although the new legislation only pertains to new hires. A template has been provided by the Commissioner which can be found at: http://www.dir.ca.gov/dlse/Governor_signs_Wage_Theft_Protection_Act_of_2011.html. Read More.