From Larry Levy, Employee Relations Management
There are three laws that went into effect in 2012 (addressed in my H.R. Alert November 2011) that may have fallen off your radar screen and I want to remind you of their importance. Violation(s) of any will result in severe financial penalties.
Wage Protection for New Non-exempt Employees
AB 469 penalizes employers who knowingly fail to provide specific information about wages to new employees. Beginning January 1, 2012 all private employers are required to provide specific information to all new non-exempt employees who are not covered by a collective bargaining agreement:
- The rate or rates of pay whether paid by the hour, day, week or shift, piece or commission including rates of overtime;
- Allowances, if any, claimed as part of the minimum wage including meal or lodging allowances;
- The regular pay day as designated by the employer;
- The name of the employer including any “doing business as” names used by the employer;
- The physical address of the employer’s main office or principal place of business and a mailing address if different;
- The telephone number of the employer;
- The name, address and telephone number of the Workers’ Compensation insurance carrier;
- Any other information the Labor Commissioner deems material and necessary; and
- Employers must also provide notification of any changes in the above information within seven days either by information on the employee’s next pay statements or on a separate written form.
Misclassification of Independent Contractors vs. Employees
AB 459 severely fines employers who incorrectly misclassify employees as Independent Contractors. The new law imposes a fine of $5,000 to $25,000 for willfully misclassifying an employee as an I.C. Further, there is individual liability for the business owner or manager who hires an I.C. who should be an employee.
Commission Agreements
AB 1396 stipulates all employment commission agreements must be in writing and the contract must indicate the methods by which commissions are made and paid.
If you need help with any of these please call Larry Levy, Employee Relations Management, (415) 892-1497 or 254-3688.
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