Dec. 29, 2011 DLSE Publishes Template for Employee Notices Required by the Wage Theft Prevention Act

On Wednesday the California Division of Labor Standards Enforcement (DLSE) published a template to assist employers in complying with the new Wage Theft Prevention Act’s employee notice requirements.  This new law requires employers to furnish several types of information to newly hired non-exempt employees, among others, beginning January 1, 2012.  The template can be downloaded here.

Discussion

As discussed in our October 20, 2011 E-Update, the Wage Theft Prevention Act (AB 469) requires employers to provide each newly hired, non-exempt employee with a written notice that contains specified information.  The information that must be provided is:

  • The rate or rates of pay, including overtime rates.
  • An indication of whether the employee is to be paid by the hour, shift, day, week, salary, piece, commission, or otherwise.
  • Allowances, if any, claimed as part of the minimum wage, including meal or lodging allowances.
  • The regular payday 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 employer's workers' compensation insurance carrier.
  • Any other information the Labor Commissioner deems material and necessary (which is reflected in the newly-issued template).

Additionally, if an employer later changes any of the required information, the employer must notify its employees of the changes within seven days, either by providing a new notice or by including the new information on a timely issued wage statement. 

Notably, the notice requirements do not apply to exempt employees, public employees, or employees covered by valid collective bargaining agreements who earn at least 30 percent more than the state minimum wage.

What This Means

Although the new law does not require employers to use the DLSE template, it provides a ready tool for many employers to meet the requirements of the new law.  However, many employers, particularly larger employers which regularly hire employees, may prefer to create their own template that is customized to them.  In either case, employers must be prepared to begin providing some notification beginning January 1, 2012. 

Additionally, employers should remain aware of the continuing obligation to update the covered employees whenever the information specified above changes.  It is particularly important to be vigilant on this issue because the time period to provide the updated notification is short (i.e., within seven days of the information changing or in the next timely issued wage statement). 

This E-Update was authored by Aaron Buckley and Brenda Kasper.  For more information or questions, please contact Mr. Buckley, Ms. Kasper or any Paul, Plevin attorney at (619) 237-5200.