New Employment Laws for 2013 – Part II

The following are additional new employment-related laws in California dealing with wage and hour issues. All of the new laws are effective January 1, 2013 unless otherwise noted.

Wage Statements

An employee will be deemed to have suffered an “injury” (and thus entitled to damages) if the wage statement (check stub) is not complete and accurate and the employee cannot “promptly and easily determine” amounts and other information required. Additionally, as of July 1, 2013, a temporary services agency must include in the wage statement the rate of pay and hours worked for each of an employee’s assignments during the payroll period.

A temporary services employer must include in the wage notice that must be given to employees at the time of hire, the name, the physical address of the main office, the mailing address (if different), and the telephone number of the legal entity for whom the employee will perform work.

What this means for you

Review wage statements which accompany payroll checks to ensure they are accurate and easily readable. If you are a temporary services agency, make sure that additional requirements are met.

Commission Agreements

In addition to the requirement that these must be in writing and acknowledged by the employee by January 1, 2013, the Legislature has clarified that short-term productivity bonuses or bonus/profit-sharing plans are not commissions for purposes of this statutory requirement.

Salaried Non-Exempt Employees

The hourly rate of pay for a non-exempt employee is determined by dividing the salary by all regular non-overtime hours during the pay period covered by the salary. An employee and employer cannot agree to include any overtime hours in the salary.

What this means for you

Ensure written commission agreements are developed and implemented, if appropriate. Ensure non-exempt employees’ regular rate of pay is properly calculated to determine appropriate overtime payments. This is important with regard to establishing average weekly earnings for salaried employees.

Wage Garnishment

The amount of wages exempt from garnishment is increased.

For assistance in implementing these new requirements, please contact GMK employment law attorney Jeanne Flaherty at 818-755-0444 or jflaherty@gmklaw.com.