Employers have some wiggle room when they design their pay structures and policies. Still, they are governed by strict federal and state laws that regulate the overall payroll process and define employees' rights, including overtime pay. Are You Getting the Overtime Pay You Deserve? In California, non-exempt employees should be paid one and one-half times their regular pay rate for all hours worked over eight hours in any workday and over 40 hours in the workweek. In addition, employers are required to provide double the employee's regular pay rate for all hours worked over 12 hours in any workday and for all hours worked over eight on the seventh consecutive day of work in one workweek. 5 Signs You Aren't Getting the Overtime Pay You've Earned: Are you getting paid the overtime pay you deserve? Watch for some of the common warning signs below. These warning signs could indicate that you aren't being paid according to…Read More
In 2019, Governor Newsom signed AB 5 into law in September of 2019. It added § 2750.3 to the California Labor Code which adopted and broadened the common law "ABC Test." This test determines how to classify an "employee" under the California Labor Code the California Unemployment Insurance Code, and for purposes related to Industrial Welfare Commission wage orders. The law became effective on January 1, 2020. However, different timeframes apply depending on the circumstances. Here are answers to some frequently asked questions about independent contractors under California law. Why is the Classification of Workers Important? An independent contractor has different legal rights and obligations than an employee. The distinction may have extensive consequences for workers and business enterprises. Employees are entitled to minimum wage, overtime pay, business expense reimbursements, and other vital benefits. Employers that misclassify workers as independent contractors avoid paying wages and overtime premiums, as well as providing meal and rest breaks.…Read More
We no longer live in the 19th and early 20th centuries when employers frequently exploited employees with unscrupulous abandon. Nevertheless, 21st-century employers still attempt to exploit employees when they believe it may increase the profits of their business enterprises. To further the public policy of protecting employees from unfair exploitative employment practices, California law offers many legal safeguards for employees. Employers are required to pay workers for and provide rest and meal breaks. Failure to do so is “wage theft.” Employers may try to categorize a worker as an independent contractor to avoid compliance with California wage laws. Filing a claim in this situation for back wages may result in the entitlement to back wages. The following is a list of California laws related to wages and breaks that every California employee should know: Employers must pay minimum wage Contract workers or those who are paid by the piece or unit or paid by the…Read More
Wage theft occurs when an employer fails to comply with wage and overtime laws. These include a guaranteed minimum wage, breaks, and overtime pay when employees work long hours. An employer’s failure to abide by these laws is the same thing as stealing from its employees. Unfortunately, some employers who choose to violate their employees’ wage and overtime rights are good at disguising their misconduct. This makes it difficult for employees to know whey they are getting ripped off. Regardless of whether an employee is classified as “exempt” or makes commissions, California laws are very specific in how much an employee must make in salary, or must make overall with commissions; but for our purposes, know that no employee should be making less than the minimum wage per hour. And this is where employees get trapped: because some employers work these employees such long hours that their average hourly rate per hour comes out to…Read More
Wage theft occurs when an employer fails to follow federal, state, or local laws regarding employees’ wage and overtime rights. These basic rights generally include receiving the minimum wage, overtime compensation, an accurate accounting of their work hours, and breaks. In essence, when an employer does not receive full compensation (including overtime) for all of their work, or fails to receive legally mandated breaks, an employer is stealing from the employee. A June 2018 national study of wage theft claims across the country by Good Jobs First has confirmed what my law firm has seen for years: that wage theft is “rampant” amongst big corporations. In fact, over the last two decades, big companies have had to pay out nine billion dollars in compensation and penalties. The most common types of wage theft include: Overtime violations—where an employer fails to pay employees overtime or double time. Misclassification—where employers misclassify employees as exempt and fail to abide by…Read More
Employees in California are protected by wage and overtime laws, which require employers to: (1) provide the highest available minimum wage; (2) properly count and credit employee’s work hours; (3) pay overtime wages at 1.5 times when an employee works more than 8 hours and double wages when an employee works more than 12 hours in a workday; (4) pay employees timely; (5) provide meal and rest breaks; and (6) provide employers notice of their rights. These laws are well settled and employers have no excuse for noncompliance. Numerous restaurants in California have recently made the news for the wrong reason: wage theft. These restaurants have been caught: La Taqueria, a famous and well established Mexican restaurant in San Francisco was fined by the Office of Labor Standards Enforcement and the California Labor Commissioner for wage and overtime violations, including failing to pay overtime and for failing to pay sick pay. Essentially, the restaurant was taking advantage…Read More
When you chose a career as a barber or hairstylist, you did so because the work appeals to you and because you have bills to pay. Unfortunately, there are employers who will take advantage of employees who don’t know the law. The California Senate has recently passed a law to protect barbers, cosmetologists, estheticians, manicurists, and electrologists in one area where they can get ripped off: commissions. SB 490 Commission Based Pay Senate Bill 490, introduced by Steven Bradford, regulates employers who attempt to pay barbers and cosmetologists on commission. Significantly, it requires that if an employer chooses to pay an employee licensed as a barber or cosmetologist on commission, then: In addition to the commissions the employee receives, the employee’s base hourly wage (including break times) must be at least two times the minimum wage; and Wages must be paid twice per calendar month. The commission may be either a percentage of services or…Read More
What Is Piece Rate Pay? California offers several legal ways of paying employees. One of these is “piece-rate” compensation. According to the Division of Labor Standards Enforcement (DLSE), this is defined as “Work paid for according to the number of units turned out.” In essence, this means that a person (or team of people) is paid a pre-defined rate for each unit of work they produce. This may include tasks, like truck drivers getting compensated per mile driven, mechanics working at “book rate”, nurses working per medical procedure, or factory workers working per unit produced. The California Labor Code on Piece Rate Pay Unfortunately, this system has resulted in many employers avoiding minimum wage laws and ultimately paying employees less than what they are entitled under the law. The fact that an employer compensates an employee on a piece-rate basis does not end its obligation to the employee. The California Labor Code also requires that…Read More
Wage theft occurs when an employer fails to abide by an employee’s wage and overtime rights. This includes not paying an employee minimum wage, failing to fully pay overtime wages, not accurately counting work hours, and not allowing employees to take their legally entitled breaks. Wage theft is a recurring problem amongst too many employers in California. In fact, wage theft enrages us, as you work hard for your money and the law is designed to make sure that you are compensated fairly and are given breaks. If you suspect that your employer has unlawfully violated your wage and overtime rights, you have options. One of these options is to go it alone and confront your employer, file a formal complaint, or file a lawsuit on your own. However, the do it yourself approach can really backfire on you and end up damaging your ability to collect on a legitimate claim of wage theft. Instead,…Read More
Federal and California laws combine to protect employees from the most extreme types of employer misconduct. High up on the list of misconduct is unlawful wage deductions. You work hard for your money, and under the clearest of laws, the money you earn belongs to you. It is therefore important to understand the circumstances in which an employer can deduct from your wages, and when you should ask questions. Lawful Wage Deduction The California Labor Code sets forth the limitations and limited circumstances in which an employer may deduct from an employee’s wages. These include: Deductions explicitly authorized by federal or state law. Examples of this may include federal income tax or social security withholding, or court ordered child support wage garnishment. However, even if a wage garnishment is permitted by law, an employer is prohibited from terminating an employee if their wages are being garnished. Deductions that have been agreed to by the employee in writing,…Read More
