State Labor Law Enforcement Has Record-Breaking Results

A new report released by the state Labor Commissioner reveals that labor law enforcement over the past two years has broken previous enforcement records. Enforcement efforts in 2011 and 2012 resulted in more minimum and overtime wages found owing to California workers and more monetary penalties for illegal business practices than in any previous years in the past decade.

Some of the key findings of the report, “State of the Division of Labor Standards Enforcement,” include:

• Minimum wage - More than $3 million unpaid minimum wages assessed in 2012 – more than any previous year on record, and an increase of 462 percent from minimum wage assessments in 2010.
• Unpaid overtime – More than $13 million unpaid overtime wages assessed in 2012 – more than any previous year on record, and a 642 percent increase from 2010.
• Civil penalties - More than $51 million in civil penalties assessed in 2012 against employers for violating labor laws – more than any previous year in a decade, and a 150 percent increase from 2010.
• Higher Citation Rate - In 2012, the Labor Commissioner’s Office had the highest rate of civil penalty citations (80 percent) in the past decade (compared to an average citation rate of only 48 percent from 2002 to 2010).
• Industry focus: In 2011 and 2012, the Labor Commissioner’s Office set various records in wage and civil penalty assessments in five major underground economy industries: car wash, restaurant, construction, garment, and agriculture.
• Public works - More than $25 million in wages assessed and civil penalties issued on public works projects in 2012 – the highest amount since 2002.

Understanding California’s complex labor laws is no easy task. State enforcement efforts are on the rise. HRCalifornia subscribers can get detailed up-to-date information on California’s employment laws and regulations. Not a subscriber? Start a free trial now.

Payday Notice

Did you know that you must post a notice that shows the day, time and location of the regular payday in your workplace?

As a convenience, the state provides a small form for this purpose. However, it is satisfactory to post this information in any understandable form.

Gail Cecchettini Whaley, CalChamber Employment Law Counsel/Content

The payday notice is included as part of CalChamber’s California and Federal Employment Notices Poster. This poster contains mandatory updates for 2013.

California Wage Orders Updated

California regulates wages and hours of nonexempt employees by creating documents called Wage Orders. There are 17 Wage Orders. You must determine which Wage Order(s) govern your business and post a copy of the applicable order(s) in your workplace.

Recently, minor technical revisions were made to all 17 Wage Orders. These revisions reflect that the Division of Labor Statics Research was eliminated last year and that many of its previous functions are now handled by the Office of Policy, Research and Legislation.

The revisions also include changes to contact information for the various Division of Labor Standards Enforcement offices throughout the state.

Updated versions of all 17 Wage Orders can be downloaded from HRCalifornia. The Wage Orders are free of charge. In addition, HRCalifornia’s free Wage Order Wizard can help employers determine which Wage Order applies to their business.

Gail Cecchettini Whaley, CalChamber Employment Law Counsel/Content

Reminder: San José Minimum Wage Takes Effect March 11

The new minimum wage of $10 per hour in San José goes into effect on March 11, 2013.

The Minimum Wage Ordinance requires covered employers to pay covered employees a minimum wage of $10.00 per hour for work performed within the City of San José. The ordinance also mandates that, beginning on January 1, 2014, the minimum wage will increase annually if there is an increase in the Consumer Price Index issued by the United States Department of Labor each year.

City officials published detailed information about the new minimum wage for employers and employees on this San José webpage, including an updated frequently asked questions document about the new requirements.

According to the city’s Office of Equality Assurance, the Minimum Wage Ordinance covers:

• Employers that maintain a facility in San José or are subject to the San José business tax; and
• Employees who work at least two hours or more per week in San José, even if their employers are based outside the city limits.

In addition, the ordinance requires covered employers to post a notice* at the workplace of the current minimum wage rates and the employees’ rights under the local law.

Gail Cecchettini Whaley, CalChamber Employment Law Counsel/Content

*CalChamber’s poster reflects the official notice from the city’s Office of Equality Assurance, translated by the office into these languages: English, Spanish, Chinese and Vietnamese. This poster is available at the CalChamber store.

CalChamber members can get more detailed information from HRCalifornia’s HR Library page on federal, state and local minimum wages.

Ready to Spring Forward?

Daylight saving time is set to start Sunday, March 10. This will make for many a cranky worker next Monday morning, and lots of grumbling about needing extra coffee.

For most people, the time shift means adjusting various clocks around the house that aren’t smart enough to adjust themselves and losing an hour of beauty rest.

But people who work the graveyard shift might lose something else. What should employers know about timekeeping practices for workers whose shifts are affected by the time change?

Shane Peterson, Content Development Editor

HRCalifornia subscribers can get the answer in this time change Q&A in the HR Library. Not a subscriber? Take a 15-day Free Trial now.