California Enacts an Increase in Piece-Rate Worker Compensation, with Retroactive Repercussions for Resolving Back Wage Claims Without Litigation

APPLIES TO

All California Employers who Employ Piece-Rate Employees

EFFECTIVE

January 1, 2016

QUESTIONS?

Contact HR On-Call

(888) 378-2456

On October 10, 2015, Gov. Brown signed AB 1513 into law, adding Section 226.2 to the California Labor Code.  This legislation is a response to prior court rulings related to required compensation for mandated breaks and other nonproductive time. Specifically, the bill sets forth minimum compensation requirements for rest and recovery periods and other nonproductive time for piece-rate workers, in addition to and separate from their established piece rates.  Each type of compensation must also be documented on an employee’s paystub.  Additionally, employers who have not been paying piece-workers for this additional time have the opportunity to resolve back claims without litigation.  This statute will become effective on January 1, 2016, but will have retroactive repercussions for wages earned as of July 1, 2012.

This information applies to all companies who employ piece-rate workers in California.  Examples of employees who are compensated as piece-rate workers include, but are not limited to, those who may do installation work, closing financial transactions when paid a flat rate, agricultural work, manufacturing work, logistics work when a piece rate applies to drivers’ deliveries, etc.

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California Takes the Lead in Enhancing Protections for Gender Wage Equality & Wage Transparency

APPLIES TO

All California Employers and Employees

EFFECTIVE

January 1, 2016

QUESTIONS?

Contact HR On-Call

(888) 378-2456

On October 6, 2015, Governor Brown signed into law Senate Bill (SB) 358, referred to as the Fair Pay Act.  The Act amends Labor Code Section 1197.5 to require that employers prove wage disparities among men and women are not gender based.  The Act also penalizes employers for preventing employees from discussing wages.  Finally, it increases recordkeeping requirements.  These requirements apply both to California employers and companies with employees in California.  Although the changes become effective January 1, 2016, employers need to prepare for the effects the changes will create.  Additionally, the Act may lead to increased litigation, because the hurdles are being lowered for plaintiffs to bring lawsuits.  It may also be a gateway for new class action lawsuits, because attorneys will likely be looking for systemic gender wage disparity within individual companies.

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