California Paystub Law Defense Lawyer

In California, the law requires employers to give employees an accurate and itemized wage statement with every pay. There are strict law surrounding employee paystub, wage statement, and the information they must contain.

What Information Needs to Be Included on Wage Statements and Paystubs?

Under California Labor Code 226 (a), “An employer, semimonthly or at the time of each payment of wages, shall furnish to his or her employee, either as a detachable part of the check, draft, or voucher paying the employee’s wages, or separately if wages are paid by personal check or cash, an accurate itemized statement in writing showing:”

• Payment period – All wage statements and paystubs must state the start and end dates of the pay period.
• Gross wages – It must state the employee’s gross wages, before any deductions have been made.
• Itemized deductions – There must be a list of all deductions and the amount deducted for each.
• Net wages – The wage statement or pay stub must also show the employee’s take-home pay or net wages.
• Total hours – It must show the total hours the employee worked during the payment period. The only exception is exempt or salaried employees.
• Applicable hourly rates – It must show all hourly rates that apply during this payment period and the number of hours worked at each rate.
• Employer’s Name and Address – Each pay stub or wage statement must display the employer’s address and legal name.
• Employee’s Name and SSN or EIN – It must also include the employee’s full name and either an employee identification number or the last four digits of their SSN.
• Accrued Paid Sick Leave – The wage statement or pay stub must state the employee’s accrued paid sick leave. If the employer provides unlimited paid sick leave, then they should write unlimited.
  
  

Additional Requirements For Piece-Rate Employees

If an employee is paid on a piece-rate basis, then their wage statement or pay stub must include the applicable piece rates and the total units at each rate. It must also include the total time of rest and recovery breaks, the rate of compensation, and gross wages for the breaks.

If an employer pays less than minimum wage for non-productive time, they must show the rate for non-productive time, total hours of non-productive time, and gross wages for that time. This does not apply if the employer pays an hourly wage of at least minimum wage and a piece-rate compensation on top.

What Are the Penalties for Wage Statement and Pay Stub Violations in California?

Under Labor Code 226(e)(1), if the employee has suffered injury due to an intentional failure of the employer to comply with wage statement and pay stub law, they are entitled to damages. The damages are either the cost of the damages or $50 for the initial pay period where the violation occurred, and $100 for each subsequent pay period violation, capped at $4,000, whichever is greater. The employee’s attorney fees will also be paid if they win their case.

The employer can also face additional civil penalty for violations. This would be $250 per employee for each initial violation and $1,000 per employee for each subsequent violation.

Are there employees which an employer shall not be required to show total hours work?

Under Labor Code 226(j), “An itemized wage statement furnished by an employer pursuant to subdivision (a) shall not be required to show total hours worked by the employee if any of the following apply:

(1) The employee’s compensation is solely based on salary and the employee is exempt from payment of overtime under subdivision (a) of Section 515 or any applicable order of the Industrial Welfare Commission.

(2) The employee is exempt from the payment of minimum wage and overtime under any of the following:

(A) The exemption for persons employed in an executive, administrative, or professional capacity provided in any applicable order of the Industrial Welfare Commission.

(B) The exemption for outside salespersons provided in any applicable order of the Industrial Welfare Commission.

(C) The overtime exemption for computer software professionals paid on a salaried basis provided in Section 515.5.

(D) The exemption for individuals who are the parent, spouse, child, or legally adopted child of the employer provided in any applicable order of the Industrial Welfare Commission.

(E) The exemption for participants, director, and staff of a live-in alternative to incarceration rehabilitation program with special focus on substance abusers provided in Section 8002 of the Penal Code.

(F) The exemption for any crew member employed on a commercial passenger fishing boat licensed pursuant to Article 5 (commencing with Section 7920) of Chapter 1 of Part 3 of Division 6 of the Fish and Game Code provided in any applicable order of the Industrial Welfare Commission.

(G) The exemption for any individual participating in a national service program provided in any applicable order of the Industrial Welfare Commission.

DLSE Hearing or Court

If an employee has a wage statement and pay stub claim, they can filed their action in court or with the DLSE. The benefits of the DLSE is that it is designed for small claims and employees do not need an attorney. It is also informal, free, and quicker. The downside is, the DLSE does not allow recovery of attorneys fees, there is a shorter statute of limitations, and discovery is not permitted.

What if My Pay Stub Doesn’t Include Total Hours Worked?

The employer may have violated labor laws if an employee’s pay stub does not include total hours worked.

There are some types of employees who are exempt:

• External salespeople
• Commercial fishing crew
• Executive employees
• Administrative employees
• Professional employees
• Software professionals who are salaried
• Live-in employees

Exempt employees are generally known as white-collar workers as they are managers, executives, administrators, or professionals.

To be exempt, an employee must meet all three of these requirements:

1. Their primary duties (50% of their time) must be professional, executive, or administrative in nature.
2. They regularly exercise independent judgement and discretion in their duties.
3. Earn a salary which is at least twice the full-time minimum wage.

What Happens If Information is Missing or Incorrect?

If any information is missing or incorrect on a wage statement or pay stub, the employer may be in violation of labor laws. Sometimes, the law may allow employers to correct errors and therefore avoid penalties, in others, they give employees right to pursue legal action.

Can I Sue My Employer If They Are in Violation of Wage Statement and Pay Stub Laws?

If the employee has suffered injury due to an intentional failure of the employer to comply with wage statement and pay stub law, they are entitled to damages. They can claim damages if the employer:

• Fails to provide an accurate or complete wage statement
• Fails to provide a wage statement altogether

In many cases, an employer is violating these laws for multiple or all of their employees, this can lead to class action lawsuits.

Under California labor laws, the employee should be able to easily read pertinent information on their wage statement. The following information is required to be easily found:

• Gross wages
• Net wages
• Amount and reason for deductions
• Employer’s name
• Employer’s address
• Employee’s name
• Employee identification number or last four digits of SSN

The employee is entitled to damages of $50 for the initial pay period for any wage statement or pay stub violations. Additional violations attract $100 awards, capped at $4,000. An employee can also recover court costs and attorney’s fees. Employees can also file for injunctive relief, which would force their employer to follow wage statement and pay stub requirements.

Can An Employer Correct the Pay Stub Errors Without Penalty?

Employers have a 33-day window to fix certain errors without penalty. The errors this applies to are:

• Errors in the pay period dates
• Errors in the name and address of the employer

Once the employer receives notice of the claim, they have 33-days to provide corrected pay stubs and wage statements for 3 years prior to the notice.