Governor Brown goes on a Signing Spree, Changing California Labor Laws
Wage Theft Prevention Act of 2011
According to Section 2810.5 of AB 469, at the time of hire all employers must now inform employees in writing of the rate of pay and how wages will be calculated. In other words, hourly, daily, piece rate, salary, commission or by some other method. If applicable, the employees must also be informed of their overtime rate, allowances, the regular pay date, the name of the business or any other names the business operates under as well as the physical mailing address for the business. AB 469 also requires that any changes made to this information be given to the employees in writing within 7 days of the change. Not only does the existing law require employers to pay penalties and back wages for violating minimum wage laws, it now criminalizes certain wage violations by providing that any employer who willfully violates specified wage orders or willfully fails to pay wages due, if convicted, is guilty of a misdemeanor. It’s important to note that the statute of limitations for collecting penalties under the Division of Labor Standards Enforcement (“DLSE”) has increased from one to three years.
Commission Contracts will be required by 2013
By January 1, 2013 AB1396 will amend the labor code to require employers to have written contracts with all employees who will receive wages from commissions. This contract must also define how these commissions will be calculated and when they will be paid. This does not include bonuses or short term incentives. This should alleviate the guess work and should allow the employees the ability to track and determine, in advance, what their commission pay will be. AB1396 will be particularly helpful to employees that are classified as inside or outside sales people.
Wage Garnishment : Medical Debts are now Exempt
Currently the law requires employers to garnish an employee’s wages up to the portion of the earnings the debtor proves is necessary to support himself or his family. Things like child support payments, back taxes, credit card debt, and other debts can all be subjected to wage garnishment. AB 1388 adds an exemption for debt that is incurred “for the common necessities of life furnished to the judgment debtor” or his or her family, including hospital services and other medical debts.
Even though most of these new laws will take effect January of 2012, it is recommended you speak with an experienced California labor law attorney as soon as possible if you have any questions or concerns about your employment situation.
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