This is the sixth post in our monthly series of CDF’s Labor & Employment Law Blog providing California employers with wage and hour compliance tips and best practices.
Under California Labor Code section 226, an employer, semimonthly or at the time of each payment of wages, must furnish employees an “accurate itemized statement in writing” reflecting, at least, nine specifically delineated items. Commonly referred to as paystubs or wage statements, these perfunctory additions to almost every paycheck seem simple enough and might not garner a second glance from most employees or even the employer. Relying on a third-party payroll provider that automatically generates wage statements is a trap. Ensuring strict compliance with the requirements of Labor Code section 226 is imperative to avoid potentially costly litigation for California employers, and pointing the finger at the payroll provider as a defense isn’t going to work.
Claims under Labor Code section 226 remain fertile ground for litigation in California on both an individual basis, but perhaps more significantly, on a representative basis through a class action or as an action brought under California’s Private Attorneys General Act (“PAGA”) where the penalties can add up very quickly.
These claims typically take one of two forms, as (1) a derivative lawsuit, or (2) a direct wage statement violation; and most of these lawsuits, at least at the pleading stage, will contain both. As a derivative lawsuit, the basis...
In certain instances, it is evident that misinformation is created and disseminated on social media by exploiting sensitive issues and presenting unverified claims as factual events. Presented bel...