California labor and employment laws can be confusing and difficult to navigate for employers and business owners. The bulk of employment regulations are designed to protect employees' rights and will heavily favor the employee in disputes regarding the amount of wages owed.
There is no way to guarantee that your business will not face lawsuits from current or past employees. However, there are several steps an employer can take to minimize the risk of being sued.
A consistent risk reduction tool across business practices is the creation and safekeeping of proper documentation because legal disputes require scrutiny by strangers who were not present at the time of the events. Keeping records of wage statements and hours worked is not only a good business practice but is usually required by law.
An employer should keep records of hours worked and wages paid for all employees for the duration of their employment and for no less than three years after the employee separates from the company. Labor Code 226 also requires that an employee be allowed to inspect these records upon request.
Labor Code 226 requires employers to provide detailed wage statements to employees every pay period. There are several items that the wage statements must include. Using a payroll service does not guarantee that wage statements comply with the law. Therefore, an employer should carefully analyze wage statements to ensure they contain all of...
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