Part 2 of a 4-part series on California Wage and Hour Law
changes.
Wage and Hour compliance is one of the most challenging areas of
HR and one area where having an outsourced HR team of experts can save you a
lot of money by lowering risk for workplace compliance. In 2015, many new laws
have placed additional obligations on employers and have expanded liability.
Increased Liability for
Employers That Contract for Labor:
When employers use contracted labor, such as a staffing agency,
the employer can be held liable for wage and hour violations. In other words,
if a labor contractor fails on any of these levels: fair pay, providing
workers’ compensation, mandatory sick leave to its provided labor the “client
employer” can now be held legally responsible AND liable. For more information,
review the Labor
Contractor (AB 1897) — Fact Sheet.
Did you know that OmegaComp HR has a fully compliant staffing
service? Contact us today
for more information.
Rest and Recovery Periods
SB 1360 expands definitions of on-the-clock time for recovery from heat
illness as paid breaks and counts towards hours worked. SB 1360 reiterates what
is already law and was passed simply to clear up any employer confusion.
Waiting Time Penalties
AB 1723 authorizes for a penalty imposed upon an employer for the
willful failure to timely pay wages of an employee who resigns or is
discharged, also known as “waiting time”.
AB 2743,
provides a waiting time penalty if unionized theatrical and concert venue
employers violate any agreed upon time frame for payment of final wages
contained in a collective bargaining agreement.
Protections for Complaints
Under the Labor Code
AB 2751 clarifies that a $10,000 penalty fined to an employer who
discriminates or retaliates against an employee who complains of Labor Code violations will be awarded to the employee or employees who “suffered the
violation.”
Timeframe for Recovery of
Wages: Liquidated Damages
AB 2074 authorizes an employee to bring a civil lawsuit against his/her
employer for the unpaid balance of wages or compensation owed to that employee.
Also permits an employee to recover liquidated damages equal to
the unpaid wages plus interest in a court action alleging payment of less than
the state minimum wage any time within the statute of limitations.
Child Labor Law Violations:
Increased Remedies
AB 2288,
the Child
Labor Protection Act of 2014, provides additional penalties for
violations of California laws regarding employment of minors, including a
penalty of $25,000 - $50,000 for “Class A” violations involving minors 12 years
of age or younger.
In addition, the statute of limitations for claims that arise
from violations of employment laws is extended, until the minor is 18 years of
age.
Foreign Labor Contractors
SB 477 Employers are prohibited from using non-registered foreign labor
contractors to supply workers in California. SB 477 also imposes disclosure
requirements and other obligations on foreign labor contractors. There are
penalties for noncompliance and joint liability for employers who use
non-registered foreign labor contractors and potential for civil action.
Prevailing Wages
A number of bills signed this year relate to prevailing wages.
Employers who provide services or construction work on public works projects
for the government or public entities must pay the prevailing wage,
which is usually significantly higher than the minimum wage.
The bills include:
§ AB 26;
Public Works: defines the term “public works” for purposes of requirements
regarding the payment of prevailing wages.
§ AB 1870;
Public Works; requires that, except as specified, not less than the
general prevailing rate of per diem wages, determined by the Director of
Industrial Relations, be paid to workers employed on public works projects with
regards to apprenticeship.
§ AB 1939;
Public Works; allows a contractor to bring an action against “hiring parties”
to recover any increased costs (including labor costs, penalties and legal
fees) incurred because of a determination that the work performed on the
project was a covered public work and is subject to prevailing wage laws
§ AB 2272;
Public Works; defines “public works” to include construction, alteration,
demolition, installation, or repair work done under contract and paid for in
whole or in part out of public funds.
§ AB 2744;
Public Works; imposes a civil penalty on contractors/subs who are determined to
have knowingly violated provisions regulating the employment of apprentices on
public works projects. The contractor/sub who is determined to have knowingly
committed a s violation may additionally be denied the right to bid on or be
awarded or perform work and provides for a process to collect the civil
penalty.
§ SB 266;
Another notable bill, SB 266, responds to concerns regarding delays in
determining whether a project is a public works project for prevailing wage
purposes
Background Checks
Several new laws relate to criminal background checks.
Criminal History
Information in Public Contracts
AB 1650 requires contractors who bid on state contracts involving
on-site construction-related services to verify that they will not ask
applicants for the on-site construction-related jobs to disclose information
concerning criminal history at the time of an initial employment application.
Services to Minors
AB 1852 requires a business that provide specified services to minors,
must provide a written notice to the parent or guardian of the minor receiving
those services. The written notice should address the business’s policies
relating to employee criminal background checks.
http://omegacomp.com/2015-california-employment-laws-part-2-wage-hour/
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