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New Laws for 2015: Wage Statement Violations (CA)


Recently, California Governor Jerry Brown signed into law AB 1506 which provides California employers with a bit of leeway to fix any wage statement violations before a suit can be brought under California's Private Attorneys General Pact ("PAGA").  Under California law, specific information must be included on an employee's pay stub, such as the name and address of the employer, inclusive dates of the pay period, etc.  If an employer violates this part of the Labor Code in regard to the wage statement, an employee can bring suit under the PAGA.  

Under this new law, an employer is now given a limited right to cure certain wage statement violations.  Note, this right to cure is limited to alleged violations of Labor Code section 226(a)(6) and (8).  The law now gives employers 33 days from the postmark date of the notice of a violation to issue a fully compliant pay stub to all aggrieved employees for each pay period for the 3 year period preceding the postmark date of the notice.  Once the employer has cured the violation, written notice (via certified mail) must be given to the complaining employee and the California Labor and Workforce Development Agency that the violation has been cured.  

Assuming the violation has actually been cured, the employee cannot file a claim for penalties against the employer.  However, employers take note:  this right to cure can only be used within any 12 month period for the same violation(s) alleged in the notice, regardless of the location of the worksite!  Even though this is somewhat of a "free pass" that employers are now afforded, it is not a "get out of jail free" card that can be routinely used time and time again.


For additional information:  http://www.bizjournals.com/sacramento/news/2015/10/05/new-law-will-give-employers-a-small-break-on-pay.html

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