In the United States, California has some of the best labor protection laws for employees. As an employer in the state, you can face very stiff penalties if you do not adhere to the state’s strict labor and wage laws. Employers can potentially be the subject of pricey and lengthy class action labor or wage lawsuits if they do not honor employee rights. However, many businesses don’t understand the complications of mistakes regarding wage claims.
What Is a Wage or Hour Violation?
A wage or hour violation is when an employer does not pay their employees the proper minimum or overtime wages, do not allow their employees to take proper breaks, or require their employees to work “off the clock.”
Wage and hour violations also occur when an employee is misclassified as an independent contractor or exempt from certain taxes. In addition to not paying proper minimum or overtime wages, you can also be liable if you do not pay your employees for all time worked on the job. This includes time spent preparing or on-call. Not paying employees bonuses or commissions that they were promised or not repaying them for work-related expenses violates California state wage laws.
If your employees earn tips, requiring them to pool their tips with the business owners or non-tipped employees is also considered a wage and hour violation. In California, employees are permitted to make their own decisions on tip pooling, but it must be without any input from their employer. Attempting to interfere with your employee’s decision on how to split tips can potentially put you at risk of violating wage and hour laws.
What Are California Overtime Laws?
An employer is required to pay their employees overtime wages if they work more than a designated number of hours. In California, the overtime rate is one and a half times the employee’s hourly rate and paid for every hour an employee works over 8 hours in a single day, or 40 hours in a single week.
Overtime wage is also dependent on an employee’s commissions, shift differentials, or non-discretionary bonuses. If you do not consider these factors when determining an employee’s overtime wage amount, it can also be considered a violation of California wage and hour laws.
California labor laws also require employers to pay overtime to their employees for the first eight hours worked if they have worked seven or more days in a row consecutively. Employers must pay the employee double their hourly rate if they work over 12 hours in a single workday and for each hour worked in excess of eight on the employee’s seventh consecutive workday.
What Are California Rest and Meal Break Laws?
California’s labor laws entitle non-exempt employees to a 30-minute lunch break if they work over five hours and an additional ten-minute break for every four hours worked. If an employee works for over 10 hours, they are required to be awarded a second 30-minute break. Employers must provide their employees with a reasonable time period for taking their lunch and cannot prevent or discourage the employee from taking their lunch break.
California has set requirements for meal breaks. When taking a 30-minute lunch break, employers must relieve the employee of all job duties during that time period and not control any of the employee’s activities. Certain circumstances do allow for employees to miss their meal break; however, they should be approached with caution in specific industries. If the employee’s nature of work prevents them from being entirely relieved of their duties, or they agree in writing to relinquish their 30-minute lunch break, it is not required to be taken. If the employee does not take their 30-minute break, they must be compensated for that time.
As an employer, California law requires you to compensate your employees if you do not provide them with a meal or rest break. You must pay your employees for an additional hour at their regular rate for each day that they were not granted a meal or rest break on their next paycheck.
What Are California Reimbursement Laws?
California law states that all employees must be reimbursed for all reasonable work-related expenses. This means that if an employer required certain tools to be purchased by the employee to do their job, or the employee used their own personal vehicle for work, they must be reimbursed for the cost of the tools or their personal vehicle’s mileage.
As an employer, it is essential to have a written guide outlining what is and is not eligible for reimbursement at your business. If you do not establish a clear company policy and communicate it efficiently to your employees, you risk making yourself and your business the subject of a claim.
What Is the Statute of Limitations on Wage Claims in California?
In the state of California, the time period is three years on wage and hour claims related to minimum wage, illegal deductions, and overtime. This time period is from the date the violation took place. If an oral promise to pay more than the minimum wage took place, the statute of limitations is two years to file the claim. If the violation is in regards to a written contract, an employee has four years to file a claim.
As an employer, it is important to remember that California’s labor laws are different and more specific than federal laws. When it comes to an employee’s time and labor, California’s minimum wage, requirement for breaks, and reimbursement policies should be carefully adhered to. Employers that do not follow California labor laws can be subject to costly and time-consuming claims filed by employees.
Help With Wage & Hour Laws for Business
Navigating California’s wage and hour laws can be stressful and, at times, confusing. The attorneys at the law offices of Fishman, Larsen & Callister have significant experience helping employers understand wage and hour laws for many years. We can help you set up your business to avoid litigation issues in the future. If you have further questions regarding California’s labor laws, don’t hesitate to contact us immediately for more information.