Key Insights into California’s Legal Obligations for Accurate and Transparent Employee Wage Statements
By: Leiann Laiks, Esq.
In California, employers are mandated to provide employees with itemized wage statements on each pay period or bi-weekly basis.
These statements must include the following nine essential details:
- Gross Wages: The total earnings for the pay period.
- Total Hours Worked: For non-exempt workers, the number of hours worked during the pay period.
- Piece-Rate Information: If applicable, the number of piece-rate units earned and their respective rates.
- Deductions: Any deductions, such as for social security or taxes.
- Net Wages: The final amount earned by the employee after deductions.
- Pay Period Date Range: The dates encompassing the pay period.
- Employee Information: The employee’s name and the last four digits of their social security number.
- Employer Details: The employer’s name and address.
- Hourly Rates and Hours Worked: For non-exempt workers, the hourly rates and the number of hours worked at each rate.
Employee Protections:
Employees who do not receive valid wage statements are entitled to compensation for violations. This includes $50 for a first violation and $100 for subsequent violations, up to a maximum of $4,000. If legal action is necessary, employers may also be liable for court costs and attorney’s fees.
Record Keeping Requirements:
Employers are required to maintain copies of wage statements showing deductions for a minimum of three years. Furthermore, they must allow past and present employees to review these records within 21 days of request. Failure to comply may result in a $750 civil penalty for employers.
This blog is written as of October 2024. Recommendations and legal requirements are changing rapidly, so please continue to review our legal updates or review postings on relevant government websites.
All blogs on this site are for educational purposes only, do not constitute legal advice or opinion, and should not be applied to your situation, or any specific situation, without consultation with counsel. Strategy Law, LLP does not provide any legal advice concerning any matter discussed in a blog except upon formal engagement including, without limitation, execution of Strategy Law, LLP’s formal legal services agreement, and with respect to specific factual situations. No blog constitutes a guarantee, warranty, or prediction regarding the result of any legal matter discussed in the blog or any representation.
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