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Back to Basics

Without a doubt, when my clients call me with a new claim against their company for wage and hour issues, there is always a claim thrown in the mix for failure to properly provide an itemized wage statement to their employees.  While a new law (AB 1506) will allow an employer to cure certain pay stub violations, not all, dealing with these claims is a huge headache for employers. When I ask my clients to see their itemized wage statement provided to their employees, more often than not, they do not state all the necessary items as required by California law.

So let’s go back to the basics.  Every employer, even with payroll companies assisting them, should review their paystubs provided to their employees to ensure compliance.

What does your paystub need to include?  California Labor Code §226, states that each itemized wage statement must state:

1. Gross Wages Earned;

2.  Total hours worked by the employee (i.e. a nonexempt, hourly employee);

3.  The number of piece-rate units earned and applicable piece rate (when employee paid on a piece-rate basis regardless of hours worked);

4.  All deductions;

5.  Net wages earned;

6.  The inclusive dates of the period for which the employee is paid;

7.  Employee’s name and last four digits of their social security number or employee I.D. number;

8.   Name and address of YOU, the employer;

9.  All applicable hourly rates in effect during the pay period and the corresponding number of hours worked at each hourly rate.

Employers are required to provide itemized wage statements that allow their employees to easily and clearly understand their pay calculations.  The legal climate today is wrought with lawsuits in the employment arena and this is one claim that is easily avoidable.  For questions about best practices and California Employment Law basics, contact us today.


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