December 2024

State Updates

 

California Amends Wage Theft Notice Requirements

12/07/23

Author: ADP Admin/Thursday, December 7, 2023/Categories: Compliance Corner , State Compliance Update, California

California has enacted legislation that amends the notice requirements under the state’s Wage Theft Prevention Act, beginning Jan. 1, 2024

The Details

Existing Law

As Amended by Assembly Bill 636

At the time of hiring, an employer must provide to each employee a written notice, in the language the employer normally uses to communicate employment-related information to the employee, containing the following information:

  • The rate or rates of pay and basis thereof, whether paid by the hour, shift, day, week, salary, piece, commission, or otherwise, including any rates for overtime, as applicable.
  • Allowances, if any, claimed as part of the minimum wage, including meal or lodging allowances.
  • The regular payday designated by the employer in accordance with the requirements of this code.
  • The name of the employer, including any “doing business as” names used by the employer.
  • The physical address of the employer’s main office or principal place of business, and a mailing address, if different.
  • The telephone number of the employer.
  • The name, address and telephone number of the employer’s workers’ compensation insurance carrier.
  • That an employee: may accrue and use sick leave; has a right to request and use accrued paid sick leave; may not be terminated or retaliated against for using or requesting the use of accrued paid sick leave; and has the right to file a complaint against an employer who retaliates.

Beginning Jan. 1, 2024, the notice to all employees must also include information on the existence of a federal or state emergency or disaster declaration applicable to the county or counties where the employee is to be employed, and that was issued within 30 days before the employee’s first day of employment, that may affect their health and safety during their employment.

Beginning March 15, 2024, if an employee is admitted under the federal H-2A agricultural visa program, the employer must include additional information in a separate and distinct section of the notice, in Spanish, and, if requested by the employee, in English, describing an agricultural employee’s additional rights and protection under California law. Employers that employ both H-2A and non-H-2A employees have the option of providing the notice to non-H-2A employees in English or Spanish, at the employee’s request, or in the language that the employer normally uses to communicate employment-related information to non-H-2A employees.

The Labor Commissioner is required to create a template for the notice that complies with the updated requirements and post the template on its internet website by March 1, 2024. However, it is unclear whether an updated template will be posted in time for when the emergency declaration requirement takes effect on Jan. 1, 2024.

An employer must notify their employees in writing of any changes to the information set forth in the notice within seven calendar days after the time of the changes, unless one of the following applies:

  • All changes are reflected on a timely wage statement.
  • Notice of all changes is provided in another writing required by law within seven days of the changes.

No changes


Next Steps
California employers should prepare to comply with the changes made by Assembly Bill 636. Because we do not know if the Labor Commissioner will publish sample notices or guidance addressing the emergency or disaster declaration before Jan. 1, 2024, employers may want to discuss how to address the requirement with legal counsel.

Employers should also keep in mind that they must update their wage theft notices with the state’s expanded paid sick leave requirements, which take effect Jan. 1, 2024. Employers have seven days from the effective date to notify employees and provide updated wage theft notices to new hires.

We will notify clients when the Labor Commissioner releases updated notices.

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