Protecting Your Company From Wage and Hour Disputes in California
Wage and hour disputes can be financially devastating to a company in Southern California. California is well-known as one of the most worker-friendly states in the country, a fact that grants workers a wide range of rights. When you violate these rights or overstep, you risk putting your company in a serious legal situation. By teaming up with a business and employment advising attorney in California from the very beginning, you can avoid these common issues and ensure that you are compliant with all state and federal laws. Call the Law Offices of Robin D. Perry at 562-216-2944 to set up a consultation now.
Employers often worry that they lose a substantial amount of money to employees who are overstating their hours or aren’t working efficiently. However, the fact is that wage theft is actually a much larger issue. Per the Economic Policy Institute, 2.4 million workers lose up to $8 billion per year in wage theft. The less someone earns, the greater their chances are of being a victim of wage theft. There are many types of wage theft, including paying workers less than minimum wage, failing to pay overtime, denying meal breaks, and confiscating tips. Knowing this, employers should focus instead on their own compliance to labor laws.
An Overview of Wage and Hour Laws for Non-Exempt Employees in California
The wage and hour laws in California are designed to protect workers and ensure they get appropriate breaks. State law states that an employee working five or more hours must get a 30-minute unpaid meal break. This is in addition to a 10-minute paid break for every four hours worked. The state has one of the highest minimum wages in the country, sitting as $16.00/hour for all employers as of January 2024. Fast Food Restaurant employers, effective April 1, 2024, and Healthcare Facility employers, effective June 1, 2024, will have a higher minimum wage. Further, some cities and counties throughout California have higher minimum wages than the state’s rate. An employee working more than 40 hours per work week or more than eight hours per work day must be paid 1.5 times their regular rate of pay for the excess time worked. If someone works more than 12 hours in one day, they must be paid twice their normal wage.
What happens when an employer violates these laws? On a first violation, an employer must pay back wages in addition to a $50 fine per employee per affected pay period. Each subsequent violation results in a $100 fine per employee per pay period.
Compliance With Accurate Timekeeping and Payroll Auditing
Accurate timekeeping is a cornerstone of protecting your company from wage and hour disputes. Reliable timekeeping systems ensure that employees have control over their clock-in and clock-out times. These systems also make it easier to track break times and any situations that call for overtime pay.
A strong timekeeping system is a good start, but it’s not enough. You should also do regular payroll audits that look at your management team’s processes and protocols. Employers have been taken down by micromanaging supervisors and managers who think they can save the company money by manually rounding down employees’ worked hours.
Break Requirements and Your Company’s Compliance
California’s strict break requirements are a critical part of your wage and hour compliance. Start by ensuring that all employees know their rights and feel comfortable asserting them. You should also be aware of how your supervisors and managers give and enforce breaks. Managers who try to guilt employees into skipping their 10-minute breaks or who interrupt employees’ unpaid meal breaks with questions or work tasks are putting you in the ideal place for an expensive lawsuit or employee dispute.
Preventing Off-the-Clock Work
A significant amount of wage and hour claims come from off-the-clock work. Create crystal-clear policies in the workplace that forbid off-the-clock work and require that all work be done after clocking in and before clocking out. You’ll likely need to monitor and reinforce this policy regularly since it becomes a habit for people to do “just one more” thing after clocking out.
Keep Your Company Safe and Compliant With the Law Offices of Robin D. Perry & Associates
Having the right legal team can help your business thrive and avoid costly lawsuits. Choose the Law Offices of Robin D. Perry & Associates for your company’s continued growth and success. Set up a consultation now by contacting us online or calling us at 562-216-2944.
Attorney Robin D. Perry has been part of the Long Beach Community for over 25 years handling business litigation, employment litigation and advising, criminal defense, personal injury and code enforcement defense for businesses.
