On October 2, 2015, Governor Brown signed AB 1506, which provides some relief to employers guilty wage statement violations. The new law, which went into effect immediately, gives employers an opportunity to “cure” certain wage statement violations within 33 days after they receive notice of them.
California law requires that certain information be included on employee pay stubs, including the name and address of the employer, wages earned, hours worked, deductions, and the inclusive dates of the pay period. (See Labor Code § 226(a)). Employers failing to meet section 226’s requirements can be liable for enormous penalties under California’s Private Attorneys General Act of 2004. Before an employee can bring a claim under PAGA, the employee must provide written notice of the alleged violations to the employer and California’s Labor and Workforce Development Agency. The employee must then wait for a response from the Agency that it does not intend to investigate the alleged violation (or fail to hear from the Agency within 33 days) before commencing a civil action against the employer for penalties on behalf of himself or herself and other current or former employees.
AB 1506 provides some relief to employers guilty of technical violations of California’s wage statement laws. The law amends PAGA to give employers the right to cure violations of alleged violations of Labor Code section 226(a)(6) and (8) – requiring that pay stubs include the employer’s name and address and inclusive dates of the payroll period. Under the law, employers have 33 days from the date of the employee’s notice to the Agency to provide fully compliant, itemized wage statements to each aggrieved employee. Importantly, the bill limits the employer’s right to cure with respect to alleged violations of Labor Code section 226(a)(6) and (8) to once in a 12-month period.
The law requires employers to act quickly to in order to cure any alleged wage statement violations, and employers are cautioned to engage competent counsel immediately after receiving as soon as they receive any written notice of alleged Labor Code violations.
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