Wage and Hour

DLSE Provides Updated FAQs on Wage Theft Prevention Act

DLSE Provides Updated FAQs on Wage Theft Prevention Act

New employees must receive employment and wage information as per the Wage Theft Prevention Act.

As I have discussed with many companies, the new Wage Theft Prevention Act went into effect on January 1, 2012 in California. Part of this law requires employers to provide to all new non-exempt employees (with some exceptions) certain information about their employment. The main provisions of the Act deal with new hires starting in 2012. However, the notice requirements are ongoing. In other words, for current/continuing employees (hired in 2010, for example), when any of the required information changes (for example, an employee gets a raise), the employer has seven (7) calendar days to notify the employee of the change. So, you will have to provide the required information to current/continuing employees when changes of any of the required information are made.

In late-December 2011, the California Department of Labor Standards Enforcement (DLSE) published a sample form that can be used to comply with the new law. It might be easier for employers to use the DLSE’s Form, however the form includes some ambiguities and raises some questions.

To help employers, the DLSE issued FAQs regarding the new law and the DLSE’s Form. The FAQs themselves have been a source of frustration, and already have been revised a couple times – most recently on January 23, 2012. In this most recent update, the DLSE added several new FAQs and revised its answers to two of the original FAQs. The most recent update states that it would be a “best practice” for employers to provide the required information to current employees, even thought the law only requires the information be provided to new hires and to current employees only if there is a change in the required information. As this is a new law in California, employers should continue to monitor my updates, and check with the DLSE for more guidance.

The DLSE Form (available in English and five other languages) and the DLSE FAQs can be found here.