Are your Paystubs Compliant with California Employment Laws?
Under California employment law, employers are required to provide specific information on their employee pay stubs. Required items include hours worked, deductions, and pay rate. If an employer leaves certain information off the paystub or displays incorrect information, the said employer may be in violation of California employment law and subject to a penalty. Pay Stub violations may carry up to $4,000 in penalties and in some cases more.
If you wish to receive a free Paystub review by a California Employment Attorney, please complete the form on this page and the California employment attorney will get in touch to provide you with a free, confidential Paystub compliancy review. The employment attorney will be able to let you know in 1-2 business days whether or not your paystubs comply with California employment law and what your options are if they do not.
What information needs to be on my pay stub?
The following information is required to be provided in a pay stub or wage statement includes the following:
1. Gross Wages
2. Total Hours Worked
3. Deductions
4. Net Wages
5. The dates of the period for which the employee is paid
6. The Employee’s Name
7. Last four digits of the employee’s social security number (or employee identification number)
8. The Employer Name and Address
9. All applicable hourly rates in effect during the pay period, and the corresponding number of hours worked at each hourly rate by the employee
10. If the employee is paid on a piece-rate basis, the wage statement is required to show the number of piece-rate units earned and any applicable piece rate.
If the employer is a temporary service employer, the rate of pay and total hours worked must be included for each temporary service assignment.
What if my pay stub doesn’t include “total hours worked”?
For most employees, a pay stub or wage statement must include the total hours worked by the employee. If a pay stub does not include total hours worked, the employer may be in violation of California labor code.
What Employees are Exempt?
Some employees are exempt from overtime and minimum wage laws may be exempt from the requirement that their pay stub show “total hours worked.” This includes the following workers:
1. Employed in an executive capacity
2. Employed in an administrative capacity
3. Employed in a professional capacity
4. Outside salespersons
5. Salaried computer software professionals
6. Employees in a live-in alternative to incarceration rehab facility
7. Commercial fishing crew
The largest group of exempt employees are generally known as “white-collar” workers, or those employed in administrative, managerial, executive, or professional capacities.10
In order to qualify as an exempt executive, administrative, or professional employee in California, the employee must meet the following tests:
1. Be primarily engaged in executive, administrative or professional duties (generally, this requires the employee dedicate about 50% or more of his or her work time to these duties);
2. Regularly and customarily exercise discretion and independent judgment on the job; and
Earn a salary equivalent to at least twice the state minimum wage for full-time work (based on a 40-hour workweek).11
If an employee meets the test for an exempt employee, they may be exempt from certain wage and hour laws, including the requirement that a pay stub indicate total hours worked.
