New Year, New Compliance Strategies: Comprehensive Wage Statement Review
In recent months, we’ve shared with you several opportunities to increase your compliance with California employment law in 2024 and beyond. We’ve introduced you to our streamlined employee handbook process, our comprehensive Compliance Plan certification program, a first-of-its kind online arbitration agreement rollout system, and the groundbreaking online wage and hour training through Cal Comply.
As many of you know, California employment law compliance is not about good intentions—it’s about following the rules to the letter of the law. This holds true with employee wage statements (paystubs). Even seemingly minor violations of the Labor Code, like the wrong corporate address, can carry with them crushing penalties. These penalties apply to every employee, for every wage statement, for every pay period for up to a year until the violations are fixed. The legal standard is perfection, and anything short of that is fodder for enterprising plaintiffs’ lawyers looking for an easy class and/or PAGA action.
Common Wage Statement Violations to Avoid
While not an exhaustive list, here are some potential wage statement violations California employers may face:
Pay Period Information. It's important to provide details about the pay period, including the start and end dates.
Total Hours Worked. Wage statements should include the total hours worked each pay period.
Deductions. Employers should ensure all proper deductions are appropriately itemized.
A Quick, Low-Cost Review of Your Wage Statements
Recognizing that employers distribute these wage statements to their entire workforce as frequently as weekly, we wanted to provide our clients with an efficient, low-cost solution to arm them with the information to get these wage statements right. For a flat fee, Medina McKelvey’s compliance team will thoroughly review a sample of your company’s California wage statements for legal compliance and provide a written report, identifying any areas of non-compliance and providing instructions to address any compliance lapses.
Even if you may have had your wage statements reviewed in the past, we recommend at least an annual review, especially if your payroll provider has changed or updated systems.
Please contact us if you’d like more information.
