Eight Steps For Examining Your Wage Practices

May 13 2014 - Compensation - HRWatchdog

Last week, California’s Labor Commissioner issued citations totaling more than $1.5 million to two janitorial companies for wage theft violations, including intentionally misclassifying 52 janitorial workers as independent contractors.

The citations issued include assessments to recover the minimum wages, overtime and other premiums. Most employees are owed $30,000 or more, according to a statement from the Labor Commissioner, and the total amount to be returned to the workers is $1,775,765.

Although the Labor Commissioner found that these two employers deliberately disobeyed the law, wage-and-hour laws are extremely technical. It’s entirely possible for an employer to unintentionally violate the law, given California’s complex compliance environment.

Be aware that wage-and-hour compensation issues rank among the most active enforcement areas in employment law.

If you don’t comply with state wage-and-hour practices, you may face heavy fines, civil or criminal penalties, and class-action lawsuits. Self audits can help employers avoid wage-and-hour liability in the workplace, especially in California’s current climate of increased enforcement.

Although employers might cringe when they hear the phrase “self audit,” the process isn’t as bad as it sounds. Like any other process, following a plan makes things simpler. But, these audits can backfire if they’re not conducted properly.

CalChamber members: Download our free Eight Steps For Examining Your Wage Practices white paper. It outlines the key steps you need to take when you prepare a plan for a self audit. The white paper was authored for CalChamber by Jennifer Brown Shaw, Esq., of Shaw Valenza LLP.

Not a CalChamber member? Register here to receive a free copy.

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