How California Employers Can Protect Themselves from Wage and Hour Claims
California has some of the most comprehensive wage and hour regulations in the entire country. All businesses and organizations that operate in California must comply with both federal and state wage and hour laws. A proactive approach is one of the keys to preventing claims. Here, our Fremont employment lawyer for preventing claims highlights best practices companies and organizations can use to protect themselves against wage and hour liability.
What Employers Should Know About Wage and Hour Laws in California
Wage and hour laws regulate worker hours, pay, and benefits. A key thing for employers in the Bay Area to know is that California’s wage and hour laws are among the most employee-protective in the country. Employers must comply with the federal Fair Labor Standards Act (FLSA), the California Labor Code, and all applicable Industrial Welfare Commission (IWC) Wage Orders. Here are some of the key requirements:
- Employers must meet the state or local minimum wage
- Employers must provide required meal and rest breaks
- Employers must provide proper overtime compensation
California’s Labor Commissioner (DLSE) actively enforces wage and hour rules. Employees can file administrative wage claims or pursue civil actions for unpaid wages, missed breaks, or overtime violations. The state’s Private Attorneys General Act (PAGA) empowers employees to bring wage and hour claims against employers on behalf of similarly situated workers. Employers found in violation could face liability for unpaid wages, liquidated damages, penalties, and attorney’s fees
Best Practices for Employers to Prevent Wage and Hour Claims
1. Maintain Accurate Time-Keeping Systems
Time-keeping matters. You should use reliable, verifiable systems to record all hours worked, including start and end times, meal breaks, and off-the-clock work. Even small violations of time-keeping regulations can lead to serious liability.
2. Review Worker Classifications
Workers in California must be properly classified. Employers should confirm that exempt employees meet both the salary basis and duties tests. A company that misclassifies a worker, including improperly classifying them as an independent contractor, could face a wage and hour claim.
3. Implement Comprehensive Written Policies
Many employers in California can benefit from comprehensive written wage and hour policies. You should provide clear, accessible policies regarding overtime authorization, breaks, and other relevant procedures.
4. Train Supervisors and Managers
Proactive training of supervisory employees can help. Supervisors, managers, and the HR department (if there is one) must understand how wage and hour violations occur.
5. Conduct Regular Audits of Wage and Hour Policies
Finally, employers in California can prevent wage and hour claims by conducting regular, comprehensive audits of their wage and hour policies. An employer lawyer for employers can help.
Speak to Our Fremont Employment Lawyer for Employers today
Lynnette Ariathurai is a California business lawyer with extensive experience representing employers. If you have any questions or concerns about how to prevent wage and hour claims, please do not hesitate to contact us today for a fully confidential consultation. With an office in Fremont, we provide legal services to employers throughout the San Francisco Bay Area.