Bill Text: CA AB1744 | 2011-2012 | Regular Session | Amended

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Employee compensation: itemized statements.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Passed) 2012-09-30 - Chaptered by Secretary of State - Chapter 844, Statutes of 2012. [AB1744 Detail]

Download: California-2011-AB1744-Amended.html

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BILL NUMBER: AB 1744	AMENDED
	BILL TEXT

	AMENDED IN SENATE  AUGUST 16, 2012
	AMENDED IN SENATE  JULY 5, 2012
	AMENDED IN ASSEMBLY  MARCH 29, 2012

INTRODUCED BY   Assembly Member Bonnie Lowenthal

                        FEBRUARY 17, 2012

   An act to amend  Sections   , repea 
 l, and add Section  226  of,  and  to amend
  Section  2810.5 of  ,  the Labor Code,
relating to employment.



	LEGISLATIVE COUNSEL'S DIGEST


   AB 1744, as amended, Bonnie Lowenthal. Employee compensation:
itemized statements.
   Existing law requires every employer, semimonthly or at the time
of each payment of wages, to furnish each employee with an accurate
itemized statement in writing showing specified information. Existing
law provides that a knowing and intentional violation of this
provision is a misdemeanor.
   This bill would additionally require  , on and after July 1,
2013,  that the itemized statement include, if the employer is a
temporary services employer, the rate of pay for each assignment
 , the name and address of the legal entities that secured
the services of the employer,  and total hours worked for
each legal entity.  The bill would provide that this
additional information may be furnished as an attachment to the wage
statement provided certain identifying information is included. The
bill would make conforming changes.  
   Existing law requires an employer to provide each employee, at the
time of hiring, with a notice that includes specified information,
such as the rate and the basis, whether hourly, salary, commission,
or otherwise, of the employee's wages, and to notify each employee in
writing of any changes to the information set forth in the notice
within 7 calendar days of the changes unless such changes are
reflected on a timely wage statement or another writing, as
specified.  
   This bill would additionally require that, if the employer is a
temporary services employer, staffing agency, or professional
employer organization, the notice include the name, the physical
address of the main office, the mailing address if different from the
physical address of the main office, and the telephone number of the
legal entity for whom the employee will perform work, and any other
information the Labor Commissioner deems material and necessary 

   Because a willful violation of the bill's provisions would be a
crime, this bill would impose a state-mandated local program.
   The California Constitution requires the state to reimburse local
agencies and school districts for certain costs mandated by the
state. Statutory provisions establish procedures for making that
reimbursement.
   This bill would provide that no reimbursement is required by this
act for a specified reason.
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: yes.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

   SECTION 1.    Section 226 of the   Labor
Code   is amended to read: 
   226.  (a) Every employer shall, semimonthly or at the time of each
payment of wages, furnish each of his or her employees, either as a
detachable part of the check, draft, or voucher paying the employee's
wages, or separately when wages are paid by personal check or cash,
an accurate itemized statement in writing showing (1) gross wages
earned, (2) total hours worked by the employee, except for any
employee whose compensation is solely based on a salary and who is
exempt from payment of overtime under subdivision (a) of Section 515
or any applicable order of the Industrial Welfare Commission, (3) the
number of piece-rate units earned and any applicable piece rate if
the employee is paid on a piece-rate basis, (4) all deductions,
provided that all deductions made on written orders of the employee
may be aggregated and shown as one item, (5) net wages earned, (6)
the inclusive dates of the period for which the employee is paid, (7)
the name of the employee and the last four digits of his or her
social security number or an employee identification number other
than a social security number, (8) the name and address of the legal
entity that is the employer and, if the employer is a farm labor
contractor, as defined in subdivision (b) of Section 1682, the name
and address of the legal entity that secured the services of the
employer, and (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. The deductions made from payment of
wages shall be recorded in ink or other indelible form, properly
dated, showing the month, day, and year, and a copy of the statement
and the record of the deductions shall be kept on file by the
employer for at least three years at the place of employment or at a
central location within the State of California.
   (b) An employer that is required by this code or any regulation
adopted pursuant to this code to keep the information required by
subdivision (a) shall afford current and former employees the right
to inspect or copy records pertaining to their employment, upon
reasonable request to the employer. The employer may take reasonable
steps to ensure the identity of a current or former employee. If the
employer provides copies of the records, the actual cost of
reproduction may be charged to the current or former employee.
   (c) An employer who receives a written or oral request to inspect
or copy records pursuant to subdivision (b) pertaining to a current
or former employee shall comply with the request as soon as
practicable, but no later than 21 calendar days from the date of the
request. A violation of this subdivision is an infraction.
Impossibility of performance, not caused by or a result of a
violation of law, shall be an affirmative defense for an employer in
any action alleging a violation of this subdivision. An employer may
designate the person to whom a request under this subdivision will be
made.
   (d) This section does not apply to any employer of any person
employed by the owner or occupant of a residential dwelling whose
duties are incidental to the ownership, maintenance, or use of the
dwelling, including the care and supervision of children, or whose
duties are personal and not in the course of the trade, business,
profession, or occupation of the owner or occupant.
   (e) An employee suffering injury as a result of a knowing and
intentional failure by an employer to comply with subdivision (a) is
entitled to recover the greater of all actual damages or fifty
dollars ($50) for the initial pay period in which a violation occurs
and one hundred dollars ($100) per employee for each violation in a
subsequent pay period, not exceeding an aggregate penalty of four
thousand dollars ($4,000), and is entitled to an award of costs and
reasonable attorney's fees.
   (f) A failure by an employer to permit a current or former
employee to inspect or copy records within the time set forth in
subdivision (c) entitles the current or former employee or the Labor
Commissioner to recover a seven-hundred-fifty-dollar ($750) penalty
from the employer.
   (g) The listing by an employer of the name and address of the
legal entity that secured the services of the employer in the
itemized statement required by subdivision (a) shall not create any
liability on the part of that legal entity.
   (h) An employee may also bring an action for injunctive relief to
ensure compliance with this section, and is entitled to an award of
costs and reasonable attorney's fees.
   (i) This section does not apply to the state, to any city, county,
city and county, district, or to any other governmental entity,
except that if the state or a city, county, city and county,
district, or other governmental entity furnishes its employees with a
check, draft, or voucher paying the employee's wages, the state or a
city, county, city and county, district, or other governmental
entity shall use no more than the last four digits of the employee's
social security number or shall use an employee identification number
other than the social security number on the itemized statement
provided with the check, draft, or voucher. 
   (j) This section shall become inoperative on July 1, 2013, and, as
of January 1, 2014, is repealed. 
   SEC. 2.    Section 226 is added to the  
Labor Code   , to read:  
   226.  (a) Every employer shall, semimonthly or at the time of each
payment of wages, furnish each of his or her employees, either as a
detachable part of the check, draft, or voucher paying the employee's
wages, or separately when wages are paid by personal check or cash,
an accurate itemized statement in writing showing (1) gross wages
earned, (2) total hours worked by the employee, except for any
employee whose compensation is solely based on a salary and who is
exempt from payment of overtime under subdivision (a) of Section 515
or any applicable order of the Industrial Welfare Commission, (3) the
number of piece-rate units earned and any applicable piece rate if
the employee is paid on a piece-rate basis, (4) all deductions,
provided that all deductions made on written orders of the employee
may be aggregated and shown as one item, (5) net wages earned, (6)
the inclusive dates of the period for which the employee is paid, (7)
the name of the employee and the last four digits of his or her
social security number or an employee identification number other
than a social security number, (8) the name and address of the legal
entity that is the employer and, if the employer is a farm labor
contractor, as defined in subdivision (b) of Section 1682, the name
and address of the legal entity that secured the services of the
employer, and (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 and, if the employer is a temporary
services employer as defined in Section 201.3, the rate of pay for
each temporary services assignment and the total hours worked for
each legal entity. The deductions made from payment of wages shall be
recorded in ink or other indelible form, properly dated, showing the
month, day, and year, and a copy of the statement and the record of
the deductions shall be kept on file by the employer for at least
three years at the place of employment or at a central location
within the State of California.
   (b) An employer that is required by this code or any regulation
adopted pursuant to this code to keep the information required by
subdivision (a) shall afford current and former employees the right
to inspect or copy records pertaining to their employment, upon
reasonable request to the employer. The employer may take reasonable
steps to ensure the identity of a current or former employee. If the
employer provides copies of the records, the actual cost of
reproduction may be charged to the current or former employee.
   (c) An employer who receives a written or oral request to inspect
or copy records pursuant to subdivision (b) pertaining to a current
or former employee shall comply with the request as soon as
practicable, but no later than 21 calendar days from the date of the
request. A violation of this subdivision is an infraction.
Impossibility of performance, not caused by or a result of a
violation of law, shall be an affirmative defense for an employer in
any action alleging a violation of this subdivision. An employer may
designate the person to whom a request under this subdivision will be
made.
   (d) This section does not apply to any employer of any person
employed by the owner or occupant of a residential dwelling whose
duties are incidental to the ownership, maintenance, or use of the
dwelling, including the care and supervision of children, or whose
duties are personal and not in the course of the trade, business,
profession, or occupation of the owner or occupant.
   (e) An employee suffering injury as a result of a knowing and
intentional failure by an employer to comply with subdivision (a) is
entitled to recover the greater of all actual damages or fifty
dollars ($50) for the initial pay period in which a violation occurs
and one hundred dollars ($100) per employee for each violation in a
subsequent pay period, not exceeding an aggregate penalty of four
thousand dollars ($4,000), and is entitled to an award of costs and
reasonable attorney's fees.
   (f) A failure by an employer to permit a current or former
employee to inspect or copy records within the time set forth in
subdivision (c) entitles the current or former employee or the Labor
Commissioner to recover a seven-hundred-fifty-dollar ($750) penalty
from the employer.
   (g) The listing by an employer of the name and address of the
legal entity that secured the services of the employer in the
itemized statement required by subdivision (a) shall not create any
liability on the part of that legal entity.
   (h) An employee may also bring an action for injunctive relief to
ensure compliance with this section, and is entitled to an award of
costs and reasonable attorney's fees.
   (i) This section does not apply to the state, to any city, county,
city and county, district, or to any other governmental entity,
except that if the state or a city, county, city and county,
district, or other governmental entity furnishes its employees with a
check, draft, or voucher paying the employee's wages, the state or a
city, county, city and county, district, or other governmental
entity shall use no more than the last four digits of the employee's
social security number or shall use an employee identification number
other than the social security number on the itemized statement
provided with the check, draft, or voucher.
   (j) This section shall become operative on July 1, 2013. 

  SECTION 1.    Section 226 of the Labor Code is
amended to read:
   226.  (a) Every employer shall, semimonthly or at the time of each
payment of wages, furnish each of his or her employees, either as a
detachable part of the check, draft, or voucher paying the employee's
wages, or separately when wages are paid by personal check or cash,
an accurate itemized statement in writing showing (1) gross wages
earned, (2) total hours worked by the employee, except for any
employee whose compensation is solely based on a salary and who is
exempt from payment of overtime under subdivision (a) of Section 515
or any applicable order of the Industrial Welfare Commission, (3) the
number of piece-rate units earned and any applicable piece rate if
the employee is paid on a piece-rate basis, (4) all deductions,
provided that all deductions made on written orders of the employee
may be aggregated and shown as one item, (5) net wages earned, (6)
the inclusive dates of the period for which the employee is paid, (7)
the name of the employee and the last four digits of his or her
social security number or an employee identification number other
than a social security number, (8) the name and address of the legal
entity that is the employer and, if the employer is a farm labor
contractor, as defined in subdivision (b) of Section 1682, the name
and address of the legal entity that secured the services of the
employer, (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, and (10), if the employer is a temporary
services employer as defined in Section 201.3, the name and address
of the legal entities that secured the services of the employer, the
rate of pay for each temporary services assignment, and total hours
worked for each legal entity. The information required by item (10)
can be furnished on an attachment to the wage statement provided the
attachment includes the employee's name and the last four digits of
his or her social security number or employee identification number.
The deductions made from payment of wages shall be recorded in ink or
other indelible form, properly dated, showing the month, day, and
year, and a copy of the statement and the record of the deductions
shall be kept on file by the employer for at least three years at the
place of employment or at a central location within the State of
California.
   (b) An employer that is required by this code or any regulation
adopted pursuant to this code to keep the information required by
subdivision (a) shall afford current and former employees the right
to inspect or copy records pertaining to their employment, upon
reasonable request to the employer. The employer may take reasonable
steps to ensure the identity of a current or former employee. If the
employer provides copies of the records, the actual cost of
reproduction may be charged to the current or former employee.
   (c) An employer who receives a written or oral request to inspect
or copy records pursuant to subdivision (b) pertaining to a current
or former employee shall comply with the request as soon as
practicable, but no later than 21 calendar days from the date of the
request. A violation of this subdivision is an infraction.
Impossibility of performance, not caused by or a result of a
violation of law, shall be an affirmative defense for an employer in
any action alleging a violation of this subdivision. An employer may
designate the person to whom a request under this subdivision will be
made.
   (d) This section does not apply to any employer of any person
employed by the owner or occupant of a residential dwelling whose
duties are incidental to the ownership, maintenance, or use of the
dwelling, including the care and supervision of children, or whose
duties are personal and not in the course of the trade, business,
profession, or occupation of the owner or occupant.
   (e) An employee suffering injury as a result of a knowing and
intentional failure by an employer to comply with subdivision (a) is
entitled to recover the greater of all actual damages or fifty
dollars ($50) for the initial pay period in which a violation occurs
and one hundred dollars ($100) per employee for each violation in a
subsequent pay period, not exceeding an aggregate penalty of four
thousand dollars ($4,000), and is entitled to an award of costs and
reasonable attorney's fees.
   (f) A failure by an employer to permit a current or former
employee to inspect or copy records within the time set forth in
subdivision (c) entitles the current or former employee or the Labor
Commissioner to recover a seven-hundred-fifty-dollar ($750) penalty
from the employer.
   (g) The listing by an employer of the name and address of the
legal entity that secured the services of the employer in the
itemized statement required by subdivision (a) shall not create any
liability on the part of that legal entity.
   (h) An employee may also bring an action for injunctive relief to
ensure compliance with this section, and is entitled to an award of
costs and reasonable attorney's fees.
   (i) This section does not apply to the state, to any city, county,
city and county, district, or to any other governmental entity,
except that if the state or a city, county, city and county,
district, or other governmental entity furnishes its employees with a
check, draft, or voucher paying the employee's wages, the state or a
city, county, city and county, district, or other governmental
entity shall use no more than the last four digits of the employee's
social security number or shall use an employee identification number
other than the social security number on the itemized statement
provided with the check, draft, or voucher. 
   SEC. 2.   SEC. 3.   Section 2810.5 of
the Labor Code is amended to read:
   2810.5.  (a) (1) At the time of hiring, an employer shall provide
 to  each employee a written notice, in the language the
employer normally uses to communicate employment-related information
to the employee, containing the following information:
   (A) The rate or rates of pay and basis thereof, whether paid by
the hour, shift, day, week, salary, piece, commission, or otherwise,
including any rates for overtime, as applicable.
   (B) Allowances, if any, claimed as part of the minimum wage,
including meal or lodging allowances.
   (C) The regular payday designated by the employer in accordance
with the requirements of this code.
   (D) The name of the employer, including any "doing business as"
names used by the employer.
   (E) The physical address of the employer's main office or
principal place of business, and a mailing address, if different.
   (F) The telephone number of the employer.
   (G) The name, address, and telephone number of the employer's
workers' compensation insurance carrier.
   (H) Any other information the Labor Commissioner deems material
and necessary.
   (2) The Labor Commissioner shall prepare a template that complies
with the requirements of paragraph (1). The template shall be made
available to employers in such manner as determined by the Labor
Commissioner. 
   (3) If the employer is a temporary services employer, staffing
agency, or professional employer organization, the notice described
in paragraph (1) must also include the name, the physical address of
the main office, the mailing address if different from the physical
address of the main office, and the telephone number of the legal
entity for whom the employee will perform work, and any other
information the Labor Commissioner deems material and necessary.

   (b) An employer shall notify his or her employees in writing of
any changes to the information set forth in the notice within seven
calendar days after the time of the changes, unless one of the
following applies:
   (1) All changes are reflected on a timely wage statement furnished
in accordance with Section 226  or, if the employer is a
temporary services employer as defined in Section 201.3, an
attachment to that wage statement if the change is to information
properly reflected on the attachment in accordance with Section 226
 .
   (2) Notice of all changes is provided in another writing required
by law within seven days of the changes.
   (c) For purposes of this section, "employee" does not include any
of the following:
   (1) An employee directly employed by the state or any political
subdivision thereof, including any city, county, city and county, or
special district.
   (2) An employee who is exempt from the payment of overtime wages
by statute or the wage orders of the Industrial Welfare Commission.
   (3) An employee who is covered by a valid collective bargaining
agreement if the agreement expressly provides for the wages, hours of
work, and working conditions of the employee, and if the agreement
provides premium wage rates for all overtime hours worked and a
regular hourly rate of pay for those employees of not less than 30
percent more than the state minimum wage.
   SEC. 3.   SEC. 4.   No reimbursement is
required by this act pursuant to Section 6 of Article XIII B of the
California Constitution because the only costs that may be incurred
by a local agency or school district will be incurred because this
act creates a new crime or infraction, eliminates a crime or
infraction, or changes the penalty for a crime or infraction, within
the meaning of Section 17556 of the Government Code, or changes the
definition of a crime within the meaning of Section 6 of Article XIII
B of the California Constitution.