2. It permits employees to request time and pay records just as they could previously request personnel records;
3. It provides for greater enforcement measures through moneys from the Wage Security Fund; and
4. It specifically addresses wage theft by contractors, subcontractors, and their agents.
The bill includes new requirements for greater detail in the information that must be included on itemized pay statements provided to employees. The intention is to provide greater transparency to employees on their paystubs to expose employer wrongdoing. Starting January 1, 2017, employers must include the following categories of information on itemized pay statements:
- Date of the payment;
- Dates of work covered by the payment;
- Name of the employee;
- Name and business registry number or business identification number of the employer;
- Address and telephone number of the employer;
- Rate or rates of pay;
- Whether the employee is paid by the hour, shift, day or week or on a salary, piece or commission basis;
- Gross wages;
- Net wages;
- Amount and purpose of each deduction made during the respective period of service that the payment covers;
- Any allowances claimed as part of minimum wage;
- The regular hourly rate or rates of pay, the overtime rate or rates of pay, the number of regular hours worked and pay for those hours, and the number of overtime hours worked and pay for those hours (unless the employee is paid on a salary basis and is exempt from overtime compensation as established by law); and
- The piece rate or rates of pay, the number of pieces completed at each piece rate, and the total pay for each rate, if applicable.
Time and pay records must also be retained for three years after the date of termination, and such records must now be provided to the employee for inspection (whether post-termination or while still employed) upon request.
SB 1587 also addresses wage theft by contractors, subcontractors, and their agents. They cannot intentionally fail to pay an employee the prevailing rate; reduce the rate of wage that an employee would ordinarily receive in order to recoup wages paid in accordance with the prevailing wage statute; withhold, deduct or divert any portion of an employee’s wages (except as permitted by statute); enter into an agreement with an employee whereby the employee would perform work on a public works project at less than the prevailing wage rate; or otherwise deprive an employee of wages due under the prevailing wage statute in an amount that equals or exceeds 25% of wages due or $1,000 in a single pay period, whichever is greater. A violation of this section is now classified as a Class C felony, which can be referred to the district attorney for prosecution.
In addition, where Wage Security Funds can currently be used to pay wage claims, the Commissioner of the Bureau of Labor and Industries will now be authorized to expend Wage Security Funds to both investigate and enforce provisions of wage and hour laws. Industries likely to see checks and inquiries include agriculture, restaurants and hospitality, and construction.
Employers should begin planning now for changes that are anticipated to go into effect on January 1, 2017. Contact your payroll services and consult with your employment counsel on how to plan for compliance and implementation.
Electronic Alerts are written by Barran Liebman attorneys for their clients and friends. Alerts are not intended as legal advice, but as employment law, labor law, and employee benefits announcements. If this has been forwarded to you, and you would like to begin receiving Electronic Alerts directly, please email or call Traci Ray at 503-276-2115. Copyright ©2017 by Barran Liebman LLP.
Las Alertas electrónicas son escritas por abogados de Barran Liebman para sus clientes y amigos. Las Alertas no son proveídas como asesoramiento legal, sino solo como anuncios de leyes de empleo, leyes laborales y beneficios de empleo. Si esto ha sido remetido a usted y quisieras empezar a recibir las Alertas directamente, por favor mándanos un correo electrónico o llama a Traci Ray al 503-276-2115. Derechos de autor ©2017 por Barran Liebman LLP.