AB 469 (the Wage Theft Prevention Act) requires that employers provide each non-exempt employee, at the time of hiring, with a written notice specifying the employee's wage rate and the basis of calculation, whether hourly, salary, commission, or otherwise. If any of this information changes during the course of employment, the employer must notify each affected employee in writing within 7 calendar days of the changes unless such changes are reflected on a timely wage statement. No notice is required for an employee who either is exempt from the payment of overtime or is covered by a collective bargaining agreement containing the specified information. Employers should examine their offer letter forms and payroll practices to assure compliance with these notice requirements, and retain copies of the mandated notice in the subject employee's personnel file.
AB 469 also extends to three years (previously two) the period that employers are required to retain payroll records. It directs that employers may not prohibit employees from keeping personal records of their time worked or piece-rate units earned. The statute provides that employers violating minimum wage may be subject to actions for restitution of wages to the employee. This bill also criminalizes the willful violation of certain wage statutes or orders, or willful failure to pay a final court judgment or final order of the Labor Commissioner for wages due. The bill also extends the period for the Labor Commissioner to commence a collective action for penalties or fees from one year to three years.
