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This is the first in a three-part series of articles about California wage statement laws. This installment addresses the items that must be listed on a pay stub and the frequent mistakes employers make. Read the second part here and the third part here.
California HR professionals know the importance of promptly and accurately paying employees for all hours worked and that failing to do so can lead to expensive class-action lawsuits. It's essential to also note that employers that don't list certain information on pay statements can find themselves in hot water.
Complying with California's wage statement provisions is a lot more complicated than people probably think, said Christopher Ahearn, an attorney with Fisher Phillips in Irvine. At first glance, the rules may seem nit-picky, but there are legitimate policy reasons behind a lot of them, he added.
The purpose is to provide transparency to workers regarding wage calculations and to give employees enough information to verify that they are being properly paid, according to the state Division of Labor Standards Enforcement.
"The most common mistakes tend to be technical … usually failing to include one of the various items of information that must be included on each itemized statement," said John Kuenstler, an attorney with Barnes & Thornburg in Los Angeles.
Failure to comply can lead to significant...