One Minor Technicality On a Paystub Can Cost Employers Big Bucks!
Today's Business Is Susceptible To Lawsuits, Big Fines & Headaches In Areas Employers Take For Granted
- "Imagine being sued by every single one of the employees who worked for you over the past four years because your paystubs have an extra comma in your company's name
- A zip code is missing from your company's address on your paystub
- Your company's paystub includes the pay period end date but not the beginning date
These items sound like minor errors or omissions, and you may not even know that you have done something wrong. But, lawyers are keeping the courts busy filing lawsuits against companies every day because of these paystub infractions that violate CA Wage and Hour laws.
Typically employees aren't harmed by these minor errors but employers are penalized for mistakes they didn't know were wrong. The recent spike in class actions is a siren for employers to learn about Labor Code Section 226(a).
How do you protect yourself against these kinds of actions? How do you stay on top of the ever changing Wage and Hour laws and regulations?
- Do you have a good payroll company to help you?
- Does your payroll company provide you with updates on changing laws and regulations?
- Does your payroll company ensure that you comply with the Wage and Hour laws and regulations like those noted above?
- Does your payroll processor have access to someone who can assist in auditing and updating you on your payroll practices?
If Section 226 is violated, every employee is entitled to recover $50 for the initial violation, and the employer must pay $100 per employee for each subsequent violation, up to a maximum of $4,000 per employee ... plus any attorneys' fees and costs. Devastatingly expensive consequences you don't need.
Initial "Civil Penalties" citations cost $250 per employee ... per violation ... per pay period with $1,000 per employee, per violation for subsequent citations.
- Take preventive steps to minimize your company's exposure
- Audit your company's paystubs to ensure compliance with the nine categories of information required in Section 226
- Seek legal counsel to ensure that your compliance meets hyper-technical standard.
- Strongly consider implementing enforceable arbitration agreements with employees, a great approach to protect the company from a costly class action lawsuit.
Don Dressler Consulting can help you. We have the referrals for high quality payroll providers who can help you to ensure you are in compliance with your payroll processing as well as getting the best service for a reasonable price. If you are using ADP for payroll services, you may be paying too much. Call us and let us help you as you review your current payroll services, both with cost and with compliance matters.
New 2016 Laws Require Your Adherence! ...
For a personal discussion:
Call Don Dressler: 949-533-3742