7 Wage and Hour Laws Every Employer Needs to Know

Being aware of the basic wage and hour laws that employers must comply with is critical to keeping your operation running smoothly while minimizing employer liability.

Small business owners are particularly challenged when it comes to staying abreast with labor laws because they are busy running their businesses and don’t have the advantage of in-house HR or counsel that larger businesses may have.

Plaintiff attorneys usually will fish first for obvious wage and hour violations. There isn’t any ignorance defense when you have a hungry plaintiff attorney looking at your HR practices with a microscope, hoping to find something they can hang a lawsuit on.

Here are the top 7 Wage and Hour Laws you should be aware of:

Meal Breaks: California law requires that all hourly (non-exempt) employees be provided with a minimum of 30 minutes (unpaid) for a meal break before 5 hours of work is completed unless 6 completes the day and the employee waives their right to a meal break. Employees should be paid a 1 hour meal break violation if lunch is later than 5 hours or shorter than 30 minutes.

Rest Breaks: Rest breaks must be 10 minutes (paid) for every 4 hours worked and may not be combined with meal breaks. Employers may not substitute employee rest breaks for periodic employee breaks such as smoke or bathroom breaks.

Overtime Pay: Hourly (non-exempt) employees are due 1 ½ their regular pay rate for hours worked over 8 in a day or 40 in a week. Employees must receive 2 times their regular pay rate for hours over 10 in a day. When 7 days are worked in one workweek, 1 ½ times their regular pay rate.

Recording Work Hours: Employers must record all hours worked by employees as well as clocking in and out for meal breaks. Time records must be accurate to the minute and be kept on file for a minimum of 3 years. Electronic timekeeping is highly recommended.

Sick Pay: Employers are mandated to provide at least 24 hours of annual paid sick pay, available after 90 days of work, Sick pay can be accrued at 1 hour for every 3 hours worked, tracked from their first day or work, or given as a lump sum at 90 days or every year thereafter. Employees may not be disciplined for absences while using available sick pay.

Final Pay: Employees are entitled to all final pay due at the time and place of termination if involuntarily terminated, or 72 hours after voluntarily resigning. Final checks should not be paid via direct deposit unless by written request of the employee.

Working Off the Clock: Working off the clock should never be allowed for any reason, whether it is for meetings, training, working while on a meal break, answering an email or text while off work, and even taking the trash out our setting the alarm after clocking out.

Pay Stubs: California law requires that employees receive detailed pay stubs with information about hours worked, rates of pay, deductions, name and address of the business, available sick pay, and more.

Penalties for Failure to Comply with California Wage and Hour Laws
California has serious penalties for employers who fail to comply with wage and hour laws. The penalties can be associated with not providing meal breaks, overtime pay, or paying final wages later than the law allows. These penalties are compounded by late payment penalties which can skyrocket, not to mention plaintiff attorneys which can use PAGA laws to solicit other employee’s time records.

The guidelines above are general in nature and should not be solely used to ensure compliance. Every situation is different and requires expert scrutiny to determine best practice. The HR experts at Infinium are here for you to help you structure a solid foundation of best policies and practices to help you navigate California’s toughest labor laws. Don’t hesitate to give us a shout out!