In the state of California, wage orders are employment laws that dictate the responsibilities employers have towards their employees in terms of wages, hours, and working conditions. The Industrial Welfare Commission (IWC), which was established to regulate these aspects, has created 17 wage orders that apply to various industries and occupations.
Each wage order covers different sectors ranging from manufacturing to agricultural businesses and beyond, ensuring that specific industries comply with rules tailored to their operational realities. They include regulations on minimum wage, overtime pay, meal and rest breaks, minimum necessary facilities (like clean bathrooms and changing rooms), and other working conditions.
What Are Employers Obligated to Do?
Employers in California are obligated to adhere to the provisions set forth by the applicable wage orders. This means they must:
Pay at Least the Minimum Wage
Under California wage orders, employers are required to pay non-exempt employees a minimum wage that is compliant with both state and, where applicable, local ordinances. The California state minimum wage for employers with 26 or more employees is $15.50 per hour. Employers must stay informed of the current minimum wage requirements and adjust their payroll accordingly to ensure compliance.
The minimum wage is just that—the minimum. Employers are free to pay more but not less. The minimum wage also serves as a baseline for calculating overtime pay and other wage-related benefits.
Provide Overtime Compensation as Required
In general, non-exempt employees must receive overtime pay for:
- Hours worked over 8 in a single workday;
- Hours worked over 40 in a workweek;
- The first 8 hours worked on the seventh consecutive day of work in a workweek.
The standard overtime rate is 1.5 times the employee’s regular rate of pay. Additionally, hours worked beyond 12 in a workday or beyond 8 on the seventh consecutive day of work in a workweek are subject to double the employee’s regular rate of pay.
Employers must carefully track hours to ensure proper compensation and prevent violations. Disregarding overtime rules can lead to legal consequences, including penalties and back wages. A local California attorney can help ensure compliance with overtime rules.
Allow for Meal and Rest Breaks as Dictated by the Order
California wage orders require that employers provide non-exempt employees with rest breaks and meal periods. Employees are entitled to a 10-minute rest period for every 4 hours worked or major fraction thereof. Also, employees must be given a 30-minute meal break if they work more than 5 hours in a day and a second meal period if they work more than 10 hours. These breaks must be uninterrupted and duty-free, and the meal breaks can only be waived if the work period is not more than 6 hours.
Failure to provide these breaks appropriately can result in penalty payments to the employee for each day that a break was not properly provided, known as “meal period premium” or “rest period premium” pay.
Maintain a Compliant Working Environment
Employers must ensure that the workplace is safe and healthy in accordance with the California Occupational Safety and Health Act (Cal/OSHA) regulations. Additionally, wage orders may require that certain facilities be provided, such as suitable seating, temperature control, clean restrooms, and changing rooms.
Compliance also extends to the prohibition of harassment and discrimination in the workplace and adherence to all applicable labor laws concerning the treatment and conditions of employees.
Keep Accurate Records of Hours Worked and Wages Paid
Accurate record-keeping is another responsibility of the employer. California law requires employers to keep detailed records of the hours their employees work and the wages they are paid. These records must include the employee’s name, occupation, dates of employment, wages earned, hours worked, all deductions, and other necessary details as prescribed by the wage order.
These records must be kept for a minimum period, typically at least three years, and be available for inspection by the employee or relevant authorities upon request. Accurate records not only ensure transparency and fairness but also serve as vital evidence in the event of a wage claim or audit.
Provide Itemized Wage Statements to Employees
Each time wages are paid, employers must provide employees with an itemized statement that details the specifics of the pay period.
This wage statement must include:
- The total hours worked;
- The number of piece-rate units earned, if applicable;
- All deductions;
- Net and gross wages;
- The dates of the pay period;
- The employee’s name and the last four digits of their Social Security Number or an employee identification number; and
- The name and address of the legal entity that is the employer.
Failure to provide these wage statements as required can result in penalties and could be seen as a sign of non-compliance with other wage and hour laws, compounding potential legal issues for an employer.
In all these areas, diligence and attention to the details of California’s wage orders are not just best practices—they’re legal requirements. Ensuring compliance is necessary for the well-being of employees and the legal and financial health of the business.
Do California Wage Orders Apply to Public Employees?
California wage orders generally do not apply to public employees. Public employees are those who work for the government—whether at the state, city, or municipal level. These employees are typically governed by other statutes and regulations that dictate their wages and working conditions.
However, some occupations subject to Wage Orders Nos. 5 and 14, such as public housekeeping and agricultural workers, are covered by the Wage Orders. The Fair Labor Standards Act (FLSA) also applies to public employees if an employment relationship exists.
Are There Any Exceptions to California Wage Orders?
Yes, there are exceptions to California wage orders. For example, certain individuals may be classified as exempt employees. Exempt employees, such as those in executive, administrative, or professional roles, may not be subject to the same wage and hour laws as non-exempt employees. Additionally, independent contractors are not covered by wage orders because they are not considered employees under California law.
How Are California Wage Order Disputes Resolved?
Disputes over wage orders in California are typically resolved either through administrative remedies provided by the Division of Labor Standards Enforcement (DLSE) or through civil court action. Employees can file a claim with the DLSE alleging violations of the wage order that governs their employment. The DLSE investigates the claim, and a hearing may be conducted to determine if a violation occurred.
There are cases where the dispute is more complex or involves larger sums of money. Because of this, the matter may proceed to a civil court where both parties can present their case with the help of a California employment lawyer, and a judge or jury will render a decision.
Are There Any Defenses to California Wage Orders’ Violations?
Employers accused of violating California wage orders do have potential defenses. These might include arguing that the employee is properly classified as exempt, the individual is not an employee but an independent contractor, or that the employer has complied with the applicable wage order requirements.
Thorough and accurate records will be the primary evidence in defending against claims of wage order violations.
Do I Need an Employment Lawyer?
If you believe your rights under California wage orders have been violated, or if you are an employer facing accusations of such violations, consulting with a California employment lawyer can be helpful. An attorney can help employees understand their rights and options, while employers can receive guidance on compliance and defense strategies.
Connect with a knowledgeable California employment lawyer through LegalMatch today to protect your rights and interests.
