California Posts Template on New Hire Notice For Nonexempt Private Employees - Effective 1/1/12

In October 2011, California Governor Jerry Brown signed The Wage Theft Protection Act of 2011 (AB 469), which included the addition of §2810.5 to the California Labor Code. This law took effect January 1, 2012, and includes a requirement that private employers in California provide a written notice with detailed wage information as part of the new hire materials given to nonexempt employees.

Insurers may wish to alert their policyholders as the name, address and phone number of the employer’s workers’ compensation insurance carrier must be included, and private employers should now include the notice in nonexempt employees’ new hire packets. Last week, the Labor Commissioner’s office posted a template showing the required information for the new notice along with an FAQs page on the Commissioner’s website: http://www.dir.ca.gov/dlse/Governor_signs_Wage_Theft_Protection_Act_of_2011.html.

Specifically, the notice must include:

  • The rate or rates of pay and basis thereof, whether paid by the hour, shift, day, week, salary, piece, commission, or otherwise, including any rates for overtime, as applicable.
  • Allowances, if any, claimed as part of the minimum wage, including meal or lodging allowances.
  • The regular payday designated by the employer.
  • The employer's name, including any "doing business as" names used by the employer.
  • The physical address of the employer's main office or principal place of business, and a mailing address, if different.
  • The employer's phone number.
  • The name, address, and phone number of the employer's workers' comp insurance carrier.
  • Any other information the Labor Commissioner deems material and necessary.

The new law also specifies that the employer must notify all nonexempt employees -- by written amendment, a new written notice, or a revised paycheck stub -- within 7 calendar days if any of the information changes. Therefore, any change of workers’ compensation insurer after January 1 will require a new notice. Please note: AB 469 does not affect the existing workers’ compensation new hire pamphlets required under LC §3551 (i.e., CWCI’s “Facts About Workers’ Compensation”) or the workers’ comp posting notices required under LC §3550 (i.e., CWCI’s “If A Work Injury Occurs”), neither of which has been revised for 2012. The new notice is also in addition to the wage and hour information that the state already requires employers to keep posted in a location where it can be viewed by employees, and LC §2810.5 does not change any of those posting requirements. Also note that LC §2810.5 does not apply to public employees, employees who are exempt from overtime laws, or employees covered by a valid collective bargaining agreement if their regular rate of pay exceeds California's minimum wage by at least 30 percent and if their overtime compensation is paid at the proper premium wage rate.