If you have a nondiscretionary bonus plan that is awarded to nonexempt employees at intervals greater than each week (for example, on a quarterly, semiannual, or annual basis), you are required to retroactively calculate the bonus into the employee's "regular rate" of pay. You’re...

Salary Increase Budget Surveys Most employers are working with 3 percent for merit, as shown by this chart taken from a recent WorldatWork survey, says Pasteris. (Pasteris, president of TLMP Consulting Group, offered her suggestions during a recent webinar sponsored by HRHero/BLR, CER’s parent...

What happens if an employer loses their payroll records or other basic employee records in California? Basic records include things like payroll records, employee benefit plans, trusts, collective bargaining agreements, incentive plans, employee contracts, all employee notices, etc. Many laws require...

Payroll records are records that show the compensation information for all your employees. The California Employment Development Department (EDD) requires that records must provide a true and accurate account of all workers employed, no longer employed, on a leave of absence, and independent contractors...

OFCCP remains focused on contractor compliance with affirmative action regulations for vets and employees with disabilities, says attorney Susan Fahey Desmond. And programmatic outreach is not enough any more; OFCCP wants to see personal relationships with outreach resources and a system for monitoring...

OFCCP’s audits are getting tougher, says attorney Susan Fahey Desmond, including more in-depth evaluations, more focus on proactive steps to reach goals, and detailed compensation audits in virtually every recent audit. Remember, says Desmond, who is a partner at Jackson Lewis, LLP, the Office...

Yesterday’s CED featured common—and egregious—wage/hour missteps; today, four more failures, plus an introduction to the simple-to-use, popular guide that answers all your California wage/hour questions. [ Go here for Failures 1 to 3] 4. Providing inaccurate or falsified payroll records...

DOL recently settled a case against a major construction company whose list of legal failures provides a good checklist of infractions every company should strive to avoid. (You’ll also avoid the almost $1 million fine the company will pay to settle the case.) DOL’s action against Lettire...

Generally, if you dock the pay of exempt workers, you kill their exemption because you are treating them like nonexempts. You could easily owe a few years' worth of overtime. But the laws do allow docking in certain circumstances. Here are those exceptions, along with a resource to make sure wage...

Because class action status can change a small comp issue into a massive lawsuit—one very attractive to contingency lawyers—wage/hour lapses could be your most dangerous mistakes. Here are 10 of the most common management moves that create wage/hour disasters. (Pay attention because you don't...

"Employers regularly fail to include everything they’re supposed to include in final pay." Barrie Gross pointed out in a recent CER webinar. But it’s not always obvious what must be included in the final paycheck that is due upon termination. What must be paid immediately? What...

Exempt vs. nonexempt: California rules are tricky, to say the least. Many employers mistakenly believe that simply paying a salary (rather than an hourly wage) or bestowing an impressive job title is enough to make an employee exempt from the overtime rules. In fact, only one thing really matters—the...

Calculating overtime in California is extra complex because state and federal rules differ. Additionally, base rate calculations get complicated with commissions, bonuses, and other payments. What pay can be excluded when calculating the regular rate? How can employers be sure to be legally compliant...

What is the waiting-time penalty? Under California Labor Code Section 203, employers will be assessed a penalty for any willful failure of on-time payment of any part of final wages due to a departing employee. Remember that wages earned are due and payable immediately upon discharge for involuntary...

Reference to market is critical for every compensation program, says consultant Michael Strand. Without market pricing data, you’re likely to underpay (and lose your best workers) or overpay (and lose your profitability). Strand, owner of consultancy HR Dynamics Inc., offered his seven steps to...

Providing rest breaks in California is just as important as providing meal breaks, and failing to do so could prompt similar penalties if discovered. In fact, meal and rest period requirements have played a huge role in wage and hour litigation for more than 5 years now. Rules for Providing Rest Breaks...

Meal breaks in California have very specific rules that must be followed for employers to be legally compliant. Marc Jacuzzi explained the requirements in detail in a recent CER webinar. As explained by Jacuzzi, California Labor Code Section 512 states that "an employer may not employ an employee...

What effect does your employees' use of PDAs have on wage and hour issues? Are you "suffering and permitting" work when they respond to calls after hours? Is any time ever “ de minimis ”? Attorney Laura Innes tackles these questions and makes some recommendations. Compensable...

It's a sobering realization, says attorney Kara Shea, that DOL statistics show 73 percent of its investigations result in findings of violations, but you can push the odds in your favor. Shea, who is a member of the Labor and Employment Group at Butler Snow, PLLC, made her remarks at a recent BLR...

Inappropriate deductions from final pay can get California employers in trouble. Whether an employee quits unexpectedly or departs after a well-planned termination process, the clock is ticking on the delivery of the person’s final pay, which forces employers to act quickly and can unfortunately...