[Post updated on December 6, 2016]
Understanding California labor laws are essential for Human Resources departments and Payroll
departments since they are the two main players when it comes to ensuring that employees are being paid correctly and on-time.
Therefore both entities need to understand the impact that an employee’s working schedule may have on his or her pay.
In California the concept of “reporting time pay” was created to ensure employers aren’t taking advantage of workers by over scheduling a shift then sending them home if not needed. The Industrial Welfare Commission Orders require employers to pay their nonexempt employees for regularly scheduled, but unworked time because of the lack of proper notification or inadequate scheduling by the employer.
Reporting Time Scheduling
The California Code of Regulations describes Reporting Time Pay as the time an employee must be paid based on the employee’s scheduled shift. This part of California labor law serves to address employers who schedule employees for full shifts and then send them home because business doesn’t warrant them working the full shift.
In essence, if an employee is sent home by the employer before the end of at least half of their usual shift, they are entitled to be paid a minimum of half their shift.
Truth about Minimum Work Hours per Day
Because California labor law mentions a two hour minimum and a four hour maximum, many have confused that to mean the law requires employees be scheduled a minimum number of work hours per day.
The California Court of Appeals clarified this in the case of Aleman v. AirTouch Cellular, ruled on December 21, 2011. Although this case was brought regarding employee meetings, the ruling makes clear that the amount due to the employee is based on the actual length of their scheduled shift, and not on an arbitrary four hour, or eight hour shift.
And, it clarifies that California labor law does not require a minimum hour work day. It simply requires employers to pay at least half of the employee’s scheduled shift if the full shift isn’t worked.
The Impact of California's New Minimum Wage Laws on Work Hours
At the other end of the scheduling spectrum is mandated minimum wage and overtime pay.
Traditionally, agricultural workers in California have been poorly served on both of these fronts. But the recent passage of new minimum wage laws and mandated overtime may have a negative impact that was unintended.
Employers don’t have to provide a minimum shift for their employees, but they do need to be careful on how they schedule them. By understanding California labor laws and considering the impact when scheduling, employers can ensure that they stay compliant, and therefore minimize the cost related to reporting time pay due.
It doesn’t matter what your company does, payroll plays a key role in the success of any company. Partnering with Accuchex allows you to focus on your business yet still maintain peace of mind knowing your payroll is handled accurately.
The complete online payroll solutions provided by Accuchex covers everything you need to make sure your payroll is taken care of and that is why we are a trusted California payroll solutions provider. We offer our services in California Bay area – North bay, South Bay and East bay, including San Francisco. Call Accuchex Payroll Management Services at 877-422-2824.