Amendments to Fair Employment and Wage Payment Laws Provide Common Sense Guidance for Employers

From Venulex.com

Amendments to the California Fair Employment and Housing Act have made certain requirements regarding the mandatory harassment prevention training and the payment of overtime wages more "employer friendly." On September 29, 2006, Governor Schwarzenegger signed into law Assembly Bill 2095, which clarifies California's existing harassment training requirements so they apply only to those supervisors in California. The law also eliminates confusion regarding the timing for payment of overtime wages by allowing both the overtime pay and a corrected itemization of overtime pay to appear on the pay stub issued for the next regular pay period. clarifying

Harassment Prevention Training

Under existing law, companies with 50 or more employees must provide two hours of sexual harassment training to supervisors. However, it was unclear whether employees and supervisors outside of California counted toward the 50-employee threshold and if supervisors outside of California had to be trained. The state agency charged with enforcing California's law had issued proposed regulations (since withdrawn) that would have required out-of-state supervisors responsible for managing California employees to be trained.

Now, for purposes of determining whether an employer meets the 50 employee threshold, all employees or individuals "providing services pursuant to a contract" will be counted wherever they are located. However, the mandatory training will extend only to supervisors located in California. The training must be provided every two years to existing supervisors and to all new supervisors within six months of their assumption of supervisory duties.

Although California employers are not required to train supervisors located outside the state, there are many reasons to do so. Training is one of the most effective ways to prevent harassment claims in the first instance. Training gives employers the opportunity to educate its supervisors regarding company policies concerning the prevention of harassment, to explain how to handle harassment complaints, and to explain the consequences of engaging in such conduct. Training demonstrates a company's commitment to preventing unlawful conduct in the workplace. In certain instances, training may limit an employer's liability or damages for harassment claims.

Wage Payment Law

Existing California law provides that all earned wages are due and payable twice per month. Regular wages must be paid within seven days of the end of the payroll period. However, overtime wages must be paid no later than the payday for the next payroll period. Existing law also requires employers to furnish employees with semi-monthly wage statements showing the total hours worked. These requirements have caused confusion because employees would receive pay stubs showing overtime hours worked, but not paid, in their first pay period, and pay stubs showing overtime hours paid for the prior pay period. The new law now permits employers to show the overtime hours worked in the current pay period as itemized corrections in the second pay period so that employees will see both the payment and the hours worked on one pay stub. The pay stub must identify the dates of the pay period to which they refer.

These amendments should eliminate confusion and potential conflicts about the payment of overtime wages. Employers must take care to ensure compliance with the new wage payment reporting requirements. Failure to do so may result in penalties and potentially costly bounty hunter litigation.

From Venulex.com

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Amendments to Fair Employment and Wage Payment Laws Provide Common Sense Guidance for Employers

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