California Minority Counsel Program Presents

PANELISTS:Frank Capetillo, Sr. Special Investigator, DIR, DLSE

Amber M. Grayhorse, Senior Associate, Nossaman LLP

Tim Lykowski, Sr. VP of Employment Litigation, Fox Group Legal Dept.

MODERATED BY:Aundrea L. Smith, Associate, Sanchez & Amador LLP

Hosted & Sponsored by

The DLSE’s Growing ArsenalWhat Every Employer Needs to Know About the Wage Theft Protection Act

and the DLSE’s Criminal Investigation Unit

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What Will We Cover?

1. Wage Theft Protection Act’s Written Wage & Hour Notice to New Employees

2. DLSE’s Criminal Investigation Unit

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1. At the time of hiring, an employer shall provide each employee a written notice, in the language the employer normally uses to communicate employment-related information to the employee, basic employment information

2. Labor Commissioner must have a template

3. Employer shall notify employees in writing of any changes to the information within 7 calendar days of the changes

Wage & Hour Notice: Labor Code § 2810.5 (1/1/12)

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1. All rates & basis (hourly, shift, daily, weekly, salary, commission, etc.) of pay, incl. O/T rates

2. Minimum wage allowances, if any, including meal and lodging allowances

3. Regular payday

4. Employer’s Legal Name, incl. “dba” names

Wage Notice: What Must I Include?

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5. Physical and mailing address of employer’s main office/principal place of business

6. Employer’s phone number

7. Contact info of employer’s W/C insurance carrier

8. Any other info Labor Commissioner deems material or necessary

Wage Notice: What Must I Include?

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• Information re staffing agency• Information re written agreements to

providing the rate• No longer have to try to respond to

whether Employment Agreement is Oral or Written

What does the DLSE Require as “Material & Necessary”?

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All employers who “engage another . . . to do something for the benefit of the employer or a third person” in California.• Best Practices:

• Any employer that has employees in California should provide notice to California employees

• Any employer in California should provide notice to all employees

• Including:• Private employers• Private schools• Non-profit corporations (CMCP)• Private sub-contractors

Who Must Provide Wage Notices?

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Exceptions: • Public employees• Exempt employees• Most employees covered by collective

bargaining agreements

Who Must Provide Wage Notices?

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At the time of hiring• Hiring date vs. start date• No later than the start date

Best Practice: Give the Notice to existing employees if you haven’t already?

When Must the Notice be Given?

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Employers must notify employees in writing of any changes to the info in the Notice within 7 calendar days of the change

Unless: • All changes are reflected in timely wage

statement• Employer provides notice of changes in

another writing required by law w/in 7 days

Do I have to Update the Notice?

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Notice must be given in language normally used to communicate employment related information

Labor Commissioner has templates in six languages:

What if my Employees Speak Different Languages?

1. English

2. Vietnamese

3. Chinese

4. Korean

5. Tagalog

6. Spanish

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What Wage Notice Records Must I Maintain?

• Record of Notices provided• Can be electronic

• Best Practices: • Acknowledgement of Receipt

• But cannot require employees to sign Acknowledgement

• Maintain Acknowledgement for 4 years after termination

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• DLSE templates and FAQs: http://www.dir.ca.gov/dlse/FAQs-NoticeToEmployee.html

• Not necessary to use template, but Notice must contain all info in DLSE’s template

• If you prepare your own Notice form, it must be a free standing form

Wage Notice:What Else do I Need to Know?

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• Established Feb. 27, 2012

• Designed to investigate employers who perpetrate wage theft and other criminal activities against workers

• Peace officers make investigations & arrests for L.C. violations

Criminal Investigation Unit (CIU)

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• Arrest employers for violating Penal Codes and Labor Codes.

• Cite employers into criminal court for violating Labor codes and Penal Codes.

• File criminal charges with the district attorney’s office and other prosecutors (including city attorneys).

• Serve subpoenas. • Obtain and serve inspection warrants.• Obtain and serve search warrants.• Obtain arrest warrants for employers.• Conduct surveillance.

What is CIU Doing?

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• Flagrant mistreatment of workers• Not innocent violators

• W/C violations• Theft of labor• Payment of wages with bounced

checks• Unlicensed farm labor contractors/

Garment mfr’s• Public works projects kickbacks• Minor worker violations

What is CIU’s Focus?

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• Increased enforcement efforts• August 7, 2012: Joint DLSE/DOL

Inspection of Garment Manufacturing Businesses, Downtown Los Angeles

• L.C. Julie Su is 1st L.C. recognized as Top Labor & E/t Attorney in California

• Increased efforts to enforce citations• Most common violations:

1. Failure to carry workers’ compensation

2. Failure to pay overtime compensation

What Else do I Need to Know about the DLSE?

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For any questions, please contact:

Amber M. Grayhorseagrayhorse@nossman.comwww.nossaman.com 213.612.7864

Aundrea L. Smithsmith@sanchez-amador.comwww.sanchez-amador.com 213.955.7206

Thank you!