As we’ve discussed, while AB 1506 scales back certain PAGA claims, it doesn’t change what information must be included on every employee’s regular wage statement. Labor Code § 226 requires that each itemized wage statement include:
- Gross wages earned;
Copyright: andrewgenn / 123RF Stock Photo - Total hours worked by a nonexempt, hourly employee;
- All deductions;
- Net wages earned;
- The inclusive dates for the period the employee is paid;
- The name of the employee and the last four digits of his/her social security number or an employee identification number;
- The employer’s legal name and address;
- All applicable hourly rates in effect during the pay period and the corresponding number of hours worked at each hourly rate; and
- For employees paid on a piece-rate basis, the number of piece rate units earned, regardless of time worked.
This information must be presented in a way that employees can “promptly and easily” determine from the wage statement alone.
The Take Away: Employers must provide California employees with itemized wage statements clearly detailing how their pay is calculated. Employers who fail to include the required information are setting themselves up for potential PAGA claims. Anytime one of your employees talks to a lawyer about a claim against your company, the lawyer will ask to see a pay stub. These claims are far easier to prevent than they are to resolve.