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On October 10, 2019, Governor Gavin Newsom signed AB 673 into law, expanding an employee’s right to collect penalties for an employer’s failure to timely pay wages. Prior to the enactment of AB 673, Labor Code section 210 provided a penalty that was directly recoverable by the Labor Commissioner or by an employee authorized to bring a claim under California’s Private Attorneys’ General Act (PAGA). A recovery by the Labor Commissioner resulted in the penalties…
While best practices would be to use the employer’s registered name, a recent Court of Appeal opinion has upheld an employer’s use of its fictitious business name in its wage statements. California Labor Code section 226 lists information that must be included in every employee’s wage statement. Pursuant to subsection (a)(8), one piece of information required is “the name and address of the legal entity that is the employer.” Employers can face substantial penalties if…