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The California Notice to Employee (Labor Code Section 2810.5) might seem like another boring piece of paperwork in the onboarding stack, but it's a critical tool for ensuring compliance and employee transparency.
What is the Notice to Employee?
California requires that employers provide the Notice to Employee to all nonexempt employees at the time of hire.
It details essential information such as:
Pay Rate: Specifies hourly, salary, or other rate.
Payday: Designates when wages are paid.
Overtime Rate: Specifies the rate for exceeding regular working hours.
Workers Compensation: Designates the company's workers comp insurance provider.
Paid Sick Leave: Identifies the company's method of providing paid sick leave.
Why is the Notice to Employee important?
The Notice to Employee became a legal requirement for California employers in 2012 as part of the Wage Theft Prevention Act. This requirement is designed to increase transparency in how pay calculations are communicated to employees, and reduce the risk of wage theft claims. The Notice also serves as a documented record of employee pay details, facilitating accurate payroll processing and audits.
The bottom line:
Ensure all non-exempt employees receive a written Notice to Employee at the time of hire and within seven days of any changes to the information (unless the only change is to the wage rate and that change is reflected on the employee's pay stub).
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