Analyses of Section 554 - Cases of emergency, protection of life or property, or movement of trains; cases of hardship, Cal. Lab. Code § 554 (2024)

New California Laws Impose Greater Burdens and Higher Risks of Liability for Employers

Paul Hastings LLPStephen L. BerryNovember 18, 2017

California Labor Code section 226(a) requires nine categories of information to be shown on a wage statement, including the total hours worked in the pay period by the employee. However, section 226(a) excuses employers from showing total hours worked on pay stubs of salary-paid exempt employees.AB 2535 amends section 226(a), and extends the total hours worked exception to all employees who are exempt from the payment of minimum wage and overtime under specified statutes or any applicable wage order of the Industrial Welfare Commission, such as outside sales employees, certain commission-paid employees, and computer professionals who are paid by the hour at the statutorily mandated hourly pay rate.AB 1066 (Overtime Pay, Meal Periods, and Days Off for Agricultural Workers)Recognizing the importance of the agriculture industry to California’s economy and the reality of long work days during the harvest season, California Labor Code section 554 currently provides an exemption from California’s daily and weekly overtime, meal period, and mandatory day off in seven rules for agricultural workers. This exemption has long been a target of the United Farm Workers union, and AB 1066 is the product of those efforts.

Analyses of Section 554 - Cases of emergency, protection of life or property, or movement of trains; cases of hardship, Cal. Lab. Code § 554 (2024)

FAQs

What is section 554 of the California Labor Code? ›

Cal. Lab. Code § 554(a). [2]“Accumulation of days of rest when the nature of the employment reasonably requires that the employee work seven or more consecutive days,” so long as in each calendar month the employee is entitled to take the equivalent of one day's rest in seven.

What is the penalty for not paying final wages in California? ›

In California, employers are required to pay wages immediately if you get terminated or resign with 72 hours notice. Otherwise, employers are liable to pay a waiting time penalty equal to your daily rate of pay for each day late, up to 30 days.

How long does an employer have to fix a payroll error in California? ›

In California, employers have up to 30 days to correct payroll errors. If they fail to rectify underpayment or issue late paychecks in that time, employees are entitled to a full day's wages at their regular rate for each day the mistake persists.

What is the 72 hour rule in California? ›

In California, you must receive your final paycheck immediately if you get terminated or resign with at least 72 hours' notice. If you quit without notice, then your employer has 72 hours to give you your final paycheck.

What happens if you work 7 days in a row in California? ›

Under California law, non-exempt employees who work seven consecutive days in a workweek are entitled to overtime pay of one and one-half times their regular rate of pay for the first eight hours worked on the seventh day.

How many hours straight can you legally work in California? ›

There is generally no cap on the number of hours an employee can legally work in a day. But under California labor laws, non-exempt employees are entitled to overtime pay if they work: More than eight (8) hours in a single workday; More than forty (40) hours in a single workweek; or.

Do I have to pay back a payroll error? ›

If you underpay an employee, it is integral to begin the process of repayment as soon as possible. An underpaid employee has every right to demand his or her money back – and as soon as the next paycheck. Late payments accrue the longer you take to pay an employee back.

What consequences might there be for payroll errors? ›

These types of payroll mistakes can lead to severe fines. For instance, failing to properly pay for overtime work has a penalty of up to $1,000 for each violation. The FLSA also gives an employee the right to privately file a lawsuit to demand back pay and additional compensation for damages and legal expenses.

Can I sue my employer for not paying me correctly California? ›

Workers in California have the right to file a wage claim when their employers do not pay them the wages or benefits they are owed. A wage claim starts the process to collect on those unpaid wages or benefits.

What is the 5th hour rule in California? ›

Meal Break Obligations In California. You cannot employ someone for a work period of more than five hours without providing an unpaid, off-duty meal period of at least 30 minutes. The first meal period must be provided no later than the end of the employee's fifth hour of work.

What is the 3 year rule in California? ›

The Three-year rule is part of the IRS tax code that deals with assets, transfers, and estates. The rule places certain assets in the total for the decedents' gross estate when those assets are transferred within three years of the person's death.

What is the 3 day rule in California? ›

If the tenant fails to pay the rent owed or vacate the premises within the three-day period specified in the notice, the landlord can proceed with filing an unlawful detainer lawsuit, also known as an eviction lawsuit. This legal action aims to regain possession of the rental property through the court system.

What is considered an adverse employment action in California? ›

An adverse action is a formal administrative action taken to correct an employee's on-the-job behavior or performance. It imposes one or more penalties: official reprimand, salary reduction, suspension without pay, demotion or dismissal.

What is an excluded employee in California? ›

​Excluded employees

Excluded employees are employees who do not have collective bargaining rights under the Ralph C. Dills Act (Dills Act). In general, we designate these employees managerial, confidential, and supervisory.

What is the California employee reimbursem*nt law? ›

Under California Labor Code Section 2802, an employee is entitled to be reimbursed by his or her employer "for all necessary expenditures or losses incurred by the employee in direct consequence of the discharge of his or her duties, or of his or her obedience to the directions of the employer." Thus, California ...

What is the employer burden in California? ›

“Employer burden” is the required cost associated with hiring employees. These costs are included in the Self- Determination Program (SDP) participant's spending plan and calculated as a percentage of wages paid to the SDP participant's employees or actual cost of the employer burden item.

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