Wage and Hour Law FAQs

1. What is the difference between an independent contractor and an employee?
   
   Generally, independent contractors render service for a specified result, set their own hours, are not required to follow management enforced rules, are paid by the job not by the hour and do not have a continuing relationship with management. Employers oftentimes improperly classify their employees as independent contractors in order to avoid complying with wage and hour law requirements, including payroll taxes, minimum wage and overtime, providing meal periods and rest breaks and reimbursing workers for business expenses incurred while performing their jobs.
2. What is the minimum wage?
   
   As of January 1, 2008, the minimum wage in California is $8.00 per hour. The minimum wage is an obligation of the employer and cannot be waived by any agreement. Some employees are exempt from the minimum wage law, including outside salespersons, individuals who are the parent, spouse or child of the employer, and apprentices regularly indentured under the State Division of Apprenticeship Standards.
3. Are employers required to provide employees with itemized wage statements?
   
   Employers must provide itemized wage statements for employees showing the following: employer's name and address, employee's name and social security number, pay period dates, gross/net wages, deductions, total hours worked, applicable hourly rates and hours worked at each rate.
4. When is an employer required to pay an employee his wages?
   
   In California, with some exceptions, wages must be paid at least twice during each calendar month on the days designated in advance as regular paydays. The employer must establish a regular payday and is required to post a notice that shows the day, time and location of payment.
5. What can an employer lawfully deduct from an employee's wages?
   
   Lawful deductions include deductions that are required of the employer by federal or state law, deductions expressly authorized in writing by the employee to cover insurance premiums and deductions authorized by a collective bargaining or wage agreement.
6. What are illegal deductions from an employee's wages?
   
   Some common payroll deductions often made by employers that are unlawful include gratuities left for an employee, uniforms required by the employer, business expenses and medical or physical examinations required of a prospective employee.
7. When is an employer required to give an employee his final wages?
   
   An employee who is discharged must be paid all of his wages, including accrued vacation, immediately at the time of termination. An employee who quits and gives the employer at least 72 hours prior notice and quits on the day given in the notice, must be paid all of his wages, including accrued vacation, at the time of quitting. An employee who quits without giving 72 hours prior notice, must be paid all of his wages, including accrued vacation, within 72 hours of quitting.
8. Are employers required to provide vacation time?
   
   California law does not require an employer to provide paid or unpaid vacation time. If an employer does have an established policy to provide vacation time, certain restrictions are placed on the employer regarding the policy.
9. Are "use it or lose it" vacation policies legal?
   
   A policy that provides for the forfeiture of vacation pay that is not used by a specified date ("use it or lose it") is an illegal policy. An employer may place a reasonable cap on vacation benefits that prevents an employee from earning vacation over a certain amount hours.
10. When are employers required to give employees a meal period?
    
    Under California law, employees must be provided with at least a thirty-minute meal period when the work period is more than five hours. If the work period is no more than six hours, the meal periods may be waived by mutual consent of both the employer and employee. A second meal period of at least 30-minutes must be provided when the employee works more than 10 hours per day. If the work period is no more than 12 hours, the second meal period may be waived by mutual consent of both the employer and employee.
11. What is an on-duty meal break?
    
    Unless the employee is relieved of all duty during the entire 30-minute meal period and is free to leave the employer's premises, the meal period is considered "on duty" and counted as hours worked and paid at the employee's regular rate of pay.
12. What are the requirements regarding rest periods?
    
    Under California law, employees covered by provisions of the IWC Orders must be provided with a 10-minute paid rest period for every four hours worked. A rest period is not required for employees who work a total of less than 3.5 hours daily.
13. Are employers supposed to pay penalties if employees are not allowed meal or rest periods?
    
    If an employer fails to provide an employee with a meal period, the employer must pay one additional hour of pay at the employee's regular rate of pay for each workday that the meal period is not provided.
    
    If an employer fails to provide an employee with a rest period, the employer shall pay the employee one additional hour of pay at the employee's regular rate of pay for each workday that the rest period is not provided.
14. What is overtime pay?
    
    Overtime is 1.5 times the employee's regular rate of pay for all hours worked in excess of eight hours up to and including 12 hours in any workday and for the first eight hours of work on the seventh consecutive day in a workweek. Overtime wages must be paid no later than the payday for the next regular payroll period after the overtime wages were earned. California law requires that employers pay overtime, whether authorized or not.
15. Where can I find more general information regarding employment issues?
    
    For more information, visit the State of California Division of Labor Standards Enforcement Web site at http://www.dir.ca.gov/dlse/.

GraceHollis LLP provides the information in the Employment Wage and Hour Law FAQs for informational purposes only. The information presented is not a substitute for legal advice from qualified counsel. You should not act or rely on information in this site without seeking the advice of an attorney. Your use of this site does not create any attorney-client relationship between you and GraceHollis LLP.

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