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Note: This article is about the notice of pay rate requirement in the Wage Theft Prevention Act (WTPA). The WTPA includes other provisions as well, such as payroll records and pay rate requirements, which employers should also review.
What is the Wage Theft Prevention Act?
California’s Wage Theft Prevention Act of 2011 (WTPA) went into effect on January 1, 2012, and requires that all employers provide each non-exempt employee with a written notice containing specified information regarding their pay and other benefits. The notice must be in the language the employer normally uses to communicate employment-related information to the employee.
When do employers need to provide this notice to employees?
At the time of hire and within 7 days of a change if the change is not listed on the employee’s pay stub for the following pay period.
What are the penalties for not complying?
Civil penalties of one hundred dollars ($100) for each aggrieved employee per pay period for the initial violation and two hundred dollars ($200) for each aggrieved employee per pay period for each subsequent violation may be incurred.
What are the steps to get this notice signed and filed in Justworks?
Each Justworks customer with employees in California can find the “California Wage Notice” template in their Justworks Document Center (under HR > Documents > Compliance documents).
Once you’ve located the notice template, you’ll need to:
- Fill out the “Employee,” “Employer,” “Wage Information,” and “Paid Sick Leave” sections of the notice for each of your employees based in California
- Input your company’s workers’ comp policy number (which is listed on the workers’ comp certificate of insurance (COI) in your company’s Document Center; if you don’t see the COI in your company’s Document Center, please contact Justworks’ Support)
- Upload a copy of the completed notice to each employee’s Document Center
- Notify the employee that this has been added to their Document Center and is ready for their review or utilize Justworks' E-Signature feature
Please note that Justworks customers should use the template in their Document Center (which has Justworks’ information prepopulated in the PEO section), not the blank template found on the California Department of Industrial Relations (DIR) website.
Where can I find more information?
CA DIR - Wage Theft Prevention Act
CA DIR - Wage Theft Protection Act of 2011 - Notice to Employees
Disclaimer
This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, legal or tax advice. If you have any legal or tax questions regarding this content or related issues, then you should consult with your professional legal or tax advisor.