Monday, October 17, 2011

New State Mandate for Private Employers Hiring New Employees

Beginning January 1, 2012, there will be a new requirement private sector employers must comply with when hiring new employees.  Employers will be required by a new State law to provide the new hires with a list of information in a format to be determined by the Labor Commissioner.

New Labor Code Section 2810.5 requires "at the time of hiring" a written notice "in the language the employer normally uses to communicate employment-related information" to non-exempt employees containing all of the following:
  1. The rate or rates of pay and whether paid by the hour, shift, day, week, salary, piece, or commission, including overtime rates;
  2. Allowances, if any, to be considered part of the employee's minimum wage, such as meal or lodging allowances;
  3. The regular payday designated by the employer;
  4. The name of the employer, including any "doing business as" (dba) names used by the employer;
  5. The physical address of the employer's main office or principal place of business, and a mailing address, if different;
  6. The telephone number of the employer;
  7. The name, address, and telephone number of the employer's workers' compensation insurance carrier; and,
  8. Any other information deemed "material and necessary" by the Labor Commissioner.
Not to worry, though.  The Labor Commissioner will be providing a "template" for employers to use to convey this information.  Employers should look for information from the Labor Commissioner to help comply with this requirement.  Conceivably, this requirement could be satisfied with some modifications to an employer's existing "new hire" or offer letter.  Employers not using offer letters will want to follow the Labor Commissioner's "template" to assure compliance.

This written notice is not required for public sector employees, overtime exempt employees, and employees covered by a union contract (provided the regular hourly rate is at least 30% more than the State's minimum wage.