The potential liability from pay stub problems can be staggering.
California employers must provide employees with an accurate, itemized wage statement, either as a paystub or a separate written document. If those pay stubs don’t meet California’s strict legal requirements, companies may find themselves facing a lawsuit.
In fact, last week a California federal judge preliminarily signed off on a proposed $600,000 settlement (Law360 subscription required) between Amazon.com and a class of warehouse employees at one of Amazon’s subsidiaries, Golden State FC, over failure to provide accurate, itemized wage statements.
Initially, other allegations were included in the lawsuit, including alleged meal and rest break violations. But, after discovery during the litigation, the parties agreed to drop those claims; only the alleged pay-stub violations remained.
Approximately 28,000 employees are part of the preliminary class settlement.
Gail Cecchettini Whaley, CalChamber Employment Law Counsel/Content
CalChamber’s new What’s In Your Wage Statement white paper identifies nine categories of information that must be included on wage statements and offers practical suggestions for employers on minimizing their potential liability. Non-members can download the white paper here. CalChamber members can download the white paper from HRCalifornia (log in required).
CalChamber members can also use the new SmartStub, an interactive tool to help determine what information must be on your wage statements.
The post Pay Stub Problems Led to Lawsuit and Settlement appeared first on HRWatchdog by Gail Cecchettini Whaley.