The 2002 Update Of The DLSE Enforcement Policies and ...

1 The 2002 Update Of The DLSE Enforcement Policies and interpretations manual (Revised) The division of labor standards Enforcement (DLSE) Enforcement Policies and interpretations manual summarizes the Policies and interpretations which DLSE has followed and continues to follow in discharging its duty to administer and enforce the labor statutes and regulations of the State of California. Lilia Garcia-Brower, State labor Commissioner AUGUST, 2019 division OF labor standards Enforcement Policies and interpretations manual DECEMBER, 2019 ii TABLE OF CONTENTS.

2 1-1 2-1 .. Employer , Defined 2-1 Wages , Defined 2-1 Piece Rate Or Piece Work 2-2 Commission 2-2 Bonus Defined 2-3 Status Of Wages 2-3 Extension Of Wage Definitions To Public Employees 2-4 PAYABLE ON TERMINATION 3-1 .. labor Code 201 Discharge 3-1 Layoff, When Discharge 3-1 Sale Of Business Constitutes Discharge 3-1 Motion Picture Workers Exception 3-2 Print Shoot Employees Exception 3-2 Oil Well Drilling Workers Exception 3-2 Professional Baseball and Live Theatrical Or Concert Events 3-2 labor Code 202 Quit 3-2 For A Definite Period , Defined 3-2 Payment By Mail 3-2 Extension of Coverage of Wage Statutes to Some Public Employees 3-3 Temporary Services Employees 3-3 FOR FAILURE TO PAY WAGES ON TERMINATION 4-1 Willfully.

3 Defined 4-1 Good Faith Dispute , Defined 4-2 Payment By Mail 4-2 Any Wages 4-2 Action , Defined 4-3 Payment Of Wages Not Calculable Until After Termination 4-3 labor Code Civil Penalty For Payment With Non-Sufficient Funds Instrument 4-3 OF REGULARLY SCHEDULED WAGES 5-1 Payment Of Overtime Wages, Time For 5-1 Payment Of Bonus, Commission, Or Other Extraordinary Wages 5-2 Payment At Central Location, Special Rules 5-2 Commission Wages 5-2 Executive, Administrative Or Professional Employees, Special Rules 5-3 Commissioned Vehicle Salespersons 5-4 Agricultural And Household Occupations Receiving Room And Board 5-5 Farm labor Contractors Employees 5-5 Most Agricultural Employees 5-5 TIME OFF, Caveat Regarding labor Code vs.

4 5136-1 PAYMENT SPECIAL CONDITIONS 7-1 Conceded Wages Must Be Paid Without Condition 7-1 Release Of Wage Claim Prohibited 7-1 .. division OF labor standards Enforcement Policies and interpretations manual .. DECEMBER, 2019iii TABLE OF CONTENTS (Cont d) PAYMENT SPECIAL CONDITIONS (Con t d.)Settlement By DLSE 7-2 Payday Notice Required 7-2 Place Of Payment 7-2 Payment In Strike Situation 7-3 Payment Of Wages Covered By Collective Bargaining 7-3 Wage Payment Where Holiday Occurs 7-3 Private Agreement May Not Contravene labor Code Pay Provisions 7-4 TO EMPLOYEES OR THE STATE 8-1 Untimely Payment Of Wages During Course Of Employment 8-1 OF PAYMENT OF WAGES 9-1 Wages Must Be Paid In Cash Or Negotiable Instrument Payable In Cash 9-1 Requirements Regarding Negotiable Instruments 9-1 Payment By Scrip Specifically Prohibited

5 9-2 Payment To ERISA Trust Not Subject To Penalty 9-2 Limited Exceptions To Payment In Cash Or Negotiable Instrument 9-3 Payment Of Wages Due Deceased Employees 9-4 TO PAY WAGES, WITHHOLDING WAGES 10-1 Refusal To Pay Wages 10-1 Employer Prohibited From Recovering Back Wages Paid To Employee 10-2 Criminal Sanctions For Secretly Paying Less Than Required By Statute Or Contract FROM WAGES 11-1 Legal Deductions 11-2 Recovery Of Wages Paid, Illegal 11-2 Self-Help By Employer To Recover Debt From Wages Prohibited 11-3 Losses Which Are Result Of Simple Negligence Or Cost Of Doing Business 11-3 Not Recoverable By Deduction From Wages 11-3 Losses Suffered By Employer As Result Of Dishonest Or Willful Act Of Employee 11-3 Deductions For Loans Made To Employees 11-4 Deductions Must Be For Direct Benefit Of Employee 11-5 Deductions Allowed By IWC Orders.

6 Caveat 11-5 Deductions For Tardiness AND COVERAGE OF WAGE STATUTES 12-1 Claimants Have Right To Private Action 12-1 Exemptions For Public Employers OR PHYSICAL EXAMINATION COSTS STATEMENT REQUIREMENTS 14-1 Damages and Penalties For Failure To Provide Proper Wage Statement WAGES 15-1 division OF labor standards Enforcement Policies and interpretations manual APRIL, 2021 iv Prorata Vacation 15-1 Statute Does Not Require Employer Provide Vacation 15-1 Probation Periods 15-1 Use-It-Or-Lose-It Policies Are Not Allowed 15-1 Earnings Must Be Proportional 15-2 ERISA Preemption 15-2, 15-3 Sale Of Business Constitutes Discharge 15-4 Vacation vs.

7 Other Leave Benefits 15-4 PAY PROVISIONS 16-1 Determining ERISA Coverage Of Severance Plans 16-1, AND DISCRIMINATION PROTECTED RIGHTS 17-1 Enforcement Jurisdiction Of DLSE 17-2 Examples of Prohibited Retaliation 17-13 Filing Or Threatening To File With labor 17-13 Initiating Action or Notice Pursuant to labor Code 2699 17-14 Family Members Protected, Protection for Pre-emptive Retaliation 17-14 Penalties to Employees 17-14 California Equal Pay Act 17-15 Disclosure Of Information To Government Authorities or Employer 17-15 Filing Safety Complaint Or Refusal To Work In Unsafe Conditions 17-16 OF WAGES TIPS 19-1 Tip Pooling Limited 19-2 Service Charge May Be a Gratuity 19-3No Cost May Be Imposed For Recovery For Tips Left On Credit Cards BONDS REQUIREMENTS AND LIMITATIONS AND APPLICATIONS FOR EMPLOYMENT 21-1 Employee Right To Copy Of Contract 21-1 Polygraph And Similar

8 Tests Prohibited 21-1 BY EMPLOYEES PATRONIZING EMPLOYER 22-1 Illegal To Require Payment To Apply For Employment AGAINST PUBLIC POLICY OF EMPLOYEES BY MISREPRESENTATION INDUSTRY CONTRACTORS REQUIREMENTS 25-1 Direct Contractor Liability labor Code PRIVILEGES AND IMMUNITIES 26-1 OR LICENSED OCCUPATIONS, SUCCESSORSHIP, CAL WARN ACT CONTRACTOR vs . EMPLOYEE 28-1 Burden Of Proof 28-1 Control As A Factor 28-1 .. division OF labor standards Enforcement Policies and interpretations manual JUNE, 2002 v TABLE OF CONTENTS (Cont d) 28.

9 INDEPENDENT CONTRACTOR vs . EMPLOYEE (Cont d.) Economic Realities Test 28-2 Services For Which Contractor s License Is Required 28-3 29. OBLIGATIONS OF EMPLOYERS 29-1 Obligation To Indemnify Employee For Expenses Or Losses 29-1 labor Code Written Notice to Employees Upon Hire and for Changes 29-4 30. HEALTHY WORKPLACES, HEALTHY FAMILIES ACT OF 2014 30-131. CONTRACTS GENERALLY 31-132. CONTRACT interpretation - GENERALLY 32-133. CONTRACTS, IMPLIED-IN-LAW (QUASI-CONTRACTS) 33-1 34. COMMISSION WAGE PROVISIONS MUST BE IN WRITING 34-1 Bonus Plan Distinguished 34-1 Draws Against Commission 34-2 Forfeitures In Commission Plans 34-2 Commission Forfeitures Found To Be Illegal 34-3 35.

10 BONUSES 35-1 Voluntary Termination Before Vesting 35-1 Illegal Conditions 35-2 Discretionary Bonus 35-2 Termination Of Employment 35-2 36. EFFECT OF ARBITRATION AGREEMENTS 36-1 Collective Bargaining Agreements With Arbitration Clauses 36-1 Federal Arbitration Act Restrictions 36-2 Revocable Arbitration Agreements 36-2 Current Law Regarding Arbitration Clauses 36-3 37. LEGAL ENTITIES, JOINT EMPLOYER, CLIENT-EMPLOYER, JOINT LIABILITY 37-1 Liability for Other Person under labor Code 558 and 37-4 38.