Archive for the ‘Paychecks’ Tag

Compliance with California Assembly Bill 1744 for Temporary Service Providers

california California Assembly Bill 1744 (AB 1744) takes effect on July 1st 2013. AB 1744 outlines new requirements for existing California Labor Code Section 226(a) and Section 2810.5 for temporary service providers. According to this bill, a temporary service provider is defined as an employing unit that contracts with clients or customers to supply workers to perform services for the clients or customers, such as a staffing agency.

 AB 1744 amends Section 226(a) by requiring temporary service providers to present employees with paystubs or wage statements that include the rate of pay and the total hours worked.

Labor Code Section 226(a)
  • Gross wages earned;
  • Total hours worked by the employee, except for any employee whose compensation is solely based on a salary and who is exempt from overtime ;
  • The number of piece-rate units earned and any applicable piece rate if the employee is paid on a piece-rate basis;
  • All deductions, provided that all deductions made on written orders of the employer may be aggregated and shown as a one line item;
  • Net wages earned;
  • The inclusive dates of the period for which the employee is paid;
  • The name of the employee and only the last four digits of his or her social security number or  an employee identification number other than a social security number;
  • The name and address of the employer, the name and address of  the legal entity that secured the services of the employer;
  • All applicable hourly rates in effect during the pay period and the corresponding number of hours worked at each hourly rate by the employee; and
  • For the temporary services employer, the rate of pay and the total hours worked for each temporary services assignment.  (Additional Amendments of AB 1744)

AB 1744 amends Section 2810.5 by requiring temporary service providers to include additional employment-related information in the written notice provided to employees at the time of hire. The California: Notice to Employee form can be used to capture the necessary information required to obtain compliance with AB 1744.   

Labor Code Section 2810.5
  • The rate or rates of pay and basis thereof, whether paid by the hour, shift, day, week, salary, piece, commission, or otherwise, including any rates for overtime, applicable;
  • Allowances, if any, claimed as part of the minimum wage, including meal or lodging allowances;
  • The regular payday designated by the employer in accordance with the requirements of this code;
  • The name of the employer, including any “doing business as” names used by the employer;
  • The physical address of the employer’s main office or principal place of business, and a mailing address, if different;
  • The telephone number of the employer;
  • The name, address, and telephone number of the employer’s workers’ compensation insurance carrier;
  • Any other information the Labor Commissioner deems material and necessary; and
  • For temporary services employers, the notice must also include the name, the physical address of the main office, the mailing address if different from the physical address of the main office, and the telephone number of the legal entity for whom the employee will perform work. (Additional Amendments of AB 1744)