1. DID YOU BRING YOUR 5 QUESTIONS FROM FUNCTIONAL AREA NUMBER 1 – Compensation/Wage and Hour Part 2?
Compensation/Wage and Hour There are 4 functional areas that we will look at in the exam preparation each containing a number of prerecorded lectures. Please keep in mind that listening to the pre-recorded lectures is not a substitute for reading the books and taking the practice exams over and over again until you reach 100%.

2. Exceptions to the General Overtime Laws
Alternative Work Weeks
14 In California there are exceptions to the general overtime law. Valid alternative work schedules trump the overtime rule.

3. Order 5 - Housekeeping Employees of a hospital or an establishment
Camp Counselors
Personal Attendants
Resident Managers of Homes for the Aged
Employees directly responsible for children
Ambulance Drivers
And then there is Order # 5 – not only does it include employees covered by an alternative work week, but it states that employees of a hospital or an establishment that cares for the sick, aged, mentally ill, etc. and reside there can work a 14 day stretch in lieu of the 7th day rule if agreed upon by the employee and the employer and no double time is required.

4. Order 5 - Housekeeping Employees of a hospital or an establishment
Camp Counselors
Personal Attendants
Resident Managers of Homes for the Aged
Employees directly responsible for children
Ambulance Drivers
Camp counselors have no daily overtime requirements as long as they don’t work more than 54 hours in a week.

5. Order 5 - Housekeeping Employees of a hospital or an establishment
Camp Counselors
Personal Attendants
Resident Managers of Homes for the Aged
Employees directly responsible for children
Ambulance Drivers
No daily overtime or weekly overtime provided employee does not work more than 40 hours nor more than 6 days in a workweek. No doubletime is required.

6. Order 5 - Housekeeping Employees of a hospital or an establishment
Camp Counselors
Personal Attendants
Resident Managers of Homes for the Aged
Employees directly responsible for children
Ambulance Drivers
Same as personal attendants if it is a small residential facility with less than 8 beds.

7. Order 5 - Housekeeping Employees of a hospital or an establishment
Camp Counselors
Personal Attendants
Resident Managers of Homes for the Aged
Employees directly responsible for children
Ambulance Drivers
Ok employees directly responsible for children in a residential care facily are not paid daily overtime unless they work more than 16hours in a work day or 48 hours in a work week.

8. Order 5 - Housekeeping Employees of a hospital or an establishment
Camp Counselors
Personal Attendants
Resident Managers of Homes for the Aged
Employees directly responsible for children
Ambulance Drivers
Ambulance drivers and attendants scheduled for 24 hour shifts who have agreed in wriing not to be apid daily overtime.

9. Order 10 – Amusement/Recreation
Ski Area Employees
I mentioned earlier, ski area employees are not paid overtime after 48 hours.

10. Order 12 – Motion Picture Industry
Minors must be paid time and a half for all hours worked on the 6th day.

11. Order 14 - Agriculture

12. Order 15
Live In
Non Live In

13. Order 15
Live In
Non Live In

14. Split-Shift

15. On-Call

16. Reporting Time Reports to work with no work available
Reports to work and is terminated
Half of their scheduled work time with no less than 2 hours and no more than 4 hours

17. Exceptions to Reporting Time
Acts of God
Utility failure
Employee threatened
Employer required to cease operations by a local state or federal government member

18. Makeup Time

19. Travel Time Paid for travelling for work
Pay can be a lower rate than normal but less than minimum wage

20. Commission Payment based on a percent of Sales
In California commissions are considered wages
Commission Agreements
In writing
Specific to the employer and employee
Detailed
Signed by both employee and employer
Retain copy of agreement 19

21. Advances, Draws and Guarantees
Must be paid at least minimum wage
Outside Sales people must be paid at least 1 and ½ minimum wage
Advance, Draw or Guarantee 19

22. Piece Rate – AB1513
Employees are paid by the piece and must earn at least minimum wage.
California - rest and recovery periods

23. Fair Pay Act – SB 358 Seniority Systems Merit Systems
System measuring earnings by quantity and quality
A differential based on any bonafide factor other than sex, such as education training or experience

24. Cheerleaders – AB 202 21

25. Payment for Time Not Worked

26. Vacation and PTO
Vacation and PTO are considered wages under California law and therefore must be accrued to show earnings.
It must be paid out at the time of termination
Good vacation policies provide a reasonable cap on vacation accrual and allow a reasonable carry over from year to year.
It is also ok to pay out earned vacation at the end of each year.
What is the difference between vacation and paid time off? Vacation is designed to take a vacation and paid time off is designed to take time off for any reason the employee desires, whether is it because they are sick or they want to go on vacation.

27. Holiday
Holiday pay is not mandatory, but if an employer does provide holiday pay, it is paid at the employee’s regular rate of pay.
Different organizations may have double time payments for those that work on holidays and they may not.
Certainly organizations with Union agreements will most likely have double for worked holidays.

28. Sick Pay California’s Healthy Workplaces Healthy Families Act
All Employers
24 hours or 3 days 22

29. Sick Pay Calculations
Average of straight time wages over the immediate 90 days preceding the use of the sick time
Average of straight time wages of the pay period for which sick time is being use.

30. Compensatory Time Off May be used in limited circumstances.
Upon Employee Request in lieu of overtime
Must be used in the pay period 23

31. Timing of Pay
California law requires that pay day, time and location are posted where employees can see it.
If the regular pay day falls on a holiday, employees may delay pay until the next business day. 23

32. Regular Pay Wages earned between the 1st and the 15th
No later than the 26th
Wages earned between the 16th and the last day of the month
10th day of the next month
Weekly, biweekly, semimonthly
Within 7 days of the end of the pay period
Exempt Employees
Monthly – before the 26th of the month 23

33. Overtime Pay
Can be delayed to the next pay period

34. Final Pay Voluntary termination with notice
On the last day worked
Voluntary termination without notice
Within 72 hours of last day worked. Payments must be ready and available at the employer’s place of business
Involuntary termination
On notice – Last day worked 24

35. Fines and Penalties for Non-Compliance
Initial Violation:
$100 per instance, per employee
Subsequent violation
$200 per instance per employee plus 25% of the amount withheld
Waiting time penalty equal to the employee’s regular rate of pay for each that payment remains unpaid up to a total of 30 days.
All employers are subjected to penalties for not properly paying final wages to their employees.

36. Permitted and Prohibited Payroll Deductions
State or Federal Required
Income tax, Social Security, Medicare, SDI
Wage Garnishments
Child Support, alimony, spousal support, other legal
Employee Contributions
Benefits, Union Dues, Repayment of Employee Loan
Employers need to ensure that they only take permitted payroll deduction such as: 24

37. Permitted and Prohibited Payroll Deductions
Dishonest or Willful Acts
Gross Negligence
Reimbursement of Overpayment of Wages
Must be approved in writing
Meals and Lodging
Pursuant to specific wage orders
Unreturned Tools/Uniforms
Signed advanced notice
Employers need to ensure that they only take permitted payroll deduction such as: 24 and 25

38. Garnishments 25% or 40 times minimum wage (whichever is less)
Child Support takes priority over all other orders
In California, as under Federal law, employers can only garnish an employee’s pay after receiving a court order of no more than 25% or 40 times the stte minimum wage whichever is less. If there are more than one court order, employers required to process child support first. Huge fines can be levied on employers who fail to handle garnishments correctly

39. Business Expense Reimbursement
Mileage
Cell Phone
Training
Vehicles
California employers must reimburse all expenses to employees that are used to perform their job. The 3 most common reimbursements are mileage, cell phone and training and the use of their vehicle for company related business. It does not include time spent driving to the workplace or home from the workplace.

40. Timekeeping Legal Name Address Occupation SSN Minor designation
Start and end times
Meal Periods
Split Shifts
Total Hour Worked
Rate of Pay
Piece Rates
Deductions
California law requires employers to keep accurate time keeping records for each nonexempt employee. 26

41. Rounding Practices
California law allows employers to round to the nearest 5 minutes, 1/10th or ¼ of an hour. It is important to understand how rounding rules work to make sure that employers are fully paid.

42. Off the Clock Work
Employees must be paid off the clock work. Employers must have a policy that communicates that employees will be disciplined for performing unauthorized work.

43. Leave Record Keeping
California employers are required to maintain proper leave records. If the Labor Commissioner requests to view payroll records and the employer is found to not have accurate records the employers can be subject to civil penalties of $500.

44. Individual Notices and Pay Stubs
Notice to Employee Change of Status Form
Pay Stubs
California employers are required by law to provide a Notice to Employee at time of hire that lists their rates of pay and employer information. This notice is also required when there is any change of pay rate and upon termination. Employers are also required to provide wage statements with each paycheck with very specific information that may not be required in other states, such as the amount of sick pay. There are penalties involved when California employer fail to provide notices and pay stubs as required by law from $50 to $4,000 per employee, per pay period plus attorney fees.

45. Posting and Notices
California employers are required to post numerous notices pertaining to federal and California labor law where all employees can see them. All California posters can be downloaded at no cost from the California.gov website or employers may purchase all in posters at a minimum fee. Failure to post can result in fines up to $17,000. Be prepared to answer questions on the exam such as what employers are required to post which notice.

46. Documentation and Records Retention
Documentation - There are different limits required for different documents. As a rule of thumb, California HR practitioners are safe if they maintain records for a period of the employment duration plus four years except for 3 items: Job injuries causing loss of work time
Pension and Welfare plans Six years
Safety and toxic chemical exposure 30 years

47. Electronic Record Keeping
Electronic record keeping is allowed in California as long as they are sure they are following the required protocol for storage of specific, and potentially confidential information.