An employer’s failure to pay wages in accordance with an employment contract – even if what’s paid is in excess of the minimum wage – can now be penalized with fines and restitution orders by the California Labor Commissioner.
That’s thanks to SB 688, a newly-passed measure that amends California Labor Code Ch. 723 s. 1197.1, which goes into effect next month.
“Contract wages,” as explained in the bill/statute, are wages based upon an agreement between a company and a worker for regular, non-overtime hours that is in excess of the applicable minimum wage.
Los Angeles labor law attorneys can explain that under existing law, employers (or those acting as officers/agents) who fail to pay a worker less than minimum wage can be subject to citation and penalties from the Labor Commissioner. However, that power of enforcement does not extend when workers are paid in excess of minimum wage – yet should be paid more according to their employment contract. Continue Reading ›