Yes. For purposes of the notice requirement, “pay” is not limited to a time-based or piece-based measure of compensation for labor performed by an employee, but includes all rates fixed or ascertained by calculation. DLSE views the term “pay” synonymously with the term “wages.” The word “pay” ordinarily means “a paying or being paid; payment” and “money paid, esp. for work or services; wages or salary.” (Webster’s New World Collegiate Dictionary, 4th Ed, 2001, p. 1058). This ordinary meaning for “pay” thus consists of the concept of a payment of money for work or services performed which is fundamentally consistent with the definition wages. “Wages” is statutorily defined to include “all amounts for labor performed by employees of every description whether the amount is fixed or ascertained by the standard of time, task, piece, commission basis, or other method of calculation.” (Labor Code 200(a)). Accordingly, if a rate is fixed by hour, commission, piece rate, or a combination thereof, such rates must be provided in terms of a money value and basis for earning such rate. If the rate is ascertained by some other method of calculation, basic information specifying the calculation must be provided and an employer must include all rates of compensation in the notice. An employer need only nominally and briefly provide each type of the pay and rate an employee will receive. For example, specific detail of formulas need not be included, as long as accurate information stating the basis of pay is provided, e.g. “$10.00 per hour, plus commissions of ___% of sales closed during prior month.” Any additional reference to or incorporation of another document or attachment must be specifically described on the notice.
October 2018
Tags: California, Wage Theft Prevention Act