Payroll FAQs

What procedures should be followed if an employee has multiple pay rates?

An employer must put all pay rates on the notice (and on the wage statement). The notice must include “[t]he 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, as applicable.” (Labor Code 2810.5(a)(1)(A)).  The Legislature’s inclusion of language referring to “the rate or rates of pay” contemplates that several rates may apply to an employment relationship and thus all applicable rates must be provided in the notice (or may be attached as a separate sheet to the notice with a clear reference in the notice to the attachment, indicated in the space for “Rate(s) of Pay”). (Underlined portion added 1/23/12)


October 2018

Tags: California, Wage Theft Prevention Act