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Itemized Wage Statements Not Required to Show Hours Worked by Certain Exempt Employees

Aug 18, 2016

HR360, Inc.
August 12, 2016

Law Effective January 1, 2017

A new law in California provides that itemized wage statements are not required to show total hours worked by certain exempt employees.

Background
Semimonthly or at the time of each payment of wages, an employer in California must furnish to its employees (either as a detachable part of the checks, drafts, or vouchers paying the employees' wages, or separately if wages are paid by personal check or cash) an accurate itemized wage statement in writing showing certain required information.

The required information includes (among other things) total hours worked by the employee—except for any employee whose compensation is solely based on a salary and who is exempt from the payment of overtime under California law (§ (a)) or any applicable order of the Industrial Welfare Commission (IWC). Effective January 1, 2017, a new law clarifies this particular exception.

Hours Worked Not Required on Wage Statements for Certain Exempt Employees
Under the new law, an itemized wage statement furnished by an employer will not be required to show total hours worked by the employee if any of the following apply:

  • The employee's compensation is solely based on a salary and the employee is exempt from the payment of overtime under California law (§ (a)) or any applicable order of the IWC.
  • The employee is exempt from the payment of minimum wage and overtime under certain exemptions, including (among other things):
    • The exemption for persons employed in an executive, administrative, or professional capacity provided in any applicable IWC wage order.
    • The exemption for outside salespersons provided in any applicable IWC wage order.
    • The overtime exemption for computer software professionals paid on a salaried basis provided in California law.
    • The exemption for individuals who are the parent, spouse, child, or legally adopted child of the employer provided in any applicable IWC wage order.

The new law is effective January 1, 2017. Click here to read the text of the law.

To review other laws specific to California, visit the State Laws section, click on California, and choose your topic of interest from the left-hand navigation menu.

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