California Minority Counsel Program Presents

1. California Minority Counsel ProgramPresents The DLSE’s Growing Arsenal What Every Employer Needs to Know About the Wage Theft Protection Act and the DLSE’s Criminal Investigation Unit PANELISTS: Frank Capetillo, Sr. Special Investigator, DIR, DLSE Amber M. Grayhorse, Senior Associate, Nossaman LLP Tim Lykowski, Sr. VP of Employment Litigation, Fox Group Legal Dept. MODERATED BY: Aundrea L. Smith, Associate, Sanchez & Amador LLP Hosted & Sponsored by

2. What Will We Cover? • Wage Theft Protection Act’s Written Wage & Hour Notice to New Employees • DLSE’s Criminal Investigation Unit 2

3. Wage & Hour Notice: Labor Code § 2810.5 (1/1/12) • At the time of hiring, an employer shall provide each employee a written notice, in the language the employer normally uses to communicate employment-related information to the employee, basic employment information • Labor Commissioner must have a template • Employer shall notify employees in writing of any changes to the information within 7 calendar days of the changes

4. Wage Notice: What Must I Include? • All rates & basis (hourly, shift, daily, weekly, salary, commission, etc.) of pay, incl. O/T rates • Minimum wage allowances, if any, including meal and lodging allowances • Regular payday • Employer’s Legal Name, incl. “dba” names

5. Wage Notice: What Must I Include? • Physical and mailing address of employer’s main office/principal place of business • Employer’s phone number • Contact info of employer’s W/C insurance carrier • Any other info Labor Commissioner deems material or necessary

6. What does the DLSE Require as “Material & Necessary”? • Information re staffing agency • Information re written agreements to providing the rate • No longer have to try to respond to whether Employment Agreement is Oral or Written

7. Who Must Provide Wage Notices? All employers who “engage another . . . to do something for the benefit of the employer or a third person” in California. • Best Practices: • Any employer that has employees in California should provide notice to California employees • Any employer in California should provide notice to all employees • Including: • Private employers • Private schools • Non-profit corporations (CMCP) • Private sub-contractors

8. Who Must Provide Wage Notices? Exceptions: • Public employees • Exempt employees • Most employees covered by collective bargaining agreements

9. When Must the Notice be Given? At the time of hiring • Hiring date vs. start date • No later than the start date Best Practice: Give the Notice to existing employees if you haven’t already?

10. Do I have to Update the Notice? Employers must notify employees in writing of any changes to the info in the Notice within 7 calendar days of the change Unless: • All changes are reflected in timely wage statement • Employer provides notice of changes in another writing required by law w/in 7 days

11. What if my Employees Speak Different Languages? Notice must be given in language normally used to communicate employment related information Labor Commissioner has templates in six languages: • English • Vietnamese • Chinese • Korean • Tagalog • Spanish

12. What Wage Notice Records Must I Maintain? • Record of Notices provided • Can be electronic • Best Practices: • Acknowledgement of Receipt • But cannot require employees to sign Acknowledgement • Maintain Acknowledgement for 4 years after termination

13. Wage Notice:What Else do I Need to Know? • DLSE templates and FAQs: http://www.dir.ca.gov/dlse/FAQs-NoticeToEmployee.html • Not necessary to use template, but Notice must contain all info in DLSE’s template • If you prepare your own Notice form, it must be a free standing form

14. Criminal Investigation Unit (CIU) • Established Feb. 27, 2012 • Designed to investigate employers who perpetrate wage theft and other criminal activities against workers • Peace officers make investigations & arrests for L.C. violations

15. What is CIU Doing? • Arrest employers for violating Penal Codes and Labor Codes. • Cite employers into criminal court for violating Labor codes and Penal Codes. • File criminal charges with the district attorney’s office and other prosecutors (including city attorneys). • Serve subpoenas. • Obtain and serve inspection warrants. • Obtain and serve search warrants. • Obtain arrest warrants for employers. • Conduct surveillance.

16. What is CIU’s Focus? • Flagrant mistreatment of workers • Not innocent violators • W/C violations • Theft of labor • Payment of wages with bounced checks • Unlicensed farm labor contractors/ Garment mfr’s • Public works projects kickbacks • Minor worker violations

17. What Else do I Need to Know about the DLSE? • Increased enforcement efforts • August 7, 2012: Joint DLSE/DOL Inspection of Garment Manufacturing Businesses, Downtown Los Angeles • L.C. Julie Su is 1st L.C. recognized as Top Labor & E/t Attorney in California • Increased efforts to enforce citations • Most common violations: • Failure to carry workers’ compensation • Failure to pay overtime compensation

18. Thank you! For any questions, please contact: Amber M. Grayhorse agrayhorse@nossman.com www.nossaman.com 213.612.7864 Aundrea L. Smith smith@sanchez-amador.com www.sanchez-amador.com 213.955.7206