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California Issues Revised Wage Theft FAQs

American Staffing Association (04/23/12) Stephen Dwyer

The California Division of Labor Standards Enforcement has issued revised answers to frequently asked questions about, and a revised model wage notice form for complying with, a law that requires employers to provide certain wage and other information to employees at the time of hire. The FAQs were revised in response to questions and concerns expressed by employers regarding the wage notice requirement. ASA was among the first to seek clarification of the notice requirements, pointing out that the original model DLSE form was problematic because it appeared to require that staffing firm clients provide the notice to the staffing firm’s employees. The revised form clarifies that staffing firms, not their clients, are responsible for providing the notice to temporary employees.

Concerns remain for staffing firms, such as revised FAQ No. 30, which suggests that, if the client is not known at the time of hire, the client’s name, address, and telephone number must be provided to the employee, either in a new notice or on a timely paystub. This is not practical for staffing firms, especially in cases where temporary employees are assigned to multiple clients in the same pay period.

To address these concerns, ASA representatives will meet with the California labor commissioner May 8 to discuss the compliance issues the FAQs pose for the staffing industry. While waiting for clarification from DLSE, California staffing firms should consider using the suggested notice form developed by ASA, which reflects the practical realities of the temporary staffing business and which the association believes is consistent with the law.