California Wage & Hour Reviews
Is this position exempt or non-exempt?
When is overtime required?
Is this an employee or a contractor?
When do you pay for meal periods?
Do we need an I-9 for everyone?
These questions and hundreds of others just like them are the stuff business owner nightmares are made of. The complexity of the California wage and hour regulations is second only to the tax code, and even that can be debatable at times. Just because a business practice is logical does not mean that it complies with the regulations. Errors and omissions can be a time bomb ticking away inside your business, and all it takes is one event to suddenly exposure your business to years of accumulated liability. Probably the most complex and controversial are the rules and regulations regarding salaried exempt positions.
YPP is constantly evaluating positions to establish those that do and do not qualify as exempt under the extremely complex rules established by the state. Our professionals follow the changes as they flow out of Sacramento and advise our clients on how these impact their business.
The liability exposure can be enormous and can literally destroy a business; just consider these simple examples:
A subcontractor that gets reclassified as an employee exposes you to federal and state tax liabilities going back years, as well as workers’ compensation liability, for both injuries and premiums. Additionally, there are often additional monies due to the employee in order to bring the company into compliance with wage & hour law.
Each missing I-9 can cost you $1,000, and can also expose you to civil and potentially criminal liability
Exempt to non-exempt reclassification can cost you tens of thousands of dollars in overtime going back years, and there have been several recent class action suits by employees in California who were wrongly classified as exempt. The employees won.
Undocumented meal periods can result in penalties for multiple years, for every employee. Remember that all it takes is one claim with the Labor Commissioner, and all your employee files are open to scrutiny.
YPP’s HR Professionals can help by providing a review of your practices in this area of your business. They can look at the tough calls and guide you through the decision process. YPP’s HR Professionals have expertise in crafting compensation and payment systems that will bring your business into compliance while strengthening your bottom line.
Your HR Manager understands the interplay between your human resources and the rest of your business, and can help you utilize those resources to maximum advantage for your business and your employees. Put YPP Professionals on your team and focus on the business of your business.
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