United States: California Wage Theft Prevention Act: Revised Template And New FAQ's Still Leave Some Open Questions

Last Updated: May 23 2012
Article by Aaron Agenbroad, George S. Howard Jr., Cindi L. Ritchey, Steven Zadravecz, Robert A. Naeve, Rick Bergstrom and F. Curt Kirschner Jr.

Most Read Contributor in United States, September 2019

California's Wage Theft Prevention Act (AB 469) became effective on January 1, 2012. The law created new, detailed disclosure requirements that employers must provide to newly hired nonexempt employees. The California Division of Labor Standards Enforcement ("DLSE") promulgated a template for use by employees, but several aspects of the template prompted questions and objections from employers. On April 12, 2012, the DLSE for the second time since January 1 revised the template and updated its list of Frequently Asked Questions ("FAQs") concerning compliance with AB 469.

Newly added Labor Code section 2810.5 requires employers to provide to each newly hired nonexempt employee in California a written notice stating the employee's rate(s) of pay, the basis for the pay (hour, shift, day, week, salary, etc.), any allowances claimed as part of the employee's wages, the payday, and the name and address of the employer at the time of hiring. Employees who are exempt from payment of overtime pay and many (but not all) employees working under collective bargaining agreements need not be provided with the notice required by AB 469.

In connection with the new law, the DLSE released a series of FAQs in January 2012, along with a template "Notice to Employee" ("Notice") for employer use. On April 12, 2012, the DLSE again revised its template and updated the FAQs to provide additional information. A copy of the revised template and FAQs can be accessed via this link.

The revised FAQs address questions regarding information that must be included on the Notice:

  • The Acknowledgment of Receipt section of the template is optional. If an employee refuses to sign the Notice, an employer can note the refusal on the employer's copy of the Acknowledgement.
  • The Rate of Pay section must identify each method of pay calculation, so that employees who earn an hourly regular rate of pay and a commission are notified of both methods of payment.
  • The Rate of Pay section must include a specific description of an overtime calculation, which can include a minimum overtime rate, using multipliers of 1.5 and 2.0 times the employee's hourly rate of pay. However, if an employee earns additional pay, such as commissions, that information must also be included. For example, if an employee earns $9.00/hour, plus commissions and a nondiscretionary bonus, the FAQs note that the Rate of Pay section may read: "Overtime Rate: At least $13.50/hour (1½ times regular rate) & $18.00/hour (double time rate), subject to upward adjustment based upon earned commissions (10% of sales) and bonus (2% of department gross sales)."
  • The Notice must be provided at the "time of hiring." This date may be determined by the employer and employee, as long as it is no later than the employee's start date.
  • Employers no longer need to designate the employment agreement as either written or oral. However, if there is a written employment agreement that provides the rate(s) of pay, the Notice must state whether all rate(s) of pay are included in the written agreement.

The FAQs also address several new questions regarding whom to list as the Hiring Employer and whether to issue a replacement Notice:

  • An employer must identify on the Notice its full formal legal name, including its entity designation (e.g., Inc., Co., Corp., LLC, etc.). It also must list any other name it is doing business as (the "dba"). A "dba" can be a fictitious business name or any informal names, which may be very similar to or completely different from the full, formal legal name.
  • Employers do not need to issue a new or replacement Notice to employees who previously received the earlier version of the template unless there are changes to the information previously provided. If there are changes, an employer must provide Notice that complies with the new template within seven calendar days of the change.

Finally, the new FAQs address several questions related to staffing agency situations:

  • Staffing agencies include temp services, leasing companies, and PEOs. Staffing agencies that hire employees must provide the Notice to employees and check the box for "staffing agency," even if the work is performed at (or for) another business. Recruiting services and payroll processing services are not staffing agencies for purposes of this checkbox.
  • When a staffing agency is the hiring employer, it must also state "the other entity for whom [the] employee will perform work," or the business entity to whom employees are leased if the staffing agency has such information. As long as the staffing agency provides this information, the business for which the employees perform work is not required to provide a separate Notice.
  • If a staffing agency knows where employees will be placed, it can provide information regarding all of these employers on the initial Notice. Alternatively, the staffing agency must comply with Labor Code section 2810.5 and provide notice of each new employer in another writing required by law within seven calendar days of the new placement or on a pay stub furnished in accordance with Labor Code section 226. Finally, a staffing agency can also provide the information by providing a new Notice for each new subsequent worksite placement.

It remains unclear from the FAQs and the language of Labor Code section 2810.5 whether a company using employees hired by staffing agencies must separately provide Notice to workers who perform work for them. First, a company that leases employees may retain control over their hiring, arguably bringing that employer within the statute. Additionally, FAQ 29's conditional language suggests that if a staffing agency does not identify the entity for which work is being performed, that entity must provide the information.

Conclusion and Recommendation

Any employer with employees in California should review carefully the revised form and FAQs. In particular, employers must be very careful in completing the form. The required disclosure of overtime rates of pay should be completed as described in the FAQs. Employers should not attempt to combine the required disclosures with other documentation; the DLSE has clearly stated that the Notice must be a stand-alone document whether the employer uses the DLSE form or the employer's equivalent form. The form must be completed in the language the employer normally uses to communicate employment-related information to the employee. If the employer develops its own form, it must contain all of the information required by the DLSE's template (the DLSE states that the Acknowledgement of Receipt portion of the form is optional). We do not recommend that employers provide this form to employees who were already on the payroll prior to January 1, 2012.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

To print this article, all you need is to be registered on Mondaq.com.

Click to Login as an existing user or Register so you can print this article.

Similar Articles
Relevancy Powered by MondaqAI
In association with
Related Topics
Similar Articles
Relevancy Powered by MondaqAI
Related Articles
Related Video
Up-coming Events Search
Font Size:
Mondaq on Twitter
Mondaq Free Registration
Gain access to Mondaq global archive of over 375,000 articles covering 200 countries with a personalised News Alert and automatic login on this device.
Mondaq News Alert (some suggested topics and region)
Select Topics
Registration (please scroll down to set your data preferences)

Mondaq Ltd requires you to register and provide information that personally identifies you, including your content preferences, for three primary purposes (full details of Mondaq’s use of your personal data can be found in our Privacy and Cookies Notice):

  • To allow you to personalize the Mondaq websites you are visiting to show content ("Content") relevant to your interests.
  • To enable features such as password reminder, news alerts, email a colleague, and linking from Mondaq (and its affiliate sites) to your website.
  • To produce demographic feedback for our content providers ("Contributors") who contribute Content for free for your use.

Mondaq hopes that our registered users will support us in maintaining our free to view business model by consenting to our use of your personal data as described below.

Mondaq has a "free to view" business model. Our services are paid for by Contributors in exchange for Mondaq providing them with access to information about who accesses their content. Once personal data is transferred to our Contributors they become a data controller of this personal data. They use it to measure the response that their articles are receiving, as a form of market research. They may also use it to provide Mondaq users with information about their products and services.

Details of each Contributor to which your personal data will be transferred is clearly stated within the Content that you access. For full details of how this Contributor will use your personal data, you should review the Contributor’s own Privacy Notice.

Please indicate your preference below:

Yes, I am happy to support Mondaq in maintaining its free to view business model by agreeing to allow Mondaq to share my personal data with Contributors whose Content I access
No, I do not want Mondaq to share my personal data with Contributors

Also please let us know whether you are happy to receive communications promoting products and services offered by Mondaq:

Yes, I am happy to received promotional communications from Mondaq
No, please do not send me promotional communications from Mondaq
Terms & Conditions

Mondaq.com (the Website) is owned and managed by Mondaq Ltd (Mondaq). Mondaq grants you a non-exclusive, revocable licence to access the Website and associated services, such as the Mondaq News Alerts (Services), subject to and in consideration of your compliance with the following terms and conditions of use (Terms). Your use of the Website and/or Services constitutes your agreement to the Terms. Mondaq may terminate your use of the Website and Services if you are in breach of these Terms or if Mondaq decides to terminate the licence granted hereunder for any reason whatsoever.

Use of www.mondaq.com

To Use Mondaq.com you must be: eighteen (18) years old or over; legally capable of entering into binding contracts; and not in any way prohibited by the applicable law to enter into these Terms in the jurisdiction which you are currently located.

You may use the Website as an unregistered user, however, you are required to register as a user if you wish to read the full text of the Content or to receive the Services.

You may not modify, publish, transmit, transfer or sell, reproduce, create derivative works from, distribute, perform, link, display, or in any way exploit any of the Content, in whole or in part, except as expressly permitted in these Terms or with the prior written consent of Mondaq. You may not use electronic or other means to extract details or information from the Content. Nor shall you extract information about users or Contributors in order to offer them any services or products.

In your use of the Website and/or Services you shall: comply with all applicable laws, regulations, directives and legislations which apply to your Use of the Website and/or Services in whatever country you are physically located including without limitation any and all consumer law, export control laws and regulations; provide to us true, correct and accurate information and promptly inform us in the event that any information that you have provided to us changes or becomes inaccurate; notify Mondaq immediately of any circumstances where you have reason to believe that any Intellectual Property Rights or any other rights of any third party may have been infringed; co-operate with reasonable security or other checks or requests for information made by Mondaq from time to time; and at all times be fully liable for the breach of any of these Terms by a third party using your login details to access the Website and/or Services

however, you shall not: do anything likely to impair, interfere with or damage or cause harm or distress to any persons, or the network; do anything that will infringe any Intellectual Property Rights or other rights of Mondaq or any third party; or use the Website, Services and/or Content otherwise than in accordance with these Terms; use any trade marks or service marks of Mondaq or the Contributors, or do anything which may be seen to take unfair advantage of the reputation and goodwill of Mondaq or the Contributors, or the Website, Services and/or Content.

Mondaq reserves the right, in its sole discretion, to take any action that it deems necessary and appropriate in the event it considers that there is a breach or threatened breach of the Terms.

Mondaq’s Rights and Obligations

Unless otherwise expressly set out to the contrary, nothing in these Terms shall serve to transfer from Mondaq to you, any Intellectual Property Rights owned by and/or licensed to Mondaq and all rights, title and interest in and to such Intellectual Property Rights will remain exclusively with Mondaq and/or its licensors.

Mondaq shall use its reasonable endeavours to make the Website and Services available to you at all times, but we cannot guarantee an uninterrupted and fault free service.

Mondaq reserves the right to make changes to the services and/or the Website or part thereof, from time to time, and we may add, remove, modify and/or vary any elements of features and functionalities of the Website or the services.

Mondaq also reserves the right from time to time to monitor your Use of the Website and/or services.


The Content is general information only. It is not intended to constitute legal advice or seek to be the complete and comprehensive statement of the law, nor is it intended to address your specific requirements or provide advice on which reliance should be placed. Mondaq and/or its Contributors and other suppliers make no representations about the suitability of the information contained in the Content for any purpose. All Content provided "as is" without warranty of any kind. Mondaq and/or its Contributors and other suppliers hereby exclude and disclaim all representations, warranties or guarantees with regard to the Content, including all implied warranties and conditions of merchantability, fitness for a particular purpose, title and non-infringement. To the maximum extent permitted by law, Mondaq expressly excludes all representations, warranties, obligations, and liabilities arising out of or in connection with all Content. In no event shall Mondaq and/or its respective suppliers be liable for any special, indirect or consequential damages or any damages whatsoever resulting from loss of use, data or profits, whether in an action of contract, negligence or other tortious action, arising out of or in connection with the use of the Content or performance of Mondaq’s Services.


Mondaq may alter or amend these Terms by amending them on the Website. By continuing to Use the Services and/or the Website after such amendment, you will be deemed to have accepted any amendment to these Terms.

These Terms shall be governed by and construed in accordance with the laws of England and Wales and you irrevocably submit to the exclusive jurisdiction of the courts of England and Wales to settle any dispute which may arise out of or in connection with these Terms. If you live outside the United Kingdom, English law shall apply only to the extent that English law shall not deprive you of any legal protection accorded in accordance with the law of the place where you are habitually resident ("Local Law"). In the event English law deprives you of any legal protection which is accorded to you under Local Law, then these terms shall be governed by Local Law and any dispute or claim arising out of or in connection with these Terms shall be subject to the non-exclusive jurisdiction of the courts where you are habitually resident.

You may print and keep a copy of these Terms, which form the entire agreement between you and Mondaq and supersede any other communications or advertising in respect of the Service and/or the Website.

No delay in exercising or non-exercise by you and/or Mondaq of any of its rights under or in connection with these Terms shall operate as a waiver or release of each of your or Mondaq’s right. Rather, any such waiver or release must be specifically granted in writing signed by the party granting it.

If any part of these Terms is held unenforceable, that part shall be enforced to the maximum extent permissible so as to give effect to the intent of the parties, and the Terms shall continue in full force and effect.

Mondaq shall not incur any liability to you on account of any loss or damage resulting from any delay or failure to perform all or any part of these Terms if such delay or failure is caused, in whole or in part, by events, occurrences, or causes beyond the control of Mondaq. Such events, occurrences or causes will include, without limitation, acts of God, strikes, lockouts, server and network failure, riots, acts of war, earthquakes, fire and explosions.

By clicking Register you state you have read and agree to our Terms and Conditions