BILL ANALYSIS �
SB 1255
Page 1
SENATE THIRD READING
SB 1255 (Wright)
As Amended August 23, 2012
Majority vote
SENATE VOTE :25-12
LABOR & EMPLOYMENT 5-2
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|Ayes:|Swanson, Ammiano, Allen, | | |
| |Furutani, Yamada | | |
| | | | |
|-----+--------------------------+-----+--------------------------|
|Nays:|Morrell, Gorell | | |
| | | | |
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SUMMARY : Provides a statutory definition for what constitutes
"suffering injury" for purposes of recovering damages pursuant
to the itemized wage statement requirements of current law.
Specifically, this bill :
1)Provides that an employee is deemed to "suffer injury" if the
employer fails to provide a wage statement.
2)Provides that an employee is deemed to "suffer injury" if the
employer fails to provide accurate or complete information
regarding the other specified items on the itemized wage
statement and the employee cannot "promptly and easily"
determine from the wage statement alone one or more of the
following:
a) The amount of gross wages or net wages paid to the
employee during the pay period or any of the other
information required to be provided on the itemized wage
statement, as specified.
b) Which deductions the employer made from gross wages to
determine the net wages paid to the employee during the pay
period. However, nothing in this provision alters the
ability of the employer to aggregate deductions, as
specified.
c) The name and address of the employer and, if a farm
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labor contractor, the name and address of the legal entity
that secured the services of the employer during the pay
period.
d) The name of the employee and only the last four digits
of his or her social security number or an employee
identification number.
3)Defines "promptly and easily" to mean a reasonable person
would be able to readily ascertain the information without
reference to other documents or information.
4)Provides that a "knowing and intentional failure" does not
include an isolated and unintentional payroll error due to a
clerical or inadvertent mistake. A fact finder may consider
as a relevant factor whether the employer, prior to an alleged
violation, has adopted and is in compliance with a set of
policies, procedures and practices that fully comply with the
requirement to provide accurate itemized wage statement.
5)Contains language to avoid a chaptering out conflict with two
other pending bills that amend Labor Code Section 226.
EXISTING LAW :
1)Requires every employer, semimonthly or at the time of each
payment of wages, to provide each employee with an accurate
itemized statement, in writing, that contains specified
information.
2)Provides that an employee "suffering injury" as a result of a
knowing and intentional failure by an employer to comply with
the itemized statement requirements is entitled to recover the
greater of all actual damages or $50 for the initial pay
period in which a violation occurs and $100 per employee for
each violation in a subsequent pay period, not exceeding an
aggregate penalty of $4,000.
FISCAL EFFECT : Unknown. This bill is keyed non-fiscal by the
Legislative Counsel.
COMMENTS : Existing law requires an employer to provide workers
with an accurate itemized wage statement that lists specified
information. Existing law also provides that an employee that
"suffers injury" as a result of an employer's failure to comply
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with these requirements is entitled to recover statutory
damages. In recent years, courts have grappled with defining
what "suffering injury" means for purposes of these provisions -
different courts have taken vastly different views as to the
meaning of this term.
This bill attempts to legislate a compromise by clearly
delineating which types of "true" violations will constitute
"suffering injury." Supporters contend that this will benefit
both workers (by protecting their fundamental right to receive
accurate information) and employers (by shielding them from
liability over "minor" or "insignificant" inaccuracies on the
wage statements).
The sponsor contends that both employers and employees benefit
from passage of this bill because it ensures that the most
extreme of the state and federal court decisions would no longer
be reliable guides for courts or agencies in interpreting
"suffering injury."
Analysis Prepared by : Ben Ebbink / L. & E. / (916) 319-2091
FN: 0005389