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California Pay Statement Compliance
California specifically requires that employers provide a pay statement to employees semi-monthly or at the time of each payment of wages. In addition, like many states, California requires that certain information appear on employee pay statements. Employers who do not meet California pay statement requirements can be exposed to statutory penalties and civil suits filed by employees, including collective actions. For example, an error in an employer name or address, missing or incorrect rates of pay, or missing or incorrect beginning and ending dates of the payroll period can be a sufficient basis for employees to pursue substantial civil penalties. California employers regularly face legal claims for millions (or tens of millions) of dollars for pay statement errors, even when employees’ pay was calculated correctly.
If you currently have California employees, given the potential for a significant financial impact on your business, I strongly recommend you conduct a thorough review of your California employees’ pay statements.
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