One of the bigger challenges facing employers is ensuring that all workers receive the correct amount of pay. Whether intentional or not, some employees may not receive all of their pay and overtime wages.
In an attempt to help those individuals who do not receive all their wages and overtime pay, the California State Senate passed legislation that would allow state authorities more power in collecting back pay for employees who do not receive all of their pay.
How It Works
The goal of the bill is to try and address the challenge of collecting back pay from companies who evade state judgments. In some instances, a business may change their name, transfer assets to another corporation or establish a shell company to avoid paying the wages owed.
If the legislation is signed by Governor Jerry Brown, the California Labor Commissioner’s Office would have authority to hold both individuals and companies accountable for any wages that are not paid. Any penalties would also extend to any businesses that take over a company if the operations of both organizations are similar in nature.
How This Affects Businesses
If signed into law, the wage theft bill would affect both workers and companies. The employee would be able to collect any back wages, including overtime, that they are entitled to but did not receive. At the same time, the business would be required to pay all owed money. Furthermore, the organization would be prohibited from taking side steps that would prevent them from paying the wages to the worker.
Conclusion
If a company has an employee that claims they are owed back wages and overtime compensation, it could be a good idea to speak with a business attorney. Doing so would allow the business to get a better understanding of the challenges that they are facing. The lawyer can explain all of the employer’s options and what the best method would be to resolve the issue as quickly and cheaply as possible.