Employer headaches with Payroll and incomplete pay stubs, San Jose, Santa Clara, Sunnyvale, CA

Hi Everyone!

Our in-house attorney, Judy Pearce, has some words of wisdom when it comes to pay stubs.  Pay stubs being incomplete or other issues associated with a disgruntled employee.  Read this:

Incomplete Pay Stubs: Lawsuits & Big Settlements Waiting to Happen?


Failure to include any one of the nine items California requires on every pay stub may not seem like a big deal to you or your employees — until a disgruntled employee visits his or her attorney.


Here is how it works:  You have an employee who has never complained about breaks or lunch. You terminate this employee. The employee, angry over the termination, decides to visit one of the many employee class action law firms.


One of the first things that the lawyer will want to see is a pay stub.  Mistakes in pay stubs often are a signal to the lawyer that other mistakes, say in breaks or lunch, are also going to yield fruit. All the claims can be wrapped up in an attorney general class action demand letter to you.


Two small construction firms had this very thing happen to them this past year. Make sure you are not the next victim by correcting your pay stubs. If you use a third party payroll provider, make sure they are providing all the required info. You are responsible for their actions.


Check your pay stubs: Use the chart below to check your pay stubs. Confused about whether your stubs are in compliance? Give me a call at 650.518.0327. I’ll be happy to walk you through what’s required.


The Nine Items California Law Requires on Every Pay Stub

Total gross wages employee earned during the pay period Total hours employee worked during the pay period Number of units and rate for any piece-work the employee performed
All deductions from employee’s pay Employee’s net pay Dates in the pay period
Name and last four digits of employee’s SSN Employer’s full name and address All hour rates in effect during the pay period and the number of hours employee worked at each rate

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