Employer's Report: Employers Report Post

Posted by Giuliana Gabriel, J.D., HR Compliance Director on March 1, 2024

Tags: Employers Report

As a reminder, fast food chains must prepare for the new minimum wage of $20/hour, effective April 1, 2024. That is just one month away!

The new law (AB 1228) applies to all limited-service restaurants that are part of chains with over 60 locations nationally. Limited-service restaurants are those primarily engaged in providing food and beverages for immediate consumption on or off premises, where patrons generally order or select items and pay before consuming, with limited or no table service. A limited-service restaurant includes, but is not limited to, an establishment with the North American Industry Classification System Code 722513. There are exceptions for qualifying bakeries and grocery stores.

Read more about AB 1228 in our previous blog article.

If This Change Applies to You

Make sure you take the following steps to ensure compliance:

• Update your payroll system
• Notify your affected employees. Employers may do this by updating the Wage Theft Form, and retaining a copy for the employee’s personnel file
• Ensure your wage statements reflect the correct pay rates, including overtime rates
• If the change impacts your pay scales, including for job postings, be sure to update those as well
• Consider any personnel restructuring and/or shift adjustments as needed

Unanswered Questions

Unfortunately, the bill leaves some important, unanswered questions. If you are unsure of coverage, we recommend erring on the side of caution, or consulting legal counsel. For example, AB 1228 is silent on:

• What is meant by the term primarily engaged?
• For restaurants that operate within a different business (e.g., a Starbucks inside a Target, or a Subway inside a gas station), how does the fast food minimum wage apply to workers at those businesses?
• For covered employers, is the exempt salary threshold two times the fast food minimum wage ($83,200/year), or two times the regular State minimum wage ($66,560/year)?

Exemptions Ahead?

In a new proposed bill, AB 610, there would be carve outs for certain businesses, particularly those that operate within other larger spaces, including restaurants in airports, hotels, event centers, theme parks, museums, gambling establishments, and other locations. This bill has an urgency clause, meaning it would take effect immediately if enacted. Stay tuned.

Posted by Vicki Simpson, HR Business Partner on March 1, 2024

Tags: Employers Report

Question: I have a new sales position open in our office. Are there any legal requirements around the information that I have to include in a job description?

Answer: There are no legal requirements for what to include in a job description. However, it is advisable that job descriptions are as specific as possible.

A well-written job description is key in the staffing process. It aids in identifying candidates who are qualified to perform the essential functions of the position and who have the education and experience required.

• For the employee, the job description defines what is expected of him or her. A well-written job description is also an important tool in employee retention, performance management, and training. It provides both the employee and supervisor with clear and documented job expectations.
• For the employer, the job description provides quantitative standards against which objective performance appraisals can be conducted and sound decisions can be made regarding retention, training, promotions, and changes in compensation.
• For both the employee and the employer, the job description defines the essential job functions that are necessary to the job, with or without reasonable accommodation.

For employers with 5 or more employees, your job description must comply with the California Fair Employment and Housing Act (FEHA). If you have 15 or more employees, your job description must be compliant with the federal Americans with Disabilities Act (ADA) which plays a key role in determining an individual’s ability to physically perform the essential functions of the position. It can also be the basis for objective consideration of reasonable accommodations.

Creating a sound job description takes some work and will typically involve a job analysis. It is a good idea for employers to review existing job descriptions to ensure accuracy regularly.

CEA is here to help! CEA University has a terrific job description builder in the Compliance Campus section.

CEA members can also download our Job Description Toolkit on the Employer Toolkits page, and as always, your HR advisors are standing by Monday – Friday 8am-5pm to answer your questions.

Posted by Margaret Oglesby, Compensation Consultant, Cascade Employers Association on March 1, 2024

Tags: Employers Report

As of January 1, 2024, seven states, including Maryland, New Jersey, Washington D.C., Massachusetts, Connecticut, Washington, California, and most of New York now have a minimum wage of $15 or more. Compare this to just four states and Washington DC in 2023.

There are also big sector-specific wage hikes forthcoming in some states. Starting in April, California’s fast-food employers must compensate their employees at least $20 an hour and on June 1,2024, health care workers will earn between $18.00 – $23.00 an hour, depending on the role, size and type of employer.

Understandably, organizations face challenges when these mandated wage increases occur. Cost-effectiveness can become difficult, pay compression can impact pay equity, and employers who once had higher starting wages may suddenly lose their competitive edge. As employers attempt to remain compliant and competitive, success relies on creating or maintaining a strong compensation philosophy and strategy.

The strategies below can assist you with compensation management:

Organizational Design Review

Analyze your organization’s structure. This process can lead to revised or enhanced roles and this aids in the identification of gaps, overlapping roles and/or the creation of career paths. This may help identify operational efficiencies to better leverage your current workforce and may offset some of the costs associated with mandated higher salaries.

Create or Update Job Descriptions

Job descriptions act as the cornerstone for employee performance and expectations in addition to justifying exemption status and compensation. After analyzing job duties you may be able to adjust your roles to help counteract minimum wage increases by restructuring roles.

Review or Establish a Salary Structure. Ensure Pay Equity

Review or establish a current compensation salary structure. Ensure roles are competitive in the market and employees are compensated in an equitable fashion against their counterparts by conducting a pay equity analysis. Often minimum wage increases result in pay compression within the salary structure. It is important to see how these wage increases impact other relatable jobs and career hierarchies. Modeling out and analyzing how to integrate minimum wage increases into your full compensation structure is imperative. It is also important to look at these increases through a pay equity lens to see how these increases impact other comparable roles.

Are you struggling with any of these compensation issues? CEA and our sister association Cascade have a Compensation Team ready to assist you with CEA member discounts. Email us at ceainfo@employers.org for more info.

Posted by Giuliana Gabriel, J.D., HR Compliance Director on March 1, 2024

Tags: Employers Report

As many California businesses are now aware, almost all employers will be required to maintain a written Workplace Violence Prevention Plan (WVPP) starting July 1, 2024. Employers still have many questions about how they should execute their WVPP because, as of yet, Cal/OSHA has not published a sample template for general industry employers. Cal/OSHA representatives have said that they will have a website with FAQs, templates, and resources for employers by spring. (Note: There is a Sample WVPP for Healthcare employers, who have already been required to maintain one for several years now.)

For general industry employers, we recommend waiting for Cal/OSHA’s general industry resources or working with a safety expert or legal counsel to draft your WVPP. Hopefully, Cal/OSHA will publish their resources on their website well before the July deadline approaches.

For CEA members, we have resources available to get you started! Download our WVPP Fact Sheet for detailed information on the requirements, as well as a Sample Violent Incident Log on our HR Forms page. We will keep you informed of any updates on our blog, including if Cal/OSHA releases a sample WVPP template! Get our blog sent right to your inbox by signing up for our Weekly Updates.

Below is an Overview of Key Requirements:

• Written WVPP: The WVPP must be in writing and available to employees and authorized employee representatives. It must include specific information and categories, similar to an IIPP.
• Employee Training: The employer must provide employees training on the WVPP when is first established, upon identification of new hazards/plan changes, as well as on an annual basis. The required employee training must be customized to the specific workplace and job duties. The trainer must be someone that is knowledgeable in the employer’s specific WVPP. It must be interactive and allow for employee questions and answers. It must cover specific definitions and content.
• Violent Incident Log: Every time there is a workplace violent incident, the employer must investigate it, engage in hazard correction/update the WVPP, and record the incident on the violent incident log with specific required information, excluding personal identifying information. The log must be made available to employees and their representatives, upon request and without cost, for examination and copying within 15 calendar days of a request.
• Record-Keeping Requirements: Violent incident logs and other WVPP records must be maintained for a minimum of five years. Employee training records must be maintained for a minimum of one year.

Questions? CEA members may call our HR experts at 800.399.5331.

Posted by Giuliana Gabriel, J.D., HR Compliance Director on March 1, 2024

Tags: Employers Report

Many California employers are aware that the Fair Employment and Housing Act (FEHA) requires a timely, thorough and objective workplace investigation when there is an allegation of discrimination, harassment, or retaliation. Now, California employers must prepare for a new workplace investigation requirement when there is an allegation of workplace violence or a threat of violence. This is part of SB 553’s requirement for almost all employers to implement an effective, written Workplace Violence Prevention Plan (WVPP) by July 1, 2024.

SB 553 has a number of requirements that even safety experts are just beginning to grapple with, including annual employee training, hazard assessment and correction, record retention, and employee (and union) participation in the plan, just to name a few. CEA members can learn more about these requirements by downloading our Workplace Violence Prevention Plan Fact Sheet on the HR forms page. The new investigation requirement is just one component of a comprehensive WVPP. However, it is an important one that employers must be prepared to handle in the coming year. Below are some key highlights.

SB 553’s Investigation Requirement

For each workplace violence incident and/or employee concern of workplace violence, employers must investigate and record specific information on a violent incident log. In conducting an investigation, employers should solicit information from employees who experienced the workplace violence, obtain witness statements, and assess any other relevant evidence or documentation. For each incident, the log must include detailed information. CEA members can download our Violent Incident Log Sample on our HR forms page.

This log must be maintained for a minimum of five years. Employers are instructed to omit personal identifying information sufficient to allow identification of any person involved in a violent incident from the log. This is because the log must be made available to all employees and their representatives upon request.

Examples of Violent Incidents

Employers should be mindful that the definition of workplace violence is broad. Examples include:

• Physical attack without a weapon (e.g., biting, scratching, hair pulling, spitting, etc.)
• Attack with a weapon or object (e.g., a knife or firearm)
• Threat of physical force or threat of the use of a weapon or other object
• Sexual assault or threat, including unwanted verbal or physical contact
• Animal attack

Some examples that may come up in the workplace include threats and acts not only from coworkers, but from disgruntled customers, former employees, or an employee’s family member or significant other (this often occurs when intimate partner violence trickles into the workplace). There may also be random acts or threats by strangers with no connection to the workplace, including when you send employees to different locations or job sites. Employers should also proactively prepare for threats of violence in connection with retail theft and active shooter situations, which unfortunately have become increasingly common. Moreover, whenever an employer receives a complaint of harassment or bullying, they should assess whether it involves sexual harassment for purposes of recording on the violent incident log.

Steps to Investigate Workplace Violence

While SB 553 does not outline specific employer requirements beyond investigating, recording on the log, and correcting workplace violent hazards, employers should likely treat workplace violence investigations similarly to FEHA harassment investigations. This includes conducting the investigation promptly and objectively, documenting findings, determining what more likely than not occurred, maintaining confidentiality to the extent possible, assessing whether there were any policy violations, and engaging in prompt corrective action, as appropriate.

CEA is available to assist employers with workplace investigations and provide peace of mind. Contact us at 800.399.5331.

Posted by Giuliana Gabriel, J.D., HR Compliance Director on March 1, 2024

Tags: Employers Report

It may surprise many California employers to learn there is an exception to minimum wage, overtime, and meal/rest requirements for certain salespeople. Yes, you read that correctly. While this may seem upside down, for those properly classified as an outside salesperson, the employer doesn’t have to worry about minimum wage and other requirements. Instead, the employee just earns their commission per your agreement. However, it is important to proceed with caution, because this is a very narrow exemption. Moreover, there is a separate category for inside sales subject to their own rules.

So, let’s clear up the sales exemptions:

Outside Sales

To be properly classified as an outside salesperson the employee must be 18 years or older, and customarily and regularly work more than half of their working time away from the employer’s place of business selling items or obtaining orders/contracts for products, services, or use of facilities. (See 8 CCR Section 11010(2)(J).)

The place of business is the employee’s regular place of work. Many employers mess this rule up when they assume the exemption automatically applies to a remote sales worker. That is not the case. For an employee who works from home, their residence would be the place of business. In that case, they would have to spend more than half of their time engaged in selling items or obtaining orders away from their residence-not at home behind a computer screen.

The Labor Commissioner has increased scrutiny on outside salespeople since the rise of the internet and social media. The employee must actually be away from the regular work site at least 51% of the time to meet this exemption. However, for those who do have this arrangement, it can be a huge costs savings for the company!

Inside Sales

If you have an “inside salesperson” that works at the employer’s place of business (or remotely at home), you may still be able to avoid paying overtime if they satisfy certain requirements. However, these employees must still follow all other requirements for non-exempt employees, including clocking in and out, taking meal and rest breaks, etc. (unless, of course, you can classify the employee as exempt under the administrative, executive, or professional exemptions). As a non-exempt employee, you should always ensure they earning at least minimum wage for all hours worked.

And, while you may pay these employees in commissions, you must still ensure they are being compensated for their rest breaks and any non-productive time, so it is a good idea to establish a base hourly rate for all hours worked, in addition to their commissions.

Here is How the Overtime Exemption Works:

Under Wage Orders 4 (Professional, Technical, Clerical, Mechanical and Similar Occupations) and 7 (Mercantile Industry), inside salespeople are exempt from overtime if they earn at least 1.5 times the California minimum wage (1.5 X $16.00/hour for 2024 = $24/hour) for each hour they work, and at least 50% of their weekly income must come from commissions.

Step 1: In each workweek, the employee must earn more than 1.5 times the minimum wage for all hours worked. This pay may be in the form of wages, salary, commissions, or a guaranteed draw. You cannot count commission earnings from another workweek (i.e., you cannot allocate a large commission payment at the end of the month to previous workweeks in the month). If an inside salesperson has been paid at least 1.5 times the minimum wage for the workweek, proceed to step 2. If not, they are owed overtime.

Step 2: The second part of the test requires that more than half of the employee’s compensation is in the form of commissions (i.e., selling) for each workweek. If the test is satisfied, the employee is not owed overtime. If not, they are owed overtime.

What About Sales Employees Who Don’t Fit These Definitions?

For example, if you have a sales clerk on staff but they aren’t earning enough in commissions to meet the inside sales exemption, you should start with the assumption that they are treated as any other non-exempt employee. Again, this means they should be clocking in and out, taking meal and rest breaks, and paid overtime. While it is perfectly acceptable to pay them additional commissions per your agreement, remember that commissions affect the employee’s regular rate of pay for calculating overtime!

CEA members can refer to Salesperson Exemption Fact Sheet on our HR forms page for additional assistance, or give us a call at 800-399-5331 with your questions.

Posted by Kim Gusman, President & CEO on March 1, 2024

Tags: Employers Report

Can you imagine telling your employees how much they need to weigh, and then making them step onto a scale each month, in order to keep their job? How about requiring your employees to retire at a certain age or remain single and childless if they want to remain employed? Not so long ago these crazy scenarios were not only acceptable, but legal in the workplace.

I often recommend books to other leaders and HR professionals, but this month I’m recommending that you watch a film that not only moved and educated me, but that left me with my jaw on the floor. Fly With Me tells the story of the pioneering women who became flight attendants at a time when single women were unable to order a drink, eat alone in a restaurant or own a credit card. In the 1930s, becoming a “stewardess” offered opportunities for travel, adventure and independence, but it also required incredible conformity to ridiculous rules.

Today, businesses follow Title VII of the Civil Right Act of 1964, which protects employees and job applicants from employment discrimination based on race, color, religion, sex and national origin, but prior to this employees had no job protection. Fly With Me does a fabulous job of telling the origin story of many of the rules we have in the workplace today. The film also has great interviews with the women who were on the frontlines of the battle to assert gender equality and transform the workplace. If you want a great history lesson along with some amazing film footage, I highly recommend you check out Fly With Me.

We’ve come a long way when it comes to protections in the workplace-here’s to you and your continued efforts at creating great cultures!

Posted by California Employers Association on February 1, 2024

Tags: Employers Report

CEA is launching new offerings you won’t want to miss. Upskill your workforce with our new four week virtual training series, Elevate Your Expertise: An Upskilling Training Series on March 5. Join us at our new CEA offices for an onsite training, 2024 Labor Law Update Sponsored by Central Valley Community Bank on February 15, or spend the afternoon with us on March 28 for our first Workplace Investigation Certification Training.

Posted by [Add the Author Here] on February 1, 2024

Tags: Employers Report

This month we’d like to introduce you to two more California Employers Association team members that work to keep you informed of what’s happening at CEA! Meet Kelley Downey, Operations Assistant, and Stephanie Neely, Marketing Director.

Kelley Downey. Operations Assistant, CEA

1. When you are at work, how do you motivate yourself?

By being someone CEA can count on. To have a reputation for completing tasks accurately and in a timely manner.

2. What was your first job?

Cashier at Taco Bell.

3. Where did you grow up?

Modesto, California.

4. What is your favorite quote, motto, or words you live by?

Family dinners are sacred.

5. What was your favorite class in college?

Art History

Stephanie Neely, Marketing Director, CEA

1. What has been your favorite project at CEA so far?

So many! The website refresh was fun, creating specialized campaigns, and supporting our sister organizations are all really exciting.

2. What advice would you give to someone who is just starting their career?

Don’t be shy about telling your boss lofty goals, the good ones will help you reach them.

3. What was your first job?

Waitress at Happy Joe’s Pizza Restaurant

4. Where did you grow up?

Dallas, Texas. Bring on the BBQ!

5. What is your favorite quote, motto, or words you live by?

“Something must be in retrograde” whenever things take an unexpected turn.

Posted by Jessica Rivera MBA, PHR, SHRM-CP, Training & Coaching Director on February 1, 2024

Tags: Employers Report

“An ounce of prevention is worth a pound of cure.” We’ve all heard this quote at one time or another, but how might it work in business in terms and our valued employees?

As we reflect on 2023 results and plan for 2024, let’s take a look at the impact of investing in your employees’ professional development and why this is a critical element in your company’s strategy for success.

The saying “an ounce of prevention is worth a pound of cure” implies that taking proactive measures to prevent issues now is more effective than dealing with the adverse consequences later. For example, in 2017 Equifax experienced a massive data breach, exposing the personal information of approximately 147 million people. Settlement costs required Equifax to pay $1.38 billion to resolve consumer claims. It was later determined that poor data governance practices made the breach possible and by 2022, Equifax had invested an additional $1.6 billion to improve security and technology. Ouch!

CEA is often asked to assist with internal workplace investigations. In these situations, our HR Advisors assist your company in determining the facts surrounding a specific incident or concern. Whether it’s employee misconduct, harassment complaints or policy violations, the investigation process helps companies maintain a compliant and respectful workplace. We find that many workplace complaints and conflicts were avoidable, if only employees had received training in communications, conflict resolution and problem solving.

Investing in your employees prevents all types of issues including a lack of motivation, disconnection, and lackluster teamwork. Investing in your employees increases employee engagement and allows for open communication, feedback, and trust in the company. When companies invest in tools, technology, and training they are essentially upskilling their employees. These employees are now better equipped to handle evolving job requirements and new situations in the workplace.

Providing opportunities for training, career growth, while recognizing and rewarding performance keep talented employees engaged so they’re less likely to seek opportunities elsewhere.

One of the Forbes report’s most revealing findings was that 76% of employees say they’re more likely to stay with a company that offers continuous training.

When you create a work environment where employees feel valued and supported, your company can minimize the risk of losing valuable talent and avoid the high costs of turnover. Register your team now for our upskilling course called Elevate Your Expertise. This virtual certification series starts on March 5, 2024.

Upskilling and investing in an employee also has the added benefit of improving their overall wellbeing, preventing burnout and stress-related issues. Unlock your employees’ potential and elevate their skills to ensure a successful 2024!

Posted by Giuliana Gabriel, J.D., HR Compliance Director on February 1, 2024

Tags: Employers Report

It may surprise many California employers to learn there is an exception to minimum wage, overtime, and meal/rest requirements for certain salespeople. Yes, you read that correctly. While this may seem “upside down,” for those properly classified as an outside salesperson, the employer doesn’t have to worry about minimum wage and other requirements. Instead, the employee just earns their commission per your agreement. However, it is important to proceed with caution, because this is a very narrow exemption. Moreover, there is a separate category for inside sales subject to their own rules.

So, let’s clear up the sales exemptions:

Outside Sales:

To be properly classified as an “outside salesperson” the employee must be 18 years or older, and customarily and regularly work more than half of their working time away from the employer’s place of business selling items or obtaining orders/contracts for products, services, or use of facilities. (See 8 CCR Section 11010(2)(J).)

The place of business is the employee’s regular place of work. Many employers mess this rule up when they assume the exemption automatically applies to a remote sales worker. That is not the case. For an employee who works from home, their residence would be the place of business. In that case, they would have to spend more than half of their time engaged in selling items or obtaining orders away from their residence-not at home behind a computer screen.

The Labor Commissioner has increased scrutiny on outside salespeople since the rise of the internet and social media. The employee must actually be away from the regular work site at least 51% of the time to meet this exemption. However, for those who do have this arrangement, it can be a huge costs savings for the company!

Inside Sales:

If you have an “inside salesperson” that works at the employer’s place of business (or remotely at home), you may still be able to avoid paying overtime if they satisfy certain requirements. However, these employees must still follow all other requirements for non-exempt employees, including clocking in and out, taking meal and rest breaks, etc. (unless, of course, you can classify the employee as exempt under the administrative, executive, or professional exemptions). As a non-exempt employee, you should always ensure they earning at least minimum wage for all hours worked.

And, while you may pay these employees in commissions, you must still ensure they are being compensated for their rest breaks and any non-productive time, so it is a good idea to establish a base hourly rate for all hours worked, in addition to their commissions.

Here is how the Overtime Exemption Works:

Under Wage Orders 4 (Professional, Technical, Clerical, Mechanical and Similar Occupations) and 7 (Mercantile Industry), inside salespeople are exempt from overtime if they earn at least 1.5 times the California minimum wage (1.5 X $16.00/hour for 2024 = $24/hour) for each hour they work, and at least 50% of their weekly income must come from commissions.

Step 1: In each workweek, the employee must earn more than 1.5 times the minimum wage for all hours worked. This pay may be in the form of wages, salary, commissions, or a guaranteed draw. You cannot count commission earnings from another workweek (i.e., you cannot allocate a large commission payment at the end of the month to previous workweeks in the month). If an inside salesperson has been paid at least 1.5 times the minimum wage for the workweek, proceed to step 2. If not, they are owed overtime.

Step 2: The second part of the test requires that more than half of the employee’s compensation is in the form of commissions (i.e., selling) for each workweek. If the test is satisfied, the employee is not owed overtime. If not, they are owed overtime.

What About Sales Employees who Don’t fit These Definitions?

For example, if you have a sales clerk on staff but they aren’t earning enough in commissions to meet the inside sales exemption, you should start with the assumption that they are treated as any other non-exempt employee. Again, this means they should be clocking in and out, taking meal and rest breaks, and paid overtime. While it is perfectly acceptable to pay them additional commissions per your agreement, remember that commissions affect the employee’s regular rate of pay for calculating overtime!

CEA members can refer to salesperson exemption fact sheet on our HR forms page for additional assistance, or give us a call at 800-399-5331 with your questions. And, remember, any employee earning a commission should execute a signed, written commissions agreement.

Posted by Giuliana Gabriel, J.D., HR Compliance Director on February 1, 2024

Tags: Employers Report

In the spirit of Valentine’s Day, we are covering the concept of “ghosting”-a popular term in dating culture, which refers to suddenly ending all communication and contact with someone.

Ghosting also occurs in the workplace when the company has not heard from an employee in a while. Whether the employee has decided to leave the workplace or perhaps they are dealing with a personal issue, employers are often unsure of how to handle this tricky situation. When an employee ghosts you, when can you process a separation from employment, and how do you get the employee their final check?

If You are Ghosted by an “Unrequited Love” (i.e., Unreachable Employee) Here’s What to Do:

• Make Initial Attempts to Reach Out: First, employers should initiate contact using various forms of communication, such as a phone call, texting, email, and even mailing correspondence. If you have a reason to believe the employee may be dealing with a medical issue or emergency, you may also refer to their emergency contacts in their personnel file. Make sure to document all communication attempts. This shows a reasonableness and good faith effort on the part of the employer, especially in the event the employee was dealing with an emergency or unforeseen circumstance.
• Review Your No Call, No Show Policy: If your communication attempts are unsuccessful, it may be time to review your no call, no show and/or attendance policies. Many companies implement these policies to account for these circumstances, and such policies often indicate when the absence is considered a voluntary resignation (e.g., “if the employee is a no call, no show for three consecutive workdays, it will be considered a voluntary resignation on the close of the third day”). Remember that you may need to make exceptions to the policy in the event you find out the employee was dealing with a medical issue protected under mandatory paid sick leave, CFRA/FMLA, the ADA/FEHA, or another leave of absence. Thus, it is our recommendation to make initial communication attempts before immediately processing it as a voluntary resignation.
• Notify Employee of Next Steps: Although not required, it is also a best practice to send a final warning correspondence, often in the form of a written letter, providing a deadline that the employee must return by to avoid processing a voluntary resignation. If the employee has already exceeded the number of absences allowed in your no call, no show policy, be sure to inform them in the letter as well. Again, attempt to send the correspondence through various communication channels (e.g., email/mail).
• Consider Processing Separation from Employment: If all attempts are unsuccessful, it may be time to process the employee’s voluntary resignation. You can follow up with a letter to the employee letting them know the date of their separation from employment, who they can contact with questions, and instructions for processing final paperwork, picking up their check, and arranging to gather personal belongings. Refer to our digital termination packet, available on our store for purchase.

Hold the Final Check: One big mistake that employers make is that they mail the final check to the employee they have not heard from. However, the California Labor Commissioner does not explicitly authorize employers to mail the final check unless they have received advanced authorization from a resigning employee. As such, if you mail the check, you risk waiting time penalties because you arguably sent it improperly and/or because you did not send it to the employee’s current address.

Instead, it is best to hold the final check at the employee’s worksite and let them know in your correspondence that their check is immediately available for pick up. To avoid a potential waiting-time-penalty claim, make sure the final check is ready by their last day of employment.

In the event the employee never comes to pick up their final check, it is a best practice to hold on to the check for about a year. After that, the employer may send the unclaimed wages to the Labor Commissioner. Learn more about that process on the California Division of Industrial Relations website. This is also  a good reminder to ensure you update employee contact information at least annually to ensure you have their correct phone number, email, and mailing address.