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socrateaser, Lawyer
Category: Employment Law
Satisfied Customers: 37837
Experience:  Retired (mostly)
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CA Labor Code 226(a) says, as it relates to pay stub requirements,

Resolved Question:

CA Labor Code 226(a) says, as it relates to pay stub requirements, says that "(9) all applicable hourly rates in effect during the pay period and the corresponding number of hours worked at each hourly rate" must appear on the pay stub.

Background for question:

We are an HVAC/Plumbing company that pays tech's commission based on service volume (sales). We track their hours and report the hours on the stub, but there is no hourly rate associated with those hours. Commissions are reported on a separate line item.

All other hourly rates...We do list the applicable rate that the employee is paid at for those hours. PTO, Holiday, California Meal Penalty, etc...all paid at the 'regular rate of pay'. Overtime paid at the 1/2 rate. Doubletime is paid at the 1X rate (premium portion).


Are we in violation due to not showing an hourly rate for the 'regular hours' even though there isn't any 'regular pay'? Should we show a rate of $0? Should we need to waive our magic wands and someone come up with a way to match regular hours to the commission dollars?
Submitted: 5 years ago.
Category: Employment Law
Expert:  socrateaser replied 5 years ago.
The employee's hourly wage, if the aggregate of multiple payment agreements, must be calculated as 1/40th of the employee's total weekly pay (including hours and commissions). This is known as the "regular rate," and it is that rate which would ordinarily appear on an hours line item.

See DLSE 2002 Enforcement Policies & Interpretations Manual (Revised), §§ 49.1-; §§ 48.1.6-48.1.8; DLSE Opinion Letters 2000.09.29 & 1991.01.07-1.

I can see that this could create the illusion of your owing more than what is actually paid, because you have a potential hourly multiple on one line item, plus a commission on another. The only thing I could suggest would be to provide some notation that the calculation is merely intended to provide the employee's "regular rate" of pay, and not to suggest that an additional amount of pay is due.

Hope this helps.

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