California Pay Stub: What It Must Include (2024 Update)

California Wage Statement Requirements

According to SCLG, under California Labor Code § 226, employers must provide employees with itemized wage statements every pay period [1].

These statements must include:

• Gross and net wages earned.
• Total hours worked and hourly rates (for non-exempt employees).
• Deductions and the pay period date range.
• The number of piece-rate units earned and piece rates, if applicable.
• The employee’s name and last four digits of their Social Security number.
• The employer’s name and address.
• The amount of paid sick leave available (per Labor Code 246(i)).

Employers must give employees these wage statements every two weeks or on each payday, and they must keep them for three years

Understanding Wage Statements and Pay Stub Regulations for Specific Employees

According to WorkLawyers, certain employees are subject to unique rules concerning their wage statements or pay stubs. These exceptions are designed to account for the specific manner in which these employees are compensated or the nature of their employment relationships [2].

Piece-Rate Employees
Piece-rate employees are compensated based on the number of jobs completed, tasks performed, or pieces produced. When employees are paid on a piece-rate basis, their pay stubs must include the following details:

• The number of piece-rate units earned
• The applicable piece rate

In addition to their piece-rate compensation, these employees must also be paid separately for time spent on activities unrelated to their primary production duties. Specifically, they are entitled to at least the minimum wage for:

• Rest and recovery periods
• Nonproductive time

Nonproductive time refers to the period when piece-rate employees are under the employer’s control but are engaged in activities not directly related to their primary tasks. The hourly rate for these periods is the higher of the employee’s average hourly rate or the applicable minimum wage. This compensation is provided in addition to the piece-rate earnings.

Piece-rate employees must be paid extra for their 10-minute rest breaks and any nonproductive time. Additionally, if they miss a required meal or rest break, they are entitled to one extra hour of pay per workday for each missed rest or meal period.

Due to the varying rates of compensation, piece-rate employees must receive supplemental information on their pay stubs, including:

• Total hours spent in compensable rest and recovery periods
• Total hours of compensable nonproductive time for the pay period
• The rate at which these hours are paid
• Gross wages paid for rest periods, recovery periods, and nonproductive time as required by California law

The amount of nonproductive time can be determined through actual work records or reasonable estimates by the employer.

Temporary Service Employers

Temporary service employers, commonly known as temp agencies, contract with clients to provide workers for specific services.

Because these employees often work at different rates for various assignments, temporary service employers must include on the pay stub:

• The rate of pay for each assignment
• Total hours worked for each assignment

Home Services Exception

California’s wage statement laws generally do not apply to individuals employed by homeowners or occupants to perform personal services related to the home’s maintenance or use. These services must be unrelated to the homeowner’s or occupant’s business activities.

This “home services exception” covers individuals such as child caregivers and contractors hired for home repairs or remodeling, including plumbers, carpenters, roofers, and house painters. These workers, under California law, may be considered employees rather than independent contractors of the property owner or occupant who hired them.

Related Articles:

• Employment Wages & Hour Dispute Lawsuits
• Is California a Right-to-Work State?
• What Is an Adverse Employment Action?

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References:

1. https://www.shouselaw.com/ca/labor/labor-code-226/
2. https://www.worklawyers.com/wage-statement-pay-stub-law-california/#additional-rules-for-certain-types-of-employees