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There are seventeen IWC wage orders. Every employer ought to determine which wage order or orders applies to its workers.

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March 2008

WAGE AND HOUR UPDATE


California Wage Order Checkup



By Christopher W. Olmsted, Esq.

Do you know which wage order applies to your company? If not, find out now. In California, wage orders are wage and hour regulations imposed by the California Industrial Welfare Commission (IWC).

There are seventeen IWC wage orders. Each wage order governs wages, hours and working conditions for particular private sector industries or occupations in California. Companies must determine which wage order applies. Overall, the seventeen wage orders contain similar provisions regarding exempt employees, minimum wage, overtime, and a variety of other wage and hour issues. Some of the wage orders have been tailored to suit a particular industry, thus leading to subtle and not so subtle differences among the seventeen wage orders.

The Division of Labor Standards Enforcement (DLSE) enforces the provisions of the wage orders. Violations can lead to enforcement actions, civil penalties, and compensation awards. Employees may also file lawsuits based on violations of the wage orders. It is therefore important to identify and comply with the wage order applicable to your company.

Below are some FAQs regarding the wage orders offered by the California Department of Industrial Relations.

Q:Which Industrial Welfare Commission (IWC) wage order covers my workplace?

Follow this link to an alphabetical index of businesses and occupations, and which IWC wage orders govern them. The address is http://www.dir.ca.gov/IndexOfBusinessAndOccupations.pdf.

Industry orders apply to all classifications of employees in an industry regardless of the work they do. For example: The manufacturing order (order 1) covers everyone in the manufacturing industry from production employees, to clerical staff and janitors.

The occupational orders -- 4, 14, 15, and 16 -- cover workers engaged in occupations not covered by the industrial orders.

Several major kinds of businesses -- including banks, public utilities, insurance companies, accountants and others employing office workers -- do not fall under one of the industry-wide orders. Their workers are covered by Wage Order 4, which includes professional, technical, clerical, mechanical and similar occupations.

The other occupational orders are Wage Order 14 (agricultural occupations), Wage Order 15 (household occupations) and Wage Order 16 (onsite occupations in the construction, drilling, logging and mining industries).

In some circumstances where employees are covered by an occupational order the employer may need to post more than one order. For example: A construction company (Wage Order 16) employing office help also needs Wage Order 4. An agricultural business (Wage Order 14) with an after-harvest operation will also need either order 8 or order 13.

Q:Do I need to post the minimum wage notice?

The Industrial Welfare Commission wage orders contain the minimum wage and are printed in English, so employers with English-speaking workers who have the IWC order posted as required need not download and post the minimum wage notice. Employers with workers who speak and read only Spanish must post the minimum wage notice in Spanish because the IWC orders are only available in English.

Q:Is it legal to download and post the Internet version of the IWC orders and other postings?

Yes. Posting the wage orders and other postings downloaded from the Internet is legal.

Q:Do I have to replace postings every year? How will I know when I need to replace them?

You only need to replace a posting when its content changes. Once established, the language of almost every required posting stays the same. The exception is the IWC wage orders, which are updated annually with an adjustment to the hourly wage required for computer professionals to be exempt.

The IWC orders posted on the Internet are indexed by date, so a periodic check of the list will let you know if you have the most current version. The web address for the orders is: http://www.dir.ca.gov/IWC/WageOrderIndustries.htm.

Q:Is it legal to put postings in a binder if I don’t have room to post materials?

Yes, but only under special circumstances. Some situations where this could be acceptable are a construction site where there is only an on-site trailer, or an agricultural site where the workplace is outdoors. If employers put postings in a binder, they must tell employees where the binder is located, have the binder available for employees, ensure employees have easy access to postings and don’t have to walk a long distance or ask to see the material.

More Legal Update articles.
Download entire March Legal Update in PDF format.


This article is intended as a brief overview of the law and are not intended to substitute as legal advice. Any questions or concerns regarding any statute or case law should be addressed to a licensed attorney. Copyright © 2008 by Barker Olmsted & Barnier, APLC. San Diego, California. All rights reserved.






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