AB 2535 Expands Exceptions to Tracking Hours Requirements on Itemized Wage Statements

An itemized earnings statement showing earnings and deductions, on a desk with a calculator and pen.

Prompted, in part, by a 2015 federal court decision which held that employers must state the total hours worked by outside sales persons, Assembly Bill 2535 amends Labor Code section 226 to further clarify the categories of workers whose wage statements need not show total hours worked.  The amendment specifies that salaried persons exempt from overtime under statute (Labor Code section 515) or an order of the Industrial Welfare Commission need not have hours included on wage statements.  In addition, the amendment lists the following categories of workers for which employers do not have to report hours worked: exempt executive, administrative, or professional employees; exempt outside sales employees; salaried computer professionals under Labor Code section 515.5; parents, spouses, children, or legally-adopted children of the employer provided in applicable IWC orders; directors, staff, and participants of a live-in alternative to an incarceration rehabilitation program for substance abuse; exempt crew members of licensed commercial passenger fishing boats as specified by the IWC; and participants in national service programs as set for in any applicable IWC order.  AB 2535 takes effect on January 1, 2016.

 

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