AB 1744: Was This Really Necessary?

11.2012
Employment Law Reporter, Ervin Cohen & Jessup LLP

Adding to the plethora of employer obligations already associated with wage statements (see “New Law Lacks Common Sense” in this issue), Assembly Bill 1744 requires temporary services employers to disclose on the itemized payroll statement the main address of the legal entities that secured the services of the employer and the total hours worked for each legal entity. In addition, the rate of pay for each assignment must be disclosed. The bill specifies that the additional information may be furnished as an attachment to the wage statement. AB 1744 amends both Labor Code Sections 226 and 2810.5. The additional requirements become effective on July 1, 2013.

AB 1744 was purportedly designed to address abuses by temporary employers and, according to the bill’s sponsor, “addresses the needs of workers who may visit several job sites and earn several hourly wages during the course of a single pay period.” It is unclear, however, how the new requirements will address the problem more effectively than existing laws, the very laws that were enacted to directly prohibit the alleged underlying violations, whatever they may be. Further, Labor Code Section 226 already sets forth numerous requirements regarding the disclosure of wages, hours worked, deductions, etc. Put simply, it is hard to see any real need for this new legislation which only results in an additional burden for California employers.

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