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Labor Code 2810.5: preparing the notice to employee
The notice to employee connects hiring information with the pay arrangements payroll will use. Prepare it from the actual employer, compensation and insurance records, then keep a process for changes.
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General information, not legal or tax advice.
Determine coverage before the start date
The Wage Theft Protection Act added Labor Code 2810.5, effective January 1, 2012. DIR says the notice is due no later than the employee’s work start date. Private employers are covered unless an exception applies, including overtime-exempt employees and workers under a qualifying collective bargaining agreement; public employees are excepted. Confirm coverage with the appropriate adviser.
Sources: California DIR, Labor Commissioner's Office, Wage Theft Protection Act; California DIR, FAQs Notice to Employee (Labor Code 2810.5), Q2 and Q15
Assemble pay, employer and insurance information
DIR lists pay rates and their basis, overtime rates, allowances claimed toward minimum wage, the regular payday, employer names and contact details, and the workers’ compensation carrier’s contact information. Compare the notice with payroll setup so the rate description matches the approved pay arrangement. Check the current DIR template for any additional required fields.
Sources: California DIR, FAQs Notice to Employee (Labor Code 2810.5), Q2 and Q15
State known rates instead of generic multipliers
DIR says an overtime multiplier alone does not specify the overtime rate. Known rates may be shown as minimums subject to upward adjustment for commissions or bonuses. For public works, merely saying appropriate or variable prevailing wage is insufficient; include rates known or determinable when giving the notice, with later project rate changes on itemized wage statements.
Sources: California DIR, FAQs Notice to Employee (Labor Code 2810.5), Q2 and Q15
Deliver a complete notice the employee can retain
An employer can create its own form if it includes all required information, but the notice must stand alone rather than requiring the worker to piece information together. Electronic delivery is permitted if the worker can acknowledge receipt and print a copy. The receipt-acknowledgment section is optional, and the notice requirement cannot be waived.
Sources: California DIR, FAQs Notice to Employee (Labor Code 2810.5), Q2 and Q15
Route changes through the written-update process
DIR generally requires written notice of changes within seven calendar days unless all changes appear on a timely wage statement or another legally required writing within that period. A wage increase shown on the next pay stub does not require a new notice when it is the only change. Wage decreases can operate only prospectively. Keep the approval and effective date in the payroll file.
Sources: California DIR, FAQs Notice to Employee (Labor Code 2810.5), Q2 and Q15
Sources: determine coverage before the start date
Hiring files and public works reporting
Align hiring information with the payroll setup
Tidwell helps organize approved pay details and payroll records. Your employment adviser determines notice coverage and wording for unusual arrangements.