There are consequences for failing to keep payroll records required by Section 7 of each IWC Wage Order. An employee’s records must be available for inspection by the employee upon reasonable request.
In addition to any other civil penalties provided by law, any employer or any person acting on behalf of the employer who violates or causes to be violated the provisions of this order, are subject to the following.
Wage Order violations:
- Initial violation — $50 for each underpaid employee for each pay period during which the employee was underpaid in addition to the amount that is sufficient to recover unpaid wages.
- Subsequent violations — $100 for each underpaid employee for each pay period during which the employee was underpaid in addition to an amount that is sufficient to recover unpaid wages.
- The affected employee shall receive payment of all wages recovered.
Failure to provide wage deduction statements or records:
- Initial violation — $250 per employee per violation
- Subsequent violations — $1,000 per employee for each violation
The Labor Commissioner can also issue citations pursuant to California Labor Code sections 1197.1 and 1199 for nonpayment of wages for overtime work.
An employer cannot require an employee, as a condition of being paid, to execute a statement of hours worked during a pay period that the employer knows to be false. Employers who violate this law are guilty of a misdemeanor.
Employers cannot prohibit employees from maintaining a personal record of hours worked or, if the employee is paid on a piece-rate basis, piece-rate units earned.