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DIR Releases Updated FAQ on Back-Wage Safe Harbor Payments

Bryan Little, FELS COO

November 9, 2016

unnamedThe Department of Industrial Relations has released revised and expanded Frequently-Asked-Questions (FAQ) on procedures for making back-wage payments to piece-rate employees who, inadvertently, may not have been properly compensated for rest periods and other non-productive time.

In light in inquiries received by FELS in recent days, employers contemplating back-wage payments to establish the litigation safe harbor created by AB 1513 should particularly direct their attention to the last section of the FAQ page titled “Calculating and making back payments to employees and former employees for purposes of the affirmative defense.”  It covers topics numerous topics about which employers contemplating back-wage pay may have questions:

  • What is the 4% option?
  • What is “accrued interest” and how is it calculated?
  • What is “due diligence?”
  • What should I do if a back-wage check has not been cashed or returned?
  • Is it possible to extend the December 15 deadline?
  • How does an employer make back wage payments to the Labor Commissioner for employees who cannot be located?

 

You can view DIR FAQ in its entirety here; you can visit FELS' resource page for employers on AB 1513 back-wage safe harbor payments here; and you can review FELS FAQ on AB 1513 and safe harbor payments here.