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Making Back-Wage Payments to the Unpaid Wages Fund

Bryan Little, Farm Employers Labor Service
December 9, 2016

FELS has received a number of questions concerning how to make a payment to the DIR Unpaid Wages Fund.  Payments can be made directly to the Fund for employees who cannot located to make back-wage payments for inadvertently under- or uncompensated rest and recover periods as permitted by Labor Code 226.2 (also known at AB 1513).  These payments afford the employer a “safe harbor” from lawsuit liability.

Here are instructions from the Department of Industrial Relations’ website for making such payments:

Instructions for making payments to the Unpaid Wage Fund:

Required items:

1. A statement in both printed and electronic format that lists the following information for each employee covered by the payment:

Name
Net amount payable to the employee after withholding*
If available, employee's last known address and social security number

2. One check for the total of all amounts being paid into the Fund at that time for employees who could not be located.  Make this check payable to: INDUSTRIAL RELATIONS UNPAID WAGE FUND.

3. A second check equal to ½ of 1% (.005) of the amount in item 2 or $2500.00, whichever is less.  Make this check payable to: LABOR ENFORCEMENT AND COMPLIANCE FUND.

4. Please send all of these items by no later than December 15, 2016, to the following address:

Department of Industrial Relations
Division of Labor Standards Enforcement
CASHIERING UNIT
2031 Howe Avenue, Suite 100
Sacramento, CA 95825

DIR recommends sending everything by certified mail, return receipt requested, in order to confirm timely delivery and receipt.

You can view the DIR Frequently-Asked-Questions at this link.  You can view FELS' resources on Labor Code 226.2/AB 1513 compliance at this link.