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Notification Deadline for AB 1513 Piece Rate Safe Harbor is July 1, 2016

Effective January 1, 2016, AB 1513 set minimum standards for piece-rate workers' compensation during rest breaks and recovery time, as well as any other non-productive time required by the employer that is not income generating, such as meetings, trainings, set up time, etc. Within this bill, the California Legislature created a safe harbor for employers that did not compensate piece-rate employees following the Bluford and Gonzales decisions of 2013.

The deadline for California employers to file notice with the California DLSE that an employer is electing to participate in the safe harbor is July 1, 2016. There are two safe harbor options created in AB 1513. Option one dictates that employers must pay wages for all uncompensated nonproductive time, rest breaks, and recovery periods from July 1, 2012 through December 31, 2015, as well as 10 percent annual interest. Option two requires employers to pay a flat 4% of their employee's gross earnings for the same time period as option one. These payments must be completed by December 15, 2016.

Again, the deadline to file a notice with the DLSE regarding the safe harbor provision is July 1, 2016. Here is a link to notice from that is due July 1, 2016.

https://www.dir.ca.gov/pieceratebackpayelection/piecerate.asp

If you have any questions or need assistance regarding AB 1513 or any other employment and labor law matters, please contact Sagaser, Watkins & Wieland PC at (559) 421-7000 or (661) 616-1360 for more information. For more information on AB 1513 see http://www.sagaserlaw.com/blog/2015/11/ab-1513---new-requirements-for-employers-who-pay-piece-rate-compensation.shtml

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