Recent Decisions Carve Out The Distinctions Between Frivolous And Successful Claims

Earlier this year, a case reinforced yet again the need for employers to pay close attention to the specific requirements of the California Labor Code – this time, the itemized wage statement requirement in Labor Code section 226(a). Heritage Residential Care, Inc. v. Division of Labor Standards Enforcement.

Heritage Residential Care operated seven residential care facilities and had 24 employees. Of these, 16 lacked social security numbers. Heritage elected to treat those 16 workers as independent contractors, withheld no taxes, and reported their earnings on a 1099-MISC form at the end of the year. Those employees were not given itemized wage statements each pay period as required by Section 226(a), but the eight employees who had social security numbers were provided with itemized wage statements.