A California Chamber of Commerce-supported bill that clarifies the employees for whom an employer must track hours worked and record those hours on an itemized wage statement has been signed into law.
AB 2535 (Ridley-Thomas; D-Los Angeles) clarifies existing law that only nonexempt employees and others who are paid according to hours worked are required to have their hours tracked and logged on an itemized wage statement. The clarification will preclude frivolous and costly litigation with regard to hours worked by exempt employees.
The long-standing industry practice and interpretation of California law has been that an employer needs to track the hours of only nonexempt employees, not employees who are exempt under the Industrial Welfare Commission Wage Orders or Labor Code.
AB 2535 confirms this understanding to eliminate any ambiguity on the issue.
