One of the criteria to be listed on the check stub is total hours worked. We have outside salespersons who do not keep time records. Do we have to list the total hours worked for these types of employees?
No, you do not have to list the total hours worked for outside salespersons who meet the definition in the Industrial Welfare Commission orders. See CalChamber’s HRCalifornia.com for more information about the outside salesperson exemption.
California Labor Code Section 226(a) lists nine categories of information that must be included on the itemized wage statement, also known as a check stub. One of those categories, 226(a)(2), requires an employer to show the total hours worked by the employee, except as provided in subdivision (j).
Subdivision (j) of Section 226 provides several exceptions to this rule:
(j) An itemized wage statement furnished by an employer pursuant to subdivision (a) shall not be required to show total hours worked by the employee if any of the following apply:
(1) The employee’s compensation is solely based on salary and the employee is exempt from payment of overtime under subdivision (a) of Section 515 or any applicable order of the Industrial Welfare Commission.
(2) The employee is exempt from the payment of minimum wage and overtime under any of the following:
(A) The exemption for persons employed in an executive, administrative, or professional capacity provided in any applicable order of the Industrial Welfare Commission.
(B) The exemption for outside salespersons provided in any applicable order of the Industrial Welfare Commission.
(C) The overtime exemption for computer software professionals paid on a salaried basis provided in Section 515.5.
(D) The exemption for individuals who are the parent, spouse, child, or legally adopted child of the employer provided in any applicable order of the Industrial Welfare Commission.
(E) The exemption for participants, director, and staff of a live-in alternative to incarceration rehabilitation program with special focus on substance abusers provided in Section 8002 of the Penal Code.
(F) The exemption for any crew member employed on a commercial passenger fishing boat licensed pursuant to Article 5 (commencing with Section 7920) of Chapter 1 of Part 3 of Division 6 of the Fish and Game Code provided in any applicable order of the Industrial Welfare Commission.
(G) The exemption for any individual participating in a national service program provided in any applicable order of the Industrial Welfare Commission.
Before using an exception, carefully review the definitions with legal counsel to be certain the exception applies to your business.
The Labor Law Helpline is a service to California Chamber of Commerce preferred and executive members. For expert explanations of labor laws and Cal/OSHA regulations, not legal counsel for specific situations, call (800) 348-2262 or submit your question at www.hrcalifornia.com.