AB 1513 Back Wage Safe Harbor Payment Deadline is 12/15/16

The Department of Industrial Relations (DIR) revised and expanded its Frequently Asked Questions (FAQ) on procedures for making back-wage payments to piece-rate employees who were not properly compensated for rest periods and other non-productive time. Those FAQ reiterated that an employer electing to “buy” the affirmative defense, or “safe harbor” available under AB 1513 must to do all of the following by Dec. 15:

  • Calculate and make payments to employees as soon as was reasonably feasible after having so notified DIR (notification to DIR was required by July 28);
  • Complete by Dec. 15 the payments to each affected employee or to the Labor Commissioner for any employee who can’t be located; and
  • Provide along with each payment a statement containing specified information about it.


The employer must use due diligence, including the use of people-locator services, to locate and pay former employees.  Along with payments made to the Labor Commissioner, the employer must pay, for deposit into the Labor Enforcement and Compliance Fund, an administrative fee equal to the lesser of 0.5% of those payments made or $2,500.

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Source: Farm Labor Employer Services  |  2016 © Copyright Payroll Masters

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