California AB 1513, which went into effect on January 1, 2016, added section 226.2 to the California Labor Code. The statute establishes standards for compensating “piece-rate” employees for rest and recovery periods and other nonproductive time going forward from the effective date of the statute. Labor Code section 226.2 also establishes a process for employers to make payments to employees for previously uncompensated or under-compensated rest and recovery periods, and nonproductive time, for the period July 1, 2012 to December 31, 2015. Participation in the process creates an “affirmative defense” for certain claims that may be pending against the employer in existing litigation, or that might be asserted in future litigation, with respect to the time period prior to January 1, 2016. Employers that timely notified the California Department of Industrial Relations of their intent to participate in the affirmative defense provisions have until December 15, 2016 to make payments to employees. Miller Kaplan Arase LLP has reached out to the California Employer Development Department on behalf of claims administration firms that are assisting employers with AB 1513 affirmative defense payments to implement compliance processes for employers with common employees.
If you require assistance with tax compliance issues arising out of the implementation of AB 1513 affirmative defense payments, please reach out to Nicholas Sanchez or Julia Damasco.
We highly recommend you confer with your Miller Kaplan advisor to understand your specific situation and how this impacts you.