California’s Department of Industrial Relations (DIR) regulates wages and hours of nonexempt employees. For an explanation of exempt and nonexempt status, see Exempt vs. Nonexempt Employees.
In 1913, DIR established an Industrial Welfare Commission (IWC), which created documents called Wage Orders. Wage Orders lay out the wages, hours and working conditions required in each kind of industry or occupation. Wage Orders are numbered 1 through 17 (with each number followed by the year in which the Wage Order was last amended and reprinted). For example, the manufacturing industry is covered by Wage Order 1-2001 and the transportation industry is covered by Wage Order 9-2001. Each employer must post the applicable Wage Order where employees can read it easily.
The IWC is currently not in operation, but the Division of Labor Standards Enforcement (DLSE), better known as the Labor Commissioner, continues to enforce the provisions of the Wage Orders. In addition, wage and hour changes may be made through the legislative process.
Each California employer must comply with one of the 17 Wage Orders, plus a Minimum Wage Order. Each of the Wage Orders is specific to the industry or occupations it covers. You can find a description of each of the 17 Wage Orders in Wage Order Listings. In each Wage Order, you can find regulations on the following topics:
You must understand which Wage Order covers your business to comply with wage and hour laws in California.
The Wage Orders contain different requirements for different occupations. During your review, pay special attention to some of the more obscure provisions of the Wage Orders. For example, many Wage Orders include a “suitable seating” requirement. For more information on this requirement, see “Suitable Seating” in Uniforms, Tools and Equipment Explained.
Once you determine the Wage Order for your business, review the entire Wage Order. Some employers have faced lawsuits over allegations of Wage Order violations pertaining to the employers’ failure to provide seats, not paying reporting time pay and not providing itemized wage statements.
All California employers must post the following items:
Make certain that you are posting the current version of the Wage Order. Download copies of these required orders. The Wage Orders - Business Occupation Listing can help you determine which Wage Order covers your organization.
1. Lab. Code sec. 1183(d)