As California employers know, the state has very specific and strict wage and hour laws that relate to minimum wage, overtime, meal and rest periods, and wage statement requirements, to name a few. A violation of any of these laws, even if inadvertent, can expose an employer to penalties. The ramifications of these penalties can be monetarily significant, depending on the particular violation, the number of employees involved, and how far back the violation goes.
Employers that use labor contractors (such as staffing or temp agencies) will share with the contractors all civil legal responsibility and liability for their workers, starting January 1, 2015. This means that employers can be responsible for labor contractors' errors.