Can I Sign California Banking PDF

Can i industry sign banking california pdf simple

yeah hi friends it's harpreet singh from western singh law firm today i want to discuss about payment of wages in california what are those basic rules about payment of wages so basically when we talk about that topic we have to look at labor code uh 212 which is the governing law for like the method of payment either there are any deductions you can make or if you want to use some other convenient method of payment what are the rules surrounding those so when we talk about payment obviously nowadays i think there is a trend of uh sending direct deposit to employees checking account and that's also a much efficient way i think it's it's easy to manage the payroll reports and also it's easy to see if the employee has received it or not instead of printing paper checks but still i think in a uh i think very significant manner the paper checks are still used uh so so what so who decide about the method of payment means the payment needs to be in cash or in check so the law provides that if the employee wants the payment need to be done in cash then the employer need to provide that in cash obviously there are some requirement if it's reasonable or not based on the amount but if you're talking about six hundred thousand dollar uh then then you have to pay that in cash or you can also use a check but if you're talking about the cash on demand method you cannot have any deduction or any fees for such a demand from the employee's paycheck because obviously if if you are asking uh like kind of a fees for every such transaction which the employee has already earned so basically it sounds like you are penalizing employee for choosing that payment of method so so that's not allowed under the law so the next thing it's the the check or the account which you're using if suppose you are sending or printing a paper check with a pay stub and you're providing it to employee so whichever cheque you're using and the account which is attached to it your so-called business checking account so that account needs to have sufficient funds for at least 30 days and also in general i think you you know about you should not give any person a check or a money which is due from an account which doesn't have any money to uh uh at the first i think uh at the first start so so the main purpose is obviously to avoid a situation where you don't have the money in your account and an employee's pay is already earned and you're giving that and if it's intentional then obviously there is a lot of criminal consequences involved in that so it's so so whenever you're providing pay-per-check make sure that account have money and when we are talking about covert 19 i think this pandemic has hurt everyone every employer so probably you have issues with your cash flow but still make sure because california law is very strict and if you come across that situations you are basically violating a labor code the employee can file a complaint with labor commissioner's office or the enforcement division of the department of industrial relations so you can get into trouble there can be further investigations or if it's a continuing practice then further issues with that so just make sure whichever check you are providing the account has money at least for 30 days because an employee may not cash that check or maybe within a week or so some time means if you're talking about employees who are getting a good amount of money maybe they have misplaced the check somewhere and and and they they deposit the check after a couple of weeks and you don't have the money then there is an issue involved with that so the law provide at least you need to have 30 days uh the funds in your account when you're giving a check so the next thing about making payment to the employees when you talk about the payroll and choices which you can use to deliver that money those earned wages to the employee some of the employer when you are talking about like many employees who are mostly doesn't have bank accounts so direct deposit it's usually not kind of an option in that situation because the employee doesn't have a bank account especially if you're talking about low-wage earners uh in that situation sometimes employee employers think about some creative ways and also it has been more generalized nowadays so i want to talk about the prepaid debit card method so if your employee doesn't have a checking account or a bank account and you still want to have that provide the convenience to the employee and still it's more efficient on your side to manage your payroll and all the documentation involved with that so you can offer the option of having the paycheck directly sent to these uh prepaid debit cards and through that the employee can get their wages but the important thing is that in the employee need to have a choice means you cannot force that that policy on your employees and and you cannot have a policy that you will only pay through a particular prepaid card when your employee is asking okay means you can give me a check you cannot force employee for such an option even if employee choose such an option there are few things you have to make sure the policy or or the vendor you are using for such accounts for those prepaid kind of banking institutions that at least one withdrawal needs to be free of cost because when you talk about prepaid accounts there are some pieces involved because those are not like your usual lending institutions um not your usual banks where you can go at their branch there is no branch for most of these most of these vendors so they provide options that you can withdraw money from atms of certain banks or networks so in that situation the policy needs to be at least one free withdrawal once a month for for these paychecks because ultimately you are providing that option and as we have discussed early in this video that you cannot put a fee on use of any payment method on the employees wages so that's one of the requirement another requirement is that obviously we have discussed in previous video providing weight statement is important thing so you need to provide also the weight statement if you have uh providing these wages through a direct deposit method that doesn't waive the requirement of not providing a evade statement because usually when you have printed checks you are providing that weight statement that's usually the upper part of your whole paster means if you think about if people are still getting in that way so the upper part is weight statement which mentions about your deduction how you come uh the actual check amount what's the calculation behind it so you need to provide that in in this situation when you have a direct deposit usually employers use a thing called employee portals which have like all their weight statements and information about when a drug deposit was made in such a situation obviously i think that's more convenient for employers so there is no violation about not giving a wait statement and it's also easy to manage for employees they can just go there download a pdf file and just keep it uh on their computer on their phone so they have the record of that and employer have the records of that so it's more convenient but you you need to provide that option to uh it's it's obviously it's sorry not an option the option is about one at least one free withdrawal from this prepaid debit card or similar uh instruments like that and providing the way statement when you are sending these direct deposits so if suppose you don't follow the rules which we have mentioned about having the money in your account or or if you are getting the fees out of these wages for a choice of employees to have a paper check if you are intentionally doing it then there are criminal violations involved in this situation so it's considered as criminal offense it's a misdemeanor and there are also civil penalties involved with that and proving an intent it can be proved through various ways either you can prove if there is a conversation involved where employer already knew that it's a violation of the law through their hr department you have emails text message something like that or circumstantial evidence through the activity of the employer where employee mentioned them couple of times that this is the law i should get these wages without any deduction or i should get this even if i want to deposit a check after two weeks your account is showing you don't have money so still means you can show with those circumstantial evidence that the employer had knowledge about it but still employer took certain action which uh just created this violation so in such a situation there are criminal penalties involved the employee goes to labor commissioner office to report these violations and then further labor commissioner's office will refer this case for criminal uh prosecution to your local district attorney's office and if there are evidence then obviously charges will be brought so you you should not i think get into that situation so it's very simple to follow the law and these are very simple rules and now there are tools also provided either if you're talking about quickbooks fresh books or whatever kind of books or software application so it's very easy to keep track of these things and it and and it's automatic you you have a certain [Music] pay period certain pay date you just fill in those numbers in your quickbooks or whichever software you're using and it automatically send these direct deposit automatically sends in the employee portal these pay stubs so you don't have worry about just keeping track of individual thing so the important thing is that establish those procedures and systems based on these basic laws so thanks for watching these videos so in the next video we'll talk about further some basic laws about topics involved with employment law and and just try to try to provide you some basic knowledge about these things so if you have if you have any issues or if you're thinking about so at least you have that basic knowledge so you can talk with any legal professional uh to improve your systems and procedures thank you you