Los Angeles, California employment law lawyer represented the Plaintiff who sued on a labor code violation theory,
California law requires employers to provide their
employees with written wage statements listing gross and net
wages earned, hourly pay rates, hours worked, and other
employment-related information. (Lab. Code, § 226.) If a
claimant demonstrates that an employer has failed to comply
with this requirement, the claimant is entitled to an injunction
compelling compliance and an award of costs and reasonable
attorney’s fees. (Id., subd. (h).) But in the case of a “knowing
and intentional failure . . . to comply,” the law provides for
statutory penalties of up to $4,000 or the employee’s actual
damages, should the employee’s damages exceed the statutory
penalties. (Id., subd. (e)(1).) The question presented is whether
an employer has knowingly and intentionally failed to comply
with section 226’s requirements when the employer had a good
faith, yet erroneous, belief that it was in compliance.