On April 12, 2012, the Department of Labor Standards Enforcement (DLSE) published a revised Notice to Employee Form in conjunction with the new Labor Code section 2810.5.  Effective January 1, 2012, Labor Code section 2810.5 requires all employers (except public entities) to provide non-exempt employees (except certain unionized employees), at the time of hiring, with a notice that specifies the rate and the basis of the employee's wages and to notify each employee in writing of any changes to the information set forth in the notice within seven calendar days of the changes unless such changes are reflected on a timely wage statement or another writing.  To comply with the new law, DLSE created a Form DLSE-NTE for employers to use which satisfies the requirements of Section 2810.5.  This most recent version the Form, published on April 12, 2012, was the result of employer complaints and confusion over the information sought in prior versions of the Form.  The new Notice to Employee Form is available here.

The Form has been simplified in general by removing the explanatory paragraphs and revising the language to be more concise.  In comparing the forms, the major difference is located in the Wage Information section.  The new Form now asks employers whether a “written agreement exist[s] providing the rate(s) of pay,” yes or no?  If the answer is yes, then there is a follow up question asking whether all rate(s) of pay are contained in that written agreement.  The previous version of the Form asked whether the employment agreement is oral or written.  This question caused a bit of anxiety among employers as employment agreements are usually at-will and can be partly written and partly oral.  The revisions clarify the information that is being sought from employers – whether a written agreement exists as to rates of pay.

Other changes in the Form include the following:

·    The new Form requests the “Start Date” rather than the old version’s “Hire Date” (The FAQ explain that the “Start Date” is the last date the Form must be provided to the employee)

·    The new Form requests the “Legal Name of Hiring Employer” rather than the old version’s “Name of Employer”

·    The new Form only asks if the hiring employer is a staffing agency/business, whereas the old version asks if the employer is a sole proprietor, corporation, limited liability company, or general partnership

·    The new Form adds a statement that clarifies that if there are any allowances claimed as part of the minimum wage, the employee’s signature of acknowledgement of receipt does not constitute a “voluntary written agreement” for the allowances as required by the Wage Orders

·    The new Form makes it optional for the employee to sign the Acknowledgment of Receipt section.

Additionally, the DLSE updated the Frequently Asked Questions (FAQ) for the Form.  The new questions and answers include clarification on what to do when an employee refuses to sign the Form; what to do when the regular rate of pay varies from pay period to pay period; and what is an employer’s “legal name;” among other questions.  It is still unclear whether the Form applies only to new hires or if the Form must also be provided to current employees whose wages change after January 1, 2012.  The FAQ #2 still states that, “it would be a best practice for employers not only to provide the notice to new hires, but also to current employees.”  The FAQ are available here.  Employers should consult experienced employment law counsel with any questions concerning the new Form and the notice requirement.

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