Navigating California’s Wage Statement Law: Implications of the Naranjo v. Spectrum Security Services, Inc. Ruling

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  • Navigating California’s Wage Statement Law: Implications of the Naranjo v. Spectrum Security Services, Inc. Ruling

The California Supreme Court’s recent ruling in Naranjo v. Spectrum Security Services, Inc. has significant implications for employers in the state. The ruling establishes that if an employer can demonstrate it reasonably and in good faith believed it was providing complete and accurate wage statements to its employees, then it has not “knowingly and intentionally” violated California’s wage statement law, even if that belief was mistaken. This “good faith” defense is crucial as it can shield employers from substantial penalties for inaccuracies in wage statements. However, the defense requires employers to show they had a reasonable basis for believing their wage statements complied with the law.

Employers should take several steps in light of this ruling. First, they should review their current wage statement practices to ensure compliance with California’s strict requirements. This includes regularly auditing wage statements and reviewing underlying pay practices. Second, employers should document their audits and other efforts to comply with wage statement laws, as this documentation can serve as evidence of good faith in the event of a legal challenge. Finally, employers should stay informed about developments in California employment law to adapt their practices accordingly and minimize legal risks.

If you need assistance to further understand how these impacts your business, please contact us at info@mnklawyers.com.

This material is provided for informational purposes only. It is not intended to constitute legal advice, nor does it create a client-lawyer relationship between MNK Law and any recipient. Recipients should consult with counsel before taking any actions based on the information contained within this material.

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