California! The Basics for Employees and Payroll Pros. (Episode 121)

[00:00:00] [SPEAKER_02]: Hold on, I want to make sure that if you're new to California Payroll as a

[00:00:04] [SPEAKER_02]: payroll professional, you want to make sure because in the state of California,

[00:00:09] [SPEAKER_02]: tipped employees must receive their full state or local minimum wage plus

[00:00:14] [SPEAKER_02]: their tips. Other states, they have a lower tipped minimum wage.

[00:00:19] [SPEAKER_05]: Yeah, that's a good quote.

[00:00:21] [SPEAKER_05]: Yep. So right. So if you're a Payroll Pro there, make sure your folks

[00:00:25] [SPEAKER_05]: aren't getting shorted for that. You have the right minimum.

[00:00:31] [SPEAKER_05]: Welcome back folks. This is episode 121.

[00:00:36] [SPEAKER_05]: It's about your paycheck and payroll as we continue to reformat our journey here.

[00:00:44] [SPEAKER_05]: We're talking about both things, right?

[00:00:47] [SPEAKER_05]: The first segment is going to be about the paycheck side of things geared toward

[00:00:52] [SPEAKER_05]: employees. And then the second segment for the pros.

[00:00:55] [SPEAKER_05]: Same subject from two different angles.

[00:00:58] [SPEAKER_05]: So let's see how we go, man. Before we get into all that, how you doing, Walt?

[00:01:03] [SPEAKER_02]: Man, I'm good. Happy Monday to you.

[00:01:07] [SPEAKER_05]: Monday when we record, who knows when you hear it?

[00:01:09] [SPEAKER_02]: Good, man. No complaints. It was a good Olympics.

[00:01:12] [SPEAKER_02]: I don't know if you saw any of the Olympics.

[00:01:15] [SPEAKER_05]: I saw a little bit of stuff here and there. It was cool.

[00:01:17] [SPEAKER_05]: And I saw like the medals like we did in America.

[00:01:20] [SPEAKER_05]: I heard some controversy though. I heard that.

[00:01:23] [SPEAKER_05]: What was it like? I don't know if it was this year or last.

[00:01:25] [SPEAKER_05]: Other countries called out the U.S.

[00:01:27] [SPEAKER_05]: because we were reporting the total medal count to make it look like we were

[00:01:34] [SPEAKER_05]: constantly over other countries.

[00:01:36] [SPEAKER_05]: We weren't saying, oh, 10 gold, three bronze, right?

[00:01:41] [SPEAKER_05]: We were saying the whole medal count.

[00:01:43] [SPEAKER_05]: Oh, we are over. And I was listening to Trevor Noah.

[00:01:46] [SPEAKER_05]: Hey, and he said that other countries were calling us out for that.

[00:01:51] [SPEAKER_05]: So I thought that was a thing.

[00:01:53] [SPEAKER_02]: But this year, I could say that ESPN did was tracking.

[00:01:57] [SPEAKER_02]: They had a medal tracker. Oh, really? On their site.

[00:02:00] [SPEAKER_02]: Yes. You can see by country how many gold, silver and bronze they want.

[00:02:04] [SPEAKER_02]: So I think the U.S. was tied with China for the most gold.

[00:02:08] [SPEAKER_02]: Oh, 40. They were 140.

[00:02:10] [SPEAKER_02]: And then the U.S. like just killed it in silver and bronze.

[00:02:14] [SPEAKER_02]: So we did have the most overall medals

[00:02:17] [SPEAKER_02]: and we were tied for the most overall gold this year as well.

[00:02:22] [SPEAKER_04]: No, no doubt.

[00:02:23] [SPEAKER_02]: Yeah. And another before I continue on, man, how are you?

[00:02:27] [SPEAKER_05]: No, I'm good. I'm good.

[00:02:28] [SPEAKER_05]: You also have in your notes here, Steph Curry Olympics.

[00:02:31] [SPEAKER_02]: Yeah, man. Did you?

[00:02:32] [SPEAKER_02]: I don't know if you saw the last two games because I didn't watch them.

[00:02:36] [SPEAKER_02]: So basketball is my first love.

[00:02:39] [SPEAKER_02]: So like Steph has been he was off like the first couple of games.

[00:02:42] [SPEAKER_02]: He wasn't really hitting it.

[00:02:44] [SPEAKER_02]: I think it was one game he missed all his shots.

[00:02:47] [SPEAKER_02]: But he didn't hit no shots.

[00:02:48] [SPEAKER_02]: And then these last two games, like the semifinal and the final,

[00:02:51] [SPEAKER_02]: man, he was just killing it.

[00:02:53] [SPEAKER_02]: He was killing it like he was Chef Curry.

[00:02:56] [SPEAKER_02]: You know what I'm saying?

[00:02:56] [SPEAKER_02]: Yeah. So I know our episode today is about California.

[00:02:59] [SPEAKER_02]: That's where he's from.

[00:03:00] [SPEAKER_02]: Oh, no doubt.

[00:03:02] [SPEAKER_02]: No, that's where he plays.

[00:03:03] [SPEAKER_04]: I was going to say he's also from there.

[00:03:05] [SPEAKER_02]: OK, that's where he plays.

[00:03:06] [SPEAKER_02]: I think he's from North Carolina, actually.

[00:03:08] [SPEAKER_02]: But that's where he plays the Golden State Warriors.

[00:03:10] [SPEAKER_02]: So I wanted to shout him out.

[00:03:11] [SPEAKER_02]: Just love seeing him play.

[00:03:13] [SPEAKER_02]: And look, there's a lot of talent.

[00:03:15] [SPEAKER_02]: KD is older. LeBron is older.

[00:03:18] [SPEAKER_02]: Steph is older.

[00:03:20] [SPEAKER_02]: There's a lot of older players that are on the cusp of probably retiring.

[00:03:24] [SPEAKER_02]: They're probably playing a few more years.

[00:03:26] [SPEAKER_02]: But I don't know who's going to step up.

[00:03:28] [SPEAKER_05]: Let me ask you, and I'm sorry, folks, we, you know,

[00:03:30] [SPEAKER_05]: we always drift off on some unexpected.

[00:03:33] [SPEAKER_05]: But who is your favorite basketball player?

[00:03:38] [SPEAKER_05]: Right now, still playing.

[00:03:41] [SPEAKER_02]: Right now, still playing.

[00:03:43] [SPEAKER_02]: I would have to say stuff, man.

[00:03:44] [SPEAKER_02]: I love watching him play.

[00:03:45] [SPEAKER_02]: I love watching the way he plays, man.

[00:03:47] [SPEAKER_02]: He is. I think he definitely changed the game.

[00:03:51] [SPEAKER_02]: OK, the shooting.

[00:03:52] [SPEAKER_02]: I think he's probably the best shooter we will.

[00:03:54] [SPEAKER_02]: We probably will see for a long time.

[00:03:58] [SPEAKER_02]: I think he is real. OK.

[00:04:01] [SPEAKER_02]: The difficulty of the shots and stuff, you know what I'm saying?

[00:04:04] [SPEAKER_04]: Better than John Stockton?

[00:04:06] [SPEAKER_04]: Yes. Oh, wow.

[00:04:09] [SPEAKER_02]: Yes. If you sit and watch some of the some of the tapes,

[00:04:12] [SPEAKER_02]: so Steph and like some of the shots he makes and like it's crazy, man.

[00:04:16] [SPEAKER_02]: It's crazy.

[00:04:16] [SPEAKER_02]: He's like one of the best shooters.

[00:04:18] [SPEAKER_05]: But you're not a Golden State fan.

[00:04:20] [SPEAKER_02]: I don't mind them winning, but he's my team.

[00:04:22] [SPEAKER_05]: Right. OK, so that's your favorite team, but you're not.

[00:04:25] [SPEAKER_05]: Yeah, I get that too, because you have favorite players,

[00:04:29] [SPEAKER_05]: especially now, like for me with football.

[00:04:32] [SPEAKER_05]: It's almost a Kwon Barkley fan.

[00:04:37] [SPEAKER_05]: Can't can't like you like his team.

[00:04:40] [SPEAKER_05]: Never that is never that's never going to happen.

[00:04:43] [SPEAKER_05]: But I'm a fan of him as a player.

[00:04:45] [SPEAKER_05]: I was watching some of the the Giants have hard knocks, the series, you know,

[00:04:50] [SPEAKER_05]: so I've been watching some of that and I'm just like,

[00:04:53] [SPEAKER_05]: and they're going through that offseason thing.

[00:04:54] [SPEAKER_05]: And I'm like, how did you all let him go like that?

[00:04:58] [SPEAKER_05]: I get it, though, because they were saying, look,

[00:05:00] [SPEAKER_05]: we have all these gaps in other places.

[00:05:03] [SPEAKER_05]: Anywho, all right, that's dope, man. That's dope.

[00:05:06] [SPEAKER_05]: That's dope. What else are you watching anything recently that you like?

[00:05:11] [SPEAKER_02]: Oh, on TV, I finished Fallout.

[00:05:13] [SPEAKER_02]: Fallout was good. OK, cool.

[00:05:16] [SPEAKER_02]: Yeah, so I finished that.

[00:05:17] [SPEAKER_02]: I understand why I was nominated for 17 Emmys.

[00:05:21] [SPEAKER_02]: Oh, dang. It was a really good show.

[00:05:23] [SPEAKER_02]: Dang. I watched Presumed Innocent with

[00:05:27] [SPEAKER_02]: OJU, Jake Gyllenhaal.

[00:05:29] [SPEAKER_02]: Yeah, and that was an amazing show.

[00:05:32] [SPEAKER_02]: I know it was a remake of the movie that Harrison Ford was in

[00:05:35] [SPEAKER_02]: from back in the day.

[00:05:36] [SPEAKER_04]: Oh, I saw that movie, but I didn't realize it was a oh, that all that.

[00:05:40] [SPEAKER_04]: Oh, I didn't even realize that.

[00:05:41] [SPEAKER_02]: Yeah. Oh, it was a remake.

[00:05:44] [SPEAKER_02]: So it was good, man. So it was good.

[00:05:46] [SPEAKER_02]: And I went to the movie theater and I saw Deadpool and Wolverine.

[00:05:50] [SPEAKER_02]: Me too. Me too.

[00:05:52] [SPEAKER_05]: I look, I think the movie was fine,

[00:05:56] [SPEAKER_05]: but it was way too many F bombs.

[00:06:00] [SPEAKER_05]: No, I felt like that just was I think the F bomb and the gore.

[00:06:06] [SPEAKER_05]: Was well, for no reason.

[00:06:08] [SPEAKER_02]: That's Deadpool in the comics.

[00:06:10] [SPEAKER_02]: So that is true to who Deadpool is in the comics.

[00:06:15] [SPEAKER_02]: So they were like, let's let's just say homage to him in the comics.

[00:06:18] [SPEAKER_02]: So that's how he is.

[00:06:19] [SPEAKER_05]: I guess, bro.

[00:06:20] [SPEAKER_05]: But it's just every other word like it was just too much for me.

[00:06:24] [SPEAKER_05]: But the movie was good. I think I did it.

[00:06:25] [SPEAKER_05]: I think it did a lot for the more if you're a Marvel fan and all that.

[00:06:29] [SPEAKER_05]: It did a lot for the Marvel universe because of how they can start

[00:06:34] [SPEAKER_05]: bringing all these lost characters and series and things in.

[00:06:39] [SPEAKER_05]: Fantastic Four, the X-Men Marvel universe includes X-Men and Fantastic Four.

[00:06:46] [SPEAKER_05]: But they have not brought it into the MCU yet in a real way.

[00:06:50] [SPEAKER_05]: And I think this movie does that for the MCU if you're a fan.

[00:06:54] [SPEAKER_05]: Oh, we'll see. Yeah, no doubt.

[00:06:58] [SPEAKER_02]: So and then the last thing I had, you know, was like,

[00:07:01] [SPEAKER_02]: it's been bothering me by all this, the recalls that's been going on

[00:07:06] [SPEAKER_02]: with the food lately. Yeah.

[00:07:07] [SPEAKER_02]: Like I'm seeing like the mysterious salmonella outbreaks,

[00:07:11] [SPEAKER_02]: like for different things.

[00:07:12] [SPEAKER_05]: Or said Boarshead was the one.

[00:07:15] [SPEAKER_05]: No, you didn't. My cousin sent it to me because we are Boarshead fans.

[00:07:18] [SPEAKER_05]: And I threw away I had some Boarshead in the fridge when she sent it.

[00:07:21] [SPEAKER_05]: And I was like, let me make sure she's not sending me

[00:07:23] [SPEAKER_05]: some nonsense that she thought was real.

[00:07:26] [SPEAKER_05]: I looked it up and I was like, oh, this is real.

[00:07:29] [SPEAKER_05]: Through that away.

[00:07:30] [SPEAKER_05]: And now I'm still like I go to the store and I'm like, wait a minute.

[00:07:34] [SPEAKER_05]: They're still selling it.

[00:07:35] [SPEAKER_05]: Like, how do we know?

[00:07:38] [SPEAKER_02]: Some people might get sick, some people like that.

[00:07:41] [SPEAKER_05]: Oh, but you have to expect the because it happens every now and then

[00:07:44] [SPEAKER_05]: where recalls come in, we have to expect the food.

[00:07:48] [SPEAKER_02]: Hey, was somebody told me that

[00:07:50] [SPEAKER_02]: it's in this part of the conspiracy theorists in them.

[00:07:53] [SPEAKER_02]: But they're like, hey, every election year, something like this always have.

[00:07:58] [SPEAKER_05]: That's look. Yeah, it is probably

[00:08:01] [SPEAKER_05]: it's a mixture of things.

[00:08:03] [SPEAKER_05]: So that's a good call out, though, because the news is good for that.

[00:08:07] [SPEAKER_05]: The news and things are good for look at this, not this

[00:08:12] [SPEAKER_05]: because the happen in the right hand, not my left hand.

[00:08:15] [SPEAKER_02]: Because those things always have there are always review.

[00:08:18] [SPEAKER_02]: Do the research.

[00:08:20] [SPEAKER_02]: You'll find some of it is just not televised or to your point.

[00:08:24] [SPEAKER_02]: That's right. You go to FBA.

[00:08:26] [SPEAKER_05]: They're running a list of recalls.

[00:08:28] [SPEAKER_05]: Yeah, all the time. All the time.

[00:08:30] [SPEAKER_05]: That's right. Because our food chain is horrible.

[00:08:33] [SPEAKER_05]: Food handling is horrible.

[00:08:35] [SPEAKER_05]: Forget about that's a whole I'm sure there's other podcasts

[00:08:37] [SPEAKER_05]: that get into the state of our food, you know what I mean?

[00:08:41] [SPEAKER_05]: And political things and all that.

[00:08:44] [SPEAKER_05]: Yeah. Yeah. All right, man.

[00:08:45] [SPEAKER_05]: We'll get here.

[00:08:46] [SPEAKER_05]: Get into the pay stuff and pay news.

[00:08:49] [SPEAKER_05]: What you got for us today?

[00:08:51] [SPEAKER_02]: So mine is an article.

[00:08:53] [SPEAKER_02]: We're always talking about data and data security.

[00:08:56] [SPEAKER_02]: So I found an article by help net security dot com.

[00:09:01] [SPEAKER_02]: And it's talking about the major data bridges

[00:09:04] [SPEAKER_02]: that have occurred in twenty twenty four.

[00:09:07] [SPEAKER_02]: So just going to go through some of the names

[00:09:09] [SPEAKER_02]: that have been hacked and has breaches.

[00:09:13] [SPEAKER_02]: Oh, Treylo was in happened in twenty twenty

[00:09:16] [SPEAKER_02]: happened in January of this year.

[00:09:18] [SPEAKER_02]: And they basically had emails, usernames and full names

[00:09:23] [SPEAKER_02]: and other account info that was compromised

[00:09:25] [SPEAKER_02]: or listed online.

[00:09:27] [SPEAKER_02]: A site called or a company called Anydesk was hacked

[00:09:30] [SPEAKER_02]: in twenty February of this year.

[00:09:33] [SPEAKER_02]: France, Trouville was a French national unemployment agency

[00:09:37] [SPEAKER_02]: and they suffered a data breach and their people's social

[00:09:41] [SPEAKER_02]: security numbers, a bunch of PII data basically was compromised.

[00:09:47] [SPEAKER_02]: Nissan had a data breach in March this year

[00:09:51] [SPEAKER_02]: that impacted over 100000 individuals in December.

[00:09:55] [SPEAKER_02]: Meet Mitra, which I don't know what that is,

[00:09:58] [SPEAKER_02]: but they were breached by attackers via zero to zero day

[00:10:03] [SPEAKER_02]: vulnerabilities. I don't know what that means.

[00:10:05] [SPEAKER_02]: Something with some connect secure VPN devices.

[00:10:09] [SPEAKER_02]: And so they said these attackers also managed to move laterally

[00:10:13] [SPEAKER_02]: and compromise the company's network infrastructure as well.

[00:10:18] [SPEAKER_02]: Dropbox, which is something that a lot of us maybe

[00:10:22] [SPEAKER_02]: have have used like they reached out back box in May.

[00:10:25] [SPEAKER_02]: And I didn't know about this until I saw this article

[00:10:28] [SPEAKER_02]: and I didn't know Dropbox had been breached like that.

[00:10:32] [SPEAKER_02]: Again, those those were passwords, usernames,

[00:10:35] [SPEAKER_02]: phone numbers, API keys,

[00:10:39] [SPEAKER_02]: tokens and multi factor authentication data as well.

[00:10:44] [SPEAKER_02]: Oh, wow. There was a BBC pension scheme in May

[00:10:49] [SPEAKER_02]: where personal information of current and former BBC employees

[00:10:53] [SPEAKER_02]: were exposed in a data breach that was an in-house pension scheme.

[00:10:59] [SPEAKER_02]: So somebody did it from the inside.

[00:11:01] [SPEAKER_02]: And remember that stat we saw some of the

[00:11:03] [SPEAKER_02]: a lot of the crimes that occur when it comes to fraud

[00:11:05] [SPEAKER_02]: and those different payroll crimes.

[00:11:07] [SPEAKER_02]: It's an inside job.

[00:11:10] [SPEAKER_02]: A company called Team Viewer, a team viewer had an intrusion

[00:11:14] [SPEAKER_02]: and the threat actor leveraged a compromised employee account

[00:11:19] [SPEAKER_02]: to copy the employee directory data, which included like names,

[00:11:24] [SPEAKER_02]: corporate contact information and encrypted employee passwords

[00:11:29] [SPEAKER_02]: from their internal corporate IT environment.

[00:11:33] [SPEAKER_02]: Advanced Auto Parts, they were just they were just hacked in July.

[00:11:37] [SPEAKER_02]: So that's a month ago.

[00:11:38] [SPEAKER_05]: What it all says is anybody can get it.

[00:11:41] [SPEAKER_05]: Yeah, I mean, anybody can get it.

[00:11:43] [SPEAKER_05]: And I think that for for our listeners is we have to protect our

[00:11:50] [SPEAKER_05]: name and data, right?

[00:11:53] [SPEAKER_05]: Pay attention. Google will tell you you use Google.

[00:11:56] [SPEAKER_05]: It tells you, hey, you got too many.

[00:11:58] [SPEAKER_05]: Your stuff is on the dark web and you got too many repeating passwords.

[00:12:02] [SPEAKER_05]: Your password is not strong enough.

[00:12:05] [SPEAKER_05]: The websites like your boy Anthony that that kind of told us somewhere.

[00:12:09] [SPEAKER_05]: I forget the websites now, but I'm sure you could just Google

[00:12:12] [SPEAKER_05]: data breaches and look this stuff up.

[00:12:15] [SPEAKER_05]: It's the information is readily available.

[00:12:17] [SPEAKER_05]: We have to pay attention.

[00:12:19] [SPEAKER_05]: We got to try to pay attention to our data because.

[00:12:23] [SPEAKER_05]: Every guaranteed, if you have a digital imprint,

[00:12:26] [SPEAKER_05]: you're at risk of getting hacked or look, do you use

[00:12:31] [SPEAKER_02]: and look that last sentence in the paragraph about events, auto parts,

[00:12:37] [SPEAKER_02]: it said that some of the reason that some of those accounts

[00:12:40] [SPEAKER_02]: were able to be breached was because they did not have

[00:12:43] [SPEAKER_02]: that multi multi factor authentication.

[00:12:45] [SPEAKER_05]: Oh, they gave him a choice.

[00:12:47] [SPEAKER_05]: See, but that's a call out, though, to the company.

[00:12:50] [SPEAKER_05]: I think that.

[00:12:51] [SPEAKER_05]: I think we have to force, I think not we companies should force it.

[00:12:56] [SPEAKER_05]: They don't give folks an option, and I think it's going to get there.

[00:12:59] [SPEAKER_05]: I think some companies are like, oh, I don't think about it

[00:13:02] [SPEAKER_05]: because when you're in retail and you're in money, you want to make money.

[00:13:05] [SPEAKER_05]: You don't want to create friction for your customer

[00:13:08] [SPEAKER_05]: to get on your site and spend money and do things.

[00:13:12] [SPEAKER_05]: Unfortunately, you have to like it.

[00:13:14] [SPEAKER_05]: They only want to put it around important things or finance.

[00:13:18] [SPEAKER_05]: Like, I don't know what what the important level is,

[00:13:22] [SPEAKER_05]: but I think it has to be anything, everything and anything.

[00:13:25] [SPEAKER_05]: I think has to be multi factor.

[00:13:26] [SPEAKER_05]: It's annoying, but it's necessary.

[00:13:30] [SPEAKER_05]: Every company that you could think of can be breached.

[00:13:33] [SPEAKER_05]: When when Anthony was on and I looked up

[00:13:36] [SPEAKER_05]: because you could look up your own email address, the one that he had.

[00:13:39] [SPEAKER_02]: And you can see it was on the dark web.

[00:13:41] [SPEAKER_05]: What what companies you deal with were hacked.

[00:13:45] [SPEAKER_05]: AT&T came right up.

[00:13:46] [SPEAKER_05]: My phone provider, first one home hacked everybody.

[00:13:50] [SPEAKER_05]: It's unavoidable.

[00:13:52] [SPEAKER_05]: You have to protect yourself.

[00:13:54] [SPEAKER_02]: Yeah, I have an experience and I think I pay $4.99 a month or something like that.

[00:13:58] [SPEAKER_02]: And then I'm alert on me every time my socials exposed,

[00:14:01] [SPEAKER_02]: any time a password is exposed.

[00:14:03] [SPEAKER_02]: Google does that sometimes to my Google account.

[00:14:06] [SPEAKER_05]: Unless we don't pay attention.

[00:14:06] [SPEAKER_05]: No people ain't paying attention.

[00:14:08] [SPEAKER_05]: No people ain't paying attention.

[00:14:10] [SPEAKER_05]: And guess what?

[00:14:10] [SPEAKER_05]: If these hackers could dribble away five dollars at a time,

[00:14:14] [SPEAKER_05]: a dollar at a time, three dollars at a time, we ain't paying attention.

[00:14:17] [SPEAKER_05]: But they can do that times a million in a day.

[00:14:20] [SPEAKER_05]: It was like six billion thing transactions a day that again,

[00:14:25] [SPEAKER_05]: Anthony's websites had pointed out and it's in the show notes.

[00:14:28] [SPEAKER_05]: And that in that episode, I forget what episode is.

[00:14:30] [SPEAKER_05]: We got to remember these.

[00:14:32] [SPEAKER_05]: But yeah. Good stuff, man.

[00:14:34] [SPEAKER_02]: What do you got for us?

[00:14:36] [SPEAKER_05]: So mine of two call outs for in the spirit of California for today's topic,

[00:14:41] [SPEAKER_05]: California enacted a heat protection for employees who work indoors.

[00:14:46] [SPEAKER_05]: So if you work indoors, the state applied,

[00:14:50] [SPEAKER_05]: the state must adopt safety measures that go into it.

[00:14:54] [SPEAKER_05]: Employers, I'm sorry, employers in the state of Cali

[00:14:56] [SPEAKER_05]: must adopt safety measures that go into effect

[00:14:59] [SPEAKER_05]: in most cases when indoor temperatures reach 82 degrees.

[00:15:04] [SPEAKER_05]: OK, OK. Yeah.

[00:15:06] [SPEAKER_05]: And shoot, I was in a business recently and inside was hot.

[00:15:11] [SPEAKER_05]: And it was like, well, I'll need some fans or something.

[00:15:14] [SPEAKER_05]: And you know what the answer was all in the winter.

[00:15:16] [SPEAKER_05]: It's cooler. What? Yeah. But what about now?

[00:15:19] [SPEAKER_05]: You're going to have somebody pass out from a heat stroke right now.

[00:15:23] [SPEAKER_05]: Yeah, but your customers are going to pass out now.

[00:15:27] [SPEAKER_05]: Cali's is oh wow. My boy. Sorry, Jay.

[00:15:30] [SPEAKER_05]: And then there's another one real quick.

[00:15:31] [SPEAKER_05]: Food workers in Cali are fast food workers are protesting

[00:15:35] [SPEAKER_05]: against the minimum wage they want to bump another four dollars.

[00:15:38] [SPEAKER_05]: They just got a four dollar bump from 16 to 20 dollars an hour.

[00:15:43] [SPEAKER_05]: Now they want to bump another four dollars.

[00:15:45] [SPEAKER_05]: Yeah. Be careful, folks, because as we see, fast food can take your job.

[00:15:50] [SPEAKER_02]: We can take your job.

[00:15:52] [SPEAKER_02]: Also, AI, AI, your job.

[00:15:55] [SPEAKER_05]: And you go into McDonald's here wherever I go.

[00:15:59] [SPEAKER_05]: There's more kiosks than people actually taking your order.

[00:16:02] [SPEAKER_05]: Shoot, I went to a spot where was I?

[00:16:06] [SPEAKER_05]: Oh, man, I forget where I was.

[00:16:07] [SPEAKER_05]: But it was like, oh, it was I was here in Boca.

[00:16:10] [SPEAKER_05]: And I went and it was a burger spot.

[00:16:13] [SPEAKER_05]: I forget the name of it right now.

[00:16:14] [SPEAKER_05]: You couldn't even order from a person.

[00:16:17] [SPEAKER_05]: Yeah, you had to order through the kiosk.

[00:16:19] [SPEAKER_05]: Yeah. And then somebody brought the food out.

[00:16:23] [SPEAKER_02]: Yeah. Look, man, and we've done a show.

[00:16:25] [SPEAKER_02]: I think we did a show on this.

[00:16:26] [SPEAKER_02]: We touched on this topic before about the increase in California.

[00:16:31] [SPEAKER_02]: And remember some of the stats or some of the data said that

[00:16:34] [SPEAKER_02]: some restaurants are some businesses had to close

[00:16:37] [SPEAKER_02]: their doors because they couldn't afford

[00:16:41] [SPEAKER_02]: to pay up to keep paying their employees like that.

[00:16:43] [SPEAKER_02]: Yeah, because they did it and they were like, hey,

[00:16:46] [SPEAKER_02]: we're going to do right by our employees based on what the state says.

[00:16:50] [SPEAKER_02]: But because we can't maintain it, we got to close our doors.

[00:16:53] [SPEAKER_05]: Yeah, and it's happening.

[00:16:55] [SPEAKER_05]: It's happening. And I'm not sure the push for more money is the right angle.

[00:17:00] [SPEAKER_05]: I don't know. I don't know the answer to it.

[00:17:02] [SPEAKER_02]: But prices are high and inflation is high.

[00:17:06] [SPEAKER_02]: Everything's high, especially in California, man.

[00:17:08] [SPEAKER_05]: Yeah, everything's higher.

[00:17:10] [SPEAKER_05]: And it's going to be a while.

[00:17:11] [SPEAKER_05]: It's going to be a big shift.

[00:17:12] [SPEAKER_05]: AI and robotics are going to shift the job market.

[00:17:17] [SPEAKER_05]: There's no way around it, folks.

[00:17:18] [SPEAKER_05]: We have to adopt and adapt and progress.

[00:17:22] [SPEAKER_05]: I don't know the fancy phrase for it, but get it together

[00:17:24] [SPEAKER_05]: and start retooling, relearning.

[00:17:28] [SPEAKER_05]: If you're flipping burgers right now, you might want to learn something else

[00:17:30] [SPEAKER_05]: because that is something that a robot can do.

[00:17:34] [SPEAKER_05]: And I don't want to and maybe better than a person, because look,

[00:17:38] [SPEAKER_05]: I'd be open to it because guess what?

[00:17:40] [SPEAKER_05]: I burn my food sometimes for real.

[00:17:42] [SPEAKER_05]: If I don't use a temperature thing, I'm burning.

[00:17:44] [SPEAKER_05]: I'm overcooking or undercooking.

[00:17:46] [SPEAKER_02]: Yeah, right.

[00:17:47] [SPEAKER_05]: And my girls are the first ones to say, oh, man, this is man.

[00:17:50] [SPEAKER_04]: I got tough ground.

[00:17:53] [SPEAKER_05]: They're like, you know, this ain't it.

[00:17:55] [SPEAKER_05]: This ain't it. Yeah.

[00:17:57] [SPEAKER_05]: Look, we're going to get into speaking of California.

[00:17:59] [SPEAKER_05]: Oh, wait, pay the bills.

[00:18:01] [SPEAKER_05]: Yeah, let's pay the bills.

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[00:19:14] [SPEAKER_05]: to get let them get them know I'll cut that out.

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[00:19:23] [SPEAKER_05]: All right, man. So you got some great stuff here.

[00:19:25] [SPEAKER_05]: Oh, you want me to start it off and you finish it up?

[00:19:27] [SPEAKER_05]: Six there.

[00:19:29] [SPEAKER_02]: Yeah, we got six for the employee and six for the employer.

[00:19:34] [SPEAKER_05]: Error Pro. Yes.

[00:19:35] [SPEAKER_05]: More probably. I like to talk to the payroll pros.

[00:19:38] [SPEAKER_03]: The payroll for all. Yeah, you're right.

[00:19:40] [SPEAKER_05]: Oh, where's my one?

[00:19:42] [SPEAKER_05]: Anywho, so we can talk about some employee rights in California

[00:19:45] [SPEAKER_05]: for the employees, this is California employees.

[00:19:49] [SPEAKER_05]: What one of the things we're going to promise to deliver on this show

[00:19:52] [SPEAKER_05]: is state by state go into the different things that impact

[00:19:56] [SPEAKER_05]: the employee, what you need to know as an employee, arm you,

[00:20:02] [SPEAKER_05]: get you get give you some good information about what is your rights

[00:20:06] [SPEAKER_05]: really as an employee.

[00:20:09] [SPEAKER_05]: So Cal and California now, and you might be like, oh,

[00:20:13] [SPEAKER_05]: why are you starting with Cali?

[00:20:14] [SPEAKER_05]: Because we did the numbers right.

[00:20:16] [SPEAKER_05]: We were like, where do we start alphabetically?

[00:20:19] [SPEAKER_05]: Because we like because I'm from New York and was from Florida.

[00:20:22] [SPEAKER_05]: Like, where do you know, where do we start?

[00:20:24] [SPEAKER_05]: So we try to keep it data driven and we just California

[00:20:28] [SPEAKER_05]: literally has the most employees in the country.

[00:20:32] [SPEAKER_05]: So we'll start there.

[00:20:34] [SPEAKER_05]: And they're which also may be why they're the most employee centric,

[00:20:39] [SPEAKER_05]: meaning they have a lot of rules that protect the employees.

[00:20:43] [SPEAKER_05]: They're very employee favorable, not employer favorable.

[00:20:48] [SPEAKER_05]: So they offer some strong protections for workers in the United States,

[00:20:52] [SPEAKER_05]: probably one of the most strongest state in the country.

[00:20:55] [SPEAKER_05]: And here are some of the top there are many more and we'll continue to,

[00:21:00] [SPEAKER_05]: you know, we're going to bounce around different states

[00:21:02] [SPEAKER_05]: and talk about different things, but we'll cycle back through.

[00:21:05] [SPEAKER_05]: These are the main ones. Right.

[00:21:06] [SPEAKER_05]: So in California, number one is right to minimum wage and overtime.

[00:21:11] [SPEAKER_05]: Minimum wage as a California employee,

[00:21:13] [SPEAKER_05]: you're entitled to a state minimum wage as of 2024 is 16 per hour.

[00:21:19] [SPEAKER_05]: But if you're fast food, it's more.

[00:21:23] [SPEAKER_05]: So you got to keep in touch with that.

[00:21:25] [SPEAKER_05]: And if you're in some cities, they break it down by city.

[00:21:29] [SPEAKER_05]: Like they look up city that you're in California

[00:21:32] [SPEAKER_05]: because you will have a different minimum wage per city.

[00:21:37] [SPEAKER_05]: Not I mean, a recent error.

[00:21:39] [SPEAKER_05]: And I said county counties are bigger.

[00:21:41] [SPEAKER_05]: Cities are within counties.

[00:21:43] [SPEAKER_05]: So it's so granular, it's so granular that by city

[00:21:48] [SPEAKER_05]: you get a different minimum wage.

[00:21:50] [SPEAKER_05]: So look up the city that you're in minimum in California.

[00:21:52] [SPEAKER_05]: Make sure you're getting the minimum wage

[00:21:54] [SPEAKER_05]: according to the city you work in, not that you live in.

[00:21:58] [SPEAKER_05]: You work in, OK, overtime pay.

[00:22:01] [SPEAKER_05]: You're entitled to overtime pay.

[00:22:03] [SPEAKER_05]: One point five, of course, is the rate for overtime.

[00:22:08] [SPEAKER_05]: But in Cali, there's an eight hour.

[00:22:12] [SPEAKER_05]: It in most let me clarify, let me put into perspective

[00:22:15] [SPEAKER_05]: in most states and every other state, I know in most states,

[00:22:20] [SPEAKER_05]: overtime is by the work week, by the 40 hour work week.

[00:22:24] [SPEAKER_05]: Right. Not by pay period.

[00:22:27] [SPEAKER_05]: Right. Now, if you get paid every two weeks,

[00:22:28] [SPEAKER_05]: it's not over 80 hours in your paycheck or 86 in the semimonthly.

[00:22:33] [SPEAKER_05]: It's over 40 hours in a week.

[00:22:37] [SPEAKER_05]: That's in most states. In Cali, it's over eight hours in one day.

[00:22:43] [SPEAKER_05]: OK, and it goes into double time if you work 12 hours in a day.

[00:22:49] [SPEAKER_05]: And there's another one here that's oh, there it is.

[00:22:51] [SPEAKER_05]: If you work more than eight hours on the seventh consecutive day in a work.

[00:22:57] [SPEAKER_05]: So, folks, look at your in Cali, you got to look at your overtime.

[00:23:01] [SPEAKER_05]: If not, is your overtime and is your minimum wage right?

[00:23:05] [SPEAKER_02]: Yeah. You want to you want to check it as much as possible, right?

[00:23:07] [SPEAKER_02]: Because, yeah, I'm just here.

[00:23:10] [SPEAKER_02]: Because them because California is so employee centric,

[00:23:14] [SPEAKER_02]: they're supposed to pay you which one everyone is more official for you

[00:23:17] [SPEAKER_02]: as the employees or even the hours in the day or that 40 in the week,

[00:23:21] [SPEAKER_02]: whichever one equals more for you.

[00:23:23] [SPEAKER_05]: That's what they should do. Good call out.

[00:23:25] [SPEAKER_05]: Thank you for that.

[00:23:26] [SPEAKER_05]: And then and if it but all the other one is if it conflicts,

[00:23:30] [SPEAKER_05]: if it's all like a company can't say no, we go by federal.

[00:23:34] [SPEAKER_05]: No, you have to they have to go by what's most favorable to you.

[00:23:38] [SPEAKER_05]: So if your city dictates more than the state,

[00:23:41] [SPEAKER_05]: dictates more than the federal to have to go with your city.

[00:23:44] [SPEAKER_05]: If the state is more right.

[00:23:46] [SPEAKER_05]: So you it has to go more what's most favorable to you.

[00:23:50] [SPEAKER_05]: So number two is meal and rest breaks.

[00:23:52] [SPEAKER_05]: California is very aggressive on meal and rest breaks.

[00:23:57] [SPEAKER_05]: You have they have workers have to have a meal or rest break

[00:24:01] [SPEAKER_05]: after five hours in a day.

[00:24:03] [SPEAKER_05]: If you work more than five hours, you're entitled to a 30 minute

[00:24:07] [SPEAKER_05]: unpaid meal break.

[00:24:08] [SPEAKER_05]: If you work more than 10 hours, then you're entitled to another break.

[00:24:13] [SPEAKER_05]: That's probably people don't even probably know this.

[00:24:15] [SPEAKER_05]: You know what I mean?

[00:24:16] [SPEAKER_05]: And if an employer fails to do this, they owe you an additional hour

[00:24:20] [SPEAKER_05]: of pay for each day that this happens.

[00:24:22] [SPEAKER_05]: There's a penalty.

[00:24:24] [SPEAKER_05]: If you miss your break, there's a penalty that you get paid.

[00:24:27] [SPEAKER_05]: Here's the caveat, though.

[00:24:30] [SPEAKER_05]: Employees can sign off.

[00:24:33] [SPEAKER_05]: Meaning they can waive that break

[00:24:37] [SPEAKER_05]: and avoid the employer can avoid the penalty.

[00:24:42] [SPEAKER_05]: And this is the situations where it makes sense.

[00:24:44] [SPEAKER_05]: You might be like, why would I wave that off?

[00:24:46] [SPEAKER_05]: You would wave it off if you're in a sales position.

[00:24:50] [SPEAKER_05]: I've worked for a company where employees gladly waved it off,

[00:24:53] [SPEAKER_05]: because if they're right in the middle of a sale.

[00:24:58] [SPEAKER_05]: They don't want to be forced to take the break.

[00:25:00] [SPEAKER_05]: They have to make the sale.

[00:25:02] [SPEAKER_05]: If not, they have to pass the sale to their colleague

[00:25:04] [SPEAKER_05]: who's going to get the commission.

[00:25:06] [SPEAKER_05]: Like, they're not trying to do that.

[00:25:07] [SPEAKER_05]: It's more than what the penalty would be and things like that.

[00:25:10] [SPEAKER_05]: So keep that in mind as an employee.

[00:25:13] [SPEAKER_05]: It can be waived, but keep in mind, you have to waive it off.

[00:25:17] [SPEAKER_02]: You have to look and look.

[00:25:20] [SPEAKER_02]: You want to make sure that not just you as the employee

[00:25:23] [SPEAKER_02]: signs that the employer has to sign it to.

[00:25:26] [SPEAKER_02]: Yep. You know what I'm saying?

[00:25:27] [SPEAKER_02]: Because if it's not signed, that you can still be

[00:25:31] [SPEAKER_02]: eligible for that male penalty.

[00:25:34] [SPEAKER_05]: Yep. Fully executed.

[00:25:36] [SPEAKER_05]: And then as far as there's a rest break as well for every four hours

[00:25:39] [SPEAKER_05]: you work on major fraction thereof, you're entitled to a 10 minute

[00:25:42] [SPEAKER_05]: paid rest break. OK.

[00:25:46] [SPEAKER_05]: And then number three is paid sick leave.

[00:25:49] [SPEAKER_05]: California is another one, one of many states.

[00:25:52] [SPEAKER_05]: Definitely a few. They're not the only ones here.

[00:25:54] [SPEAKER_05]: A lot of states do the mandated sick, not so much on the other parts

[00:25:58] [SPEAKER_05]: that more states are doing the sick part.

[00:26:01] [SPEAKER_05]: But California is probably the one of the first to do it.

[00:26:03] [SPEAKER_05]: You recruit at least one hour of paid sick leave for every 30 hours worked.

[00:26:08] [SPEAKER_05]: You can use your sick leave to care for yourself or a family member

[00:26:12] [SPEAKER_05]: or preventative care.

[00:26:14] [SPEAKER_05]: So but here's the thing. Call out for other states.

[00:26:18] [SPEAKER_05]: Every state is different for what you can use that sick time for,

[00:26:21] [SPEAKER_05]: and every state is different on what they award per 30 hours. Right.

[00:26:26] [SPEAKER_05]: So make sure you're looking at what the mandate is for you if you have it.

[00:26:31] [SPEAKER_05]: Usage and I'm going to circle back to something on the accrual real quick,

[00:26:34] [SPEAKER_05]: but the usage for employers and may limit the amount of paid sick

[00:26:38] [SPEAKER_05]: leave you can use to 24 hours.

[00:26:41] [SPEAKER_05]: So they say, hey, you can accrue one hour for every 30,

[00:26:44] [SPEAKER_05]: but they can it can be capped.

[00:26:46] [SPEAKER_05]: It can stop accruing at 24 hours or three days per year.

[00:26:50] [SPEAKER_05]: But some local ordinances will see.

[00:26:54] [SPEAKER_05]: So by the locale, you may get more.

[00:26:58] [SPEAKER_05]: And I think what like San Fran is one of them, right?

[00:27:00] [SPEAKER_05]: That you get more if I'm not mistaken.

[00:27:02] [SPEAKER_05]: I'm not sure. Yeah, because I feel like we've dealt with it.

[00:27:05] [SPEAKER_05]: I think San Francisco gets more.

[00:27:08] [SPEAKER_05]: The here's the thing about the accrual that folks don't realize.

[00:27:12] [SPEAKER_05]: Some companies are generous with it.

[00:27:15] [SPEAKER_05]: The calculation is at least one hour for every 30 hours worked.

[00:27:20] [SPEAKER_05]: Right? By law,

[00:27:24] [SPEAKER_05]: if you don't hit the 30 hour mark, you don't get the one hour.

[00:27:30] [SPEAKER_05]: Some companies will prorate it.

[00:27:32] [SPEAKER_05]: They will give you a fraction, meaning if you got 20,

[00:27:36] [SPEAKER_05]: if you got 15 hours, 15 hours work, they'll give you the half hour.

[00:27:41] [SPEAKER_05]: But that's not the law.

[00:27:44] [SPEAKER_05]: You can it can be driven.

[00:27:46] [SPEAKER_05]: It can so if you feel like I'm not getting that,

[00:27:49] [SPEAKER_05]: it could be because you're not working

[00:27:52] [SPEAKER_05]: and it's 30 hours per week.

[00:27:55] [SPEAKER_05]: So if you hit 59 in two weeks, you're still only getting the one hour.

[00:28:01] [SPEAKER_05]: Some companies do prorate and will give you the fractions of the hour.

[00:28:07] [SPEAKER_05]: But is that consider yourself a benefit

[00:28:11] [SPEAKER_05]: because that is not the law.

[00:28:13] [SPEAKER_05]: If it's to the letter of the law, I only have to give you

[00:28:16] [SPEAKER_05]: for every 30 hours you work.

[00:28:18] [SPEAKER_05]: So you have to get 60 to get two hours.

[00:28:20] [SPEAKER_05]: You see what I'm saying?

[00:28:22] [SPEAKER_05]: Yeah, I get what you're saying.

[00:28:23] [SPEAKER_05]: Yeah. Keep that in mind.

[00:28:24] [SPEAKER_02]: And so to your point about San Francisco as of January this year, 2024,

[00:28:30] [SPEAKER_02]: the law in San Francisco does require that employers provide

[00:28:34] [SPEAKER_02]: and allow employees to use at least 40 hours or five

[00:28:38] [SPEAKER_02]: see three days of sick per year.

[00:28:40] [SPEAKER_05]: But they cap it at 40, not 24.

[00:28:42] [SPEAKER_02]: Yeah, it was 24 before January this year.

[00:28:45] [SPEAKER_05]: Yeah, say I knew they I knew one.

[00:28:47] [SPEAKER_05]: I figure, yeah, because I think we had to update.

[00:28:50] [SPEAKER_05]: Yeah. So pass it off to you all for the last three. Yep.

[00:28:54] [SPEAKER_02]: So number four, final wages and wage statements.

[00:28:58] [SPEAKER_02]: So final pay, man.

[00:29:00] [SPEAKER_02]: Look, if you're as an employee in California,

[00:29:02] [SPEAKER_02]: you must receive your final paycheck immediately.

[00:29:05] [SPEAKER_02]: If you quit without notice, your final paycheck has to be paid

[00:29:08] [SPEAKER_02]: within three days or 72 hours.

[00:29:11] [SPEAKER_02]: If your employer fails to pay you on time,

[00:29:13] [SPEAKER_02]: you are entitled to waiting time

[00:29:16] [SPEAKER_02]: penalties, which is the equivalent to one day of wages

[00:29:19] [SPEAKER_02]: for each day that your check is late up to 30 days.

[00:29:23] [SPEAKER_02]: So that means you can get eight hours one day or whatever.

[00:29:29] [SPEAKER_02]: So if you're scheduled for six hours a day and you work 30 hours a week,

[00:29:32] [SPEAKER_02]: and that was one day for you, you'll get that one day

[00:29:36] [SPEAKER_02]: up to 30 days.

[00:29:37] [SPEAKER_02]: So 30 times six is 180.

[00:29:42] [SPEAKER_02]: If your employer refuses to pay you, so our penalties out there.

[00:29:47] [SPEAKER_02]: Wage statements.

[00:29:48] [SPEAKER_02]: Your pay stub must include details like your total hours worked,

[00:29:52] [SPEAKER_02]: your gross wages, net wages, all your deductions and applicable hourly rates.

[00:29:58] [SPEAKER_02]: If these details are missing or incorrect,

[00:30:01] [SPEAKER_02]: you can file a claim with the labor commissioner.

[00:30:05] [SPEAKER_02]: So you have a right as an employee to do that.

[00:30:07] [SPEAKER_02]: Number five, there's protection against wage theft.

[00:30:12] [SPEAKER_02]: So there's a Wage Steff Prevention Act that was passed.

[00:30:16] [SPEAKER_02]: You have the right to be informed about your wage rate,

[00:30:20] [SPEAKER_02]: including any changes that occur.

[00:30:22] [SPEAKER_02]: Your employer must provide you with written notice

[00:30:25] [SPEAKER_02]: that includes your rate of pay, the basis for pay,

[00:30:29] [SPEAKER_02]: whether that's a salary hourly or commission, et cetera.

[00:30:33] [SPEAKER_02]: And any allowances like that you may receive, like any mills, lodging,

[00:30:37] [SPEAKER_02]: those type of things.

[00:30:38] [SPEAKER_02]: And if you have to report any violations,

[00:30:40] [SPEAKER_02]: if you believe your employer is not paying you correctly,

[00:30:44] [SPEAKER_02]: again, you can file a claim with the California Labor

[00:30:46] [SPEAKER_02]: Commissioner's Office because you are protected against any retaliation

[00:30:51] [SPEAKER_02]: for reporting violations as well.

[00:30:54] [SPEAKER_02]: So California is saying, hey, we have your back.

[00:30:57] [SPEAKER_02]: You tell on them.

[00:30:59] [SPEAKER_02]: Run, tell that if you know that, you know.

[00:31:02] [SPEAKER_02]: Number six, before we move on to the payroll professional piece of this

[00:31:06] [SPEAKER_02]: classification and your employee rights.

[00:31:10] [SPEAKER_02]: So that this part is saying whether you're an independent

[00:31:14] [SPEAKER_02]: contractor versus an employee, right?

[00:31:16] [SPEAKER_02]: So California law uses the ABC ABC test to determine

[00:31:20] [SPEAKER_02]: if you're an independent contractor or an employee.

[00:31:24] [SPEAKER_02]: If you if you have been misclassified as a contractor,

[00:31:28] [SPEAKER_02]: you may be missing out on those important benefits like overtime,

[00:31:32] [SPEAKER_02]: unemployment insurance and workers comp.

[00:31:35] [SPEAKER_02]: Or if you're if you've been classified as exempt

[00:31:40] [SPEAKER_02]: and which is which means you're not entitled to overtime pay,

[00:31:45] [SPEAKER_02]: you must and to be classified as exempt,

[00:31:49] [SPEAKER_02]: you have to meet certain salary and job duty requirements.

[00:31:52] [SPEAKER_02]: But if you don't meet those requirements,

[00:31:55] [SPEAKER_02]: you may be entitled to overtime pay, even if your employer says

[00:31:58] [SPEAKER_02]: you are exempt, your employer has to follow those tests

[00:32:02] [SPEAKER_02]: and make sure that you have met all those requirements.

[00:32:05] [SPEAKER_02]: They just can't say, oh, because we want you to be salaried.

[00:32:08] [SPEAKER_02]: We're going to pay you a salary. Right.

[00:32:10] [SPEAKER_02]: That's something you want to look out for as an employee.

[00:32:13] [SPEAKER_02]: And California does that, but other states do that as well.

[00:32:16] [SPEAKER_02]: And so it's something you want to definitely look out for.

[00:32:18] [SPEAKER_02]: We have some helpful links in here.

[00:32:20] [SPEAKER_02]: We have the California commissioner,

[00:32:22] [SPEAKER_02]: labor commissioner's office website.

[00:32:25] [SPEAKER_02]: We have a link for that.

[00:32:26] [SPEAKER_02]: We have a legal aid website that we have here,

[00:32:29] [SPEAKER_02]: we have the Department of Fair Employment and Housing site on here

[00:32:34] [SPEAKER_02]: that will include in the show notes.

[00:32:37] [SPEAKER_02]: So we're going to go into the second piece,

[00:32:40] [SPEAKER_02]: which is for the payroll professionals and how you can navigate

[00:32:44] [SPEAKER_02]: California payroll.

[00:32:45] [SPEAKER_02]: Now, we may talk about some of the same stuff that we covered

[00:32:48] [SPEAKER_02]: for the employees, but it's going to be from the payroll professional aspect.

[00:32:52] [SPEAKER_02]: Right. So there's six here.

[00:32:55] [SPEAKER_02]: Do you want to do the same thing?

[00:32:56] [SPEAKER_02]: That's the first three. And then I finish it out.

[00:32:58] [SPEAKER_05]: Yeah. Yeah. So far, payroll pros. Right.

[00:33:03] [SPEAKER_05]: Same thing. Minimum wage compliance.

[00:33:04] [SPEAKER_05]: We have to have as of 2024, California's minimum wage change.

[00:33:09] [SPEAKER_05]: You need to do your audits. Right.

[00:33:12] [SPEAKER_05]: And now look, I'll get a little grander because it's the same thing.

[00:33:16] [SPEAKER_05]: But from the payroll pros perspective, you want to audit

[00:33:20] [SPEAKER_05]: a report with. Your employee,

[00:33:24] [SPEAKER_05]: the wage and the city they're in

[00:33:27] [SPEAKER_05]: and then bring up some build it into your spreadsheet for per city.

[00:33:33] [SPEAKER_05]: What the minimum wage is.

[00:33:35] [SPEAKER_05]: Go out and go to the Cali site.

[00:33:36] [SPEAKER_05]: If you don't have the payroll source from payroll or

[00:33:39] [SPEAKER_05]: or if you're not connected to Sherm or there's another good site

[00:33:43] [SPEAKER_05]: out there called Mineral that is compliance driven. Right.

[00:33:48] [SPEAKER_05]: Meaning if you have those sources, then you can feel fairly safe.

[00:33:52] [SPEAKER_05]: I always double check because you never know.

[00:33:54] [SPEAKER_05]: Because look, this stuff.

[00:33:57] [SPEAKER_05]: And I look, I say this a lot.

[00:33:59] [SPEAKER_05]: The those sources payroll or which is an amazing source.

[00:34:03] [SPEAKER_05]: Don't get me wrong.

[00:34:04] [SPEAKER_05]: Mineral, Sherm and there's probably a few more.

[00:34:08] [SPEAKER_05]: ADP websites, thing like that.

[00:34:11] [SPEAKER_05]: They may not it may not.

[00:34:13] [SPEAKER_05]: You just got to double check it to make sure it's up to the up to date.

[00:34:16] [SPEAKER_05]: If you're a day late, you're going to be a dollar short literally.

[00:34:19] [SPEAKER_05]: So as a payroll pro, I think we should be building out those audits.

[00:34:24] [SPEAKER_05]: So that when you're doing minimum wage, you can't just check it by the state.

[00:34:28] [SPEAKER_05]: You have to check it by the city for California.

[00:34:31] [SPEAKER_05]: Right.

[00:34:32] [SPEAKER_05]: Because I get I've been caught out there in the past.

[00:34:34] [SPEAKER_05]: Oh, wait, is the wrong one.

[00:34:37] [SPEAKER_05]: So that's the call out for the employee.

[00:34:40] [SPEAKER_05]: And then you have tipped employees as well

[00:34:43] [SPEAKER_05]: that have different credits and that could also be state local driven.

[00:34:50] [SPEAKER_05]: Right.

[00:34:51] [SPEAKER_05]: So you want to if you're in an organization that's tipped driven,

[00:34:54] [SPEAKER_05]: you want to make sure you're following that overtime rules for Cali.

[00:34:58] [SPEAKER_02]: Same thing.

[00:35:00] [SPEAKER_02]: Hold on, hold on, hold on.

[00:35:01] [SPEAKER_02]: I want to make sure that if you're new to California

[00:35:03] [SPEAKER_02]: payroll as a payroll professional employees,

[00:35:07] [SPEAKER_02]: you want to make sure because and the state of California tipped

[00:35:11] [SPEAKER_02]: employees must receive their full state or local minimum wage.

[00:35:15] [SPEAKER_02]: Plus their tips.

[00:35:17] [SPEAKER_02]: Oh, other states, they have a lower tipped minimum wage.

[00:35:21] [SPEAKER_05]: Yes.

[00:35:21] [SPEAKER_05]: Good call out.

[00:35:22] [SPEAKER_05]: Yep.

[00:35:23] [SPEAKER_05]: So, right.

[00:35:24] [SPEAKER_05]: So if you're a payroll pro there, make sure your folks aren't getting

[00:35:29] [SPEAKER_05]: shorted for that you have the right minimum wages per per Waltz worth.

[00:35:34] [SPEAKER_05]: Thank you, sir.

[00:35:35] [SPEAKER_05]: And then for the overtime rules again, same deal, right?

[00:35:39] [SPEAKER_05]: It's the overtime by day, by week, whatever is most beneficial.

[00:35:43] [SPEAKER_05]: But keep in mind the seventh consecutive work day in a week.

[00:35:48] [SPEAKER_05]: And what those overtime rules, the 12 hours in a day in a rule, right?

[00:35:54] [SPEAKER_05]: Is this even applicable to your business, right?

[00:35:57] [SPEAKER_05]: If you don't have employees that ever work 12 hours, then okay, great.

[00:36:01] [SPEAKER_05]: You don't have to work or run a lot of audits, right?

[00:36:03] [SPEAKER_05]: You could probably just start with the hours to make sure

[00:36:05] [SPEAKER_05]: nobody's working over 12 and then if they do, I got now, I got to go

[00:36:09] [SPEAKER_05]: look at my California rate for 12 in a day, right?

[00:36:13] [SPEAKER_05]: So I think as payroll pros, you just got to be mindful of what type

[00:36:16] [SPEAKER_05]: of audits you need to run for your systems based on where you are.

[00:36:21] [SPEAKER_05]: For the overtime again, eight in a day, 40 in a week or whatever is more

[00:36:26] [SPEAKER_05]: beneficial, like Waltz said, seventh consecutive day, double time for the

[00:36:31] [SPEAKER_05]: 12 hours, eighth consecutive day, the seventh consecutive day as well.

[00:36:37] [SPEAKER_05]: And I feel like there's a sixth and seventh, but don't quote me.

[00:36:41] [SPEAKER_05]: And then calculating the regular rate of pay, the regular rate of pay

[00:36:44] [SPEAKER_05]: includes more than just hourly wage.

[00:36:46] [SPEAKER_05]: It also includes bonuses, commissions and other forms of compensation.

[00:36:52] [SPEAKER_05]: Failing to correctly calculate the regular rate can lead to costly penalties.

[00:36:56] [SPEAKER_05]: So what it, what it's saying is if your hourly employee gets flat pay

[00:37:02] [SPEAKER_05]: amounts in their pay for some other things, and then they hit overtime.

[00:37:09] [SPEAKER_05]: And I think this is a DOL as well.

[00:37:12] [SPEAKER_05]: It's not just Cali.

[00:37:14] [SPEAKER_05]: You have to calculate the increased money to figure out the right overtime.

[00:37:21] [SPEAKER_05]: It's a, it's a, and it's an additional, um, complex calculation.

[00:37:27] [SPEAKER_02]: So think about the support of this as a payroll pro and how it could impact

[00:37:32] [SPEAKER_02]: you, your company, and you know, in the environment there, right?

[00:37:37] [SPEAKER_02]: So in California employers that don't pay overtime at the proper

[00:37:41] [SPEAKER_02]: rate or on time may face penalties up to $4,000 per employee.

[00:37:48] [SPEAKER_02]: I've just Googled this.

[00:37:49] [SPEAKER_02]: I'd exactly, you said penalties.

[00:37:50] [SPEAKER_02]: I wanted to put it out there and put that statistic out there.

[00:37:53] [SPEAKER_02]: If you work at a large company and you have 5,000, 10,000 employees

[00:37:57] [SPEAKER_02]: and like a bunch of them are non-exempt or OT eligible employees.

[00:38:02] [SPEAKER_02]: Let's say out of that 10,000, half of them are OT eligible and nobody's

[00:38:07] [SPEAKER_02]: getting paid OT correctly.

[00:38:09] [SPEAKER_02]: It can happen.

[00:38:10] [SPEAKER_02]: Yep.

[00:38:10] [SPEAKER_02]: And as I be able to pay the proper rate, you may face a fine up to $4,000 per.

[00:38:15] [SPEAKER_02]: Employee.

[00:38:16] [SPEAKER_02]: So 4,000 times 5,000 is a lot of money.

[00:38:19] [SPEAKER_05]: Yeah.

[00:38:20] [SPEAKER_05]: And yep.

[00:38:20] [SPEAKER_05]: And that's a great call out and folks might be saying, um, um, oh, I don't

[00:38:26] [SPEAKER_05]: w we're not going to get audited.

[00:38:27] [SPEAKER_05]: The chances of us getting audited and blah, blah, blah.

[00:38:30] [SPEAKER_05]: Not true.

[00:38:31] [SPEAKER_05]: There's lawyers out there that are looking for, woo 20 million.

[00:38:37] [SPEAKER_05]: You have 20 billion, 20 million.

[00:38:39] [SPEAKER_05]: Goodness gracious.

[00:38:41] [SPEAKER_05]: There are lawyers out there that are looking for these things.

[00:38:45] [SPEAKER_05]: They're looking, they're dying for an employee to call them with an issue

[00:38:50] [SPEAKER_05]: because they know there's a ton of money to be had in the suing like

[00:38:55] [SPEAKER_05]: class action suits against a company.

[00:38:57] [SPEAKER_05]: This stuff put your whole company out of business.

[00:39:00] [SPEAKER_05]: So, and as a payroll pro, guess what?

[00:39:02] [SPEAKER_05]: Guess who's going to get blamed.

[00:39:03] [SPEAKER_05]: Oh, you guys didn't catch it.

[00:39:06] [SPEAKER_05]: Oh, HR payroll.

[00:39:07] [SPEAKER_05]: Y'all didn't catch this.

[00:39:08] [SPEAKER_05]: Come on.

[00:39:09] [SPEAKER_05]: This is about the audits that you should have waving the red flag, documenting

[00:39:13] [SPEAKER_05]: that you've sent it somewhere to someone at some point because it's a, yeah,

[00:39:18] [SPEAKER_05]: it's a bit of CYA, but for me, like our job, I dislike that in our job

[00:39:24] [SPEAKER_05]: because like, yeah, literally it's, it's not see it's cover the company's

[00:39:29] [SPEAKER_05]: butt, not just your butt.

[00:39:31] [SPEAKER_05]: You're trying to cover the company's butt in that instance.

[00:39:34] [SPEAKER_05]: You're not going to, yeah, you may lose a job.

[00:39:36] [SPEAKER_05]: You get another job with the owners, the whole business.

[00:39:39] [SPEAKER_05]: Like that's a whole bigger deal.

[00:39:40] [SPEAKER_05]: So it's not just, oh, I'm CYA and no, and that's some, that's maybe even how

[00:39:44] [SPEAKER_05]: you frame it to whoever they may be like, Oh, you always reporting some gas.

[00:39:49] [SPEAKER_05]: I'm trying to be, what do I say all the time?

[00:39:52] [SPEAKER_05]: We're not the fiduciary responsibility, but we have fiduciary

[00:39:56] [SPEAKER_05]: responsibility to the company.

[00:39:59] [SPEAKER_05]: Right.

[00:39:59] [SPEAKER_05]: We're dealing with these things.

[00:40:01] [SPEAKER_05]: This is when you run your audits.

[00:40:03] [SPEAKER_05]: As long as you're letting somebody know you are doing your piece.

[00:40:07] [SPEAKER_05]: Yeah, you may not be the leader.

[00:40:09] [SPEAKER_05]: And on the flip side of that, you can't get mad because your leaders

[00:40:11] [SPEAKER_05]: aren't doing something about it because they could be more risk tolerant

[00:40:15] [SPEAKER_05]: than you are comfortable with.

[00:40:17] [SPEAKER_01]: Yep.

[00:40:18] [SPEAKER_05]: Is what it is.

[00:40:19] [SPEAKER_05]: It is what it is.

[00:40:19] [SPEAKER_05]: All you got to do is raise your red, raise your, raise the red flag,

[00:40:23] [SPEAKER_05]: raise your hand, put it out there.

[00:40:25] [SPEAKER_05]: And then the last one for me before I pass the mic to wall is the

[00:40:30] [SPEAKER_05]: meal and rest breaks.

[00:40:33] [SPEAKER_05]: Same thing, same things apply, right?

[00:40:36] [SPEAKER_05]: The, but what as payroll pros, what you need to know is there are good

[00:40:42] [SPEAKER_05]: systems that you can build the automation into it so that when your

[00:40:48] [SPEAKER_05]: employee hits the five hour mark, like they automatically get a meal break or

[00:40:55] [SPEAKER_05]: it's automatically given to them.

[00:40:57] [SPEAKER_05]: Like there's automation in it.

[00:40:59] [SPEAKER_05]: But you have to be careful because it could be more of a heartache

[00:41:05] [SPEAKER_05]: than it's worth, right?

[00:41:08] [SPEAKER_05]: Because it's all that.

[00:41:09] [SPEAKER_05]: Cause that's what it is.

[00:41:10] [SPEAKER_05]: It's not, it's the, it's the penalty that's automated.

[00:41:13] [SPEAKER_05]: It hits the five hours.

[00:41:15] [SPEAKER_05]: The system recognizes that there was no 30 minute meal break in that five

[00:41:19] [SPEAKER_05]: hour or after five hour period, it automatically adds two hours back to the

[00:41:23] [SPEAKER_05]: employee.

[00:41:24] [SPEAKER_05]: Oh my gosh.

[00:41:25] [SPEAKER_05]: I put the automation in once and yo, I got such an upheaval of pushback on it.

[00:41:34] [SPEAKER_05]: Right?

[00:41:35] [SPEAKER_05]: Yeah.

[00:41:36] [SPEAKER_05]: Because they were like, what would that's killing the budget, right?

[00:41:39] [SPEAKER_05]: It was in retail.

[00:41:40] [SPEAKER_05]: So they were, it was hurting the budget.

[00:41:42] [SPEAKER_05]: PNLs were going crazy in the red.

[00:41:45] [SPEAKER_03]: They were like, Oh my God, what's going on?

[00:41:47] [SPEAKER_05]: And that's actually what prompted the rule that I learned.

[00:41:51] [SPEAKER_05]: And it's a learning, it's a learning experience, right?

[00:41:54] [SPEAKER_05]: I learned that's when I learned that employees can sign off on it, weaving it

[00:41:59] [SPEAKER_05]: off.

[00:42:00] [SPEAKER_05]: No, no, we don't want it.

[00:42:01] [SPEAKER_05]: We didn't cause then that's how I learned.

[00:42:03] [SPEAKER_05]: Wait, they didn't take their break there in the middle of a sale, blah,

[00:42:06] [SPEAKER_05]: blah, blah.

[00:42:07] [SPEAKER_02]: So I think there's even cases though.

[00:42:09] [SPEAKER_02]: I think so.

[00:42:10] [SPEAKER_02]: I still think there's cases though for employees that even though if they

[00:42:14] [SPEAKER_02]: sign it and they signed the waiver, but they still get up a reset five

[00:42:19] [SPEAKER_02]: fifth hour, I think they're still, I could be wrong.

[00:42:23] [SPEAKER_02]: So I could be wrong.

[00:42:24] [SPEAKER_02]: So just let me know if I'm wrong here or anybody listening.

[00:42:27] [SPEAKER_02]: But my understanding of it is that they still may be entitled to that

[00:42:30] [SPEAKER_02]: payment, even if they sign something, even if it's fully executed.

[00:42:35] [SPEAKER_05]: Yeah.

[00:42:36] [SPEAKER_05]: Then it wouldn't then.

[00:42:37] [SPEAKER_05]: Yeah.

[00:42:38] [SPEAKER_05]: We'd have to look it up, folks.

[00:42:40] [SPEAKER_05]: I think the point is make sure you're ironclad around the law.

[00:42:44] [SPEAKER_05]: Yeah.

[00:42:44] [SPEAKER_05]: I guess at that point, you really want an attorney to chime in, you

[00:42:48] [SPEAKER_05]: know, and a specialist in Cali to chime in on it.

[00:42:54] [SPEAKER_05]: So point is maybe don't put the automation in.

[00:42:58] [SPEAKER_05]: If, if it's causing that much, you may have to manually do these things and

[00:43:02] [SPEAKER_05]: look back on it and do it in arrears.

[00:43:04] [SPEAKER_05]: Right?

[00:43:05] [SPEAKER_05]: Look at the law, see how quickly that has to be paid out.

[00:43:07] [SPEAKER_05]: Cause if you have a pay period, then you could be like, all right, I'm

[00:43:10] [SPEAKER_05]: going to look at the pay period in arrears when the payroll passes.

[00:43:14] [SPEAKER_05]: Or if you're in processing, you have time in your processing window

[00:43:17] [SPEAKER_05]: that you can look at it and say, okay, we have violations.

[00:43:22] [SPEAKER_05]: What do we do?

[00:43:23] [SPEAKER_02]: Or, or if you want to look at it from a different view, you could, if

[00:43:28] [SPEAKER_02]: you do automate it, you could use that to shore up education and training

[00:43:33] [SPEAKER_02]: for the people that need it and how to end managing those time cards

[00:43:38] [SPEAKER_02]: and those system things better.

[00:43:40] [SPEAKER_02]: That could be off to there.

[00:43:42] [SPEAKER_05]: So that, I think that's the biggest call out for the pros around

[00:43:45] [SPEAKER_05]: the meal breaks and rest breaks.

[00:43:47] [SPEAKER_05]: Yeah.

[00:43:47] [SPEAKER_05]: Is it happening once, first of all, do your audits.

[00:43:51] [SPEAKER_05]: Hey, we're in violation.

[00:43:53] [SPEAKER_05]: Like we're out of compliance.

[00:43:54] [SPEAKER_05]: Cause I did the audit on the payroll.

[00:43:57] [SPEAKER_05]: Look, I just learned this by home.

[00:43:59] [SPEAKER_05]: Here's the law.

[00:44:00] [SPEAKER_05]: I did the audit.

[00:44:01] [SPEAKER_05]: We're out of compliance.

[00:44:02] [SPEAKER_05]: That's the call out for the meal and rest breaks for the pros.

[00:44:06] [SPEAKER_05]: And then I pass it to all for the rest.

[00:44:08] [SPEAKER_02]: All right.

[00:44:09] [SPEAKER_02]: So again, we're covering some of the same things.

[00:44:11] [SPEAKER_02]: Number four is that wage theft prevention act.

[00:44:14] [SPEAKER_02]: So those wage statements, making sure that we are being compliant with those

[00:44:18] [SPEAKER_02]: laws that revolve around the pay stubs and then making sure that they include

[00:44:22] [SPEAKER_02]: those specific information is like the gross wages, the total hours work, those

[00:44:27] [SPEAKER_02]: all deductions, net wages, and all those rates, right?

[00:44:31] [SPEAKER_02]: The timely payment of wages for final pays.

[00:44:34] [SPEAKER_02]: But then the things that can go into with those penalties that can add up,

[00:44:38] [SPEAKER_02]: you know what I'm saying?

[00:44:39] [SPEAKER_02]: If you have a high earner or whatever, they didn't have final check for 30 days

[00:44:45] [SPEAKER_02]: that can add up, you know what I'm saying?

[00:44:48] [SPEAKER_02]: So like, you want to make sure that you do that requirement.

[00:44:51] [SPEAKER_02]: Go ahead.

[00:44:51] [SPEAKER_05]: Hold on real quick.

[00:44:52] [SPEAKER_05]: Yeah.

[00:44:52] [SPEAKER_05]: There's a call out for the, for the gosh, the final pay.

[00:44:55] [SPEAKER_05]: Oh, some of the tools that now exist that didn't exist before are those

[00:45:01] [SPEAKER_05]: on demand payment solutions that folk that we have that exists now, right?

[00:45:06] [SPEAKER_05]: You can push a payment to debit cards.

[00:45:09] [SPEAKER_05]: You can push a payment to a digital wallet if it's set up, but these things

[00:45:13] [SPEAKER_05]: have to be set up in advance.

[00:45:15] [SPEAKER_05]: It may not always be immediate.

[00:45:18] [SPEAKER_05]: Your company may offer the technology and the function, but if you don't

[00:45:21] [SPEAKER_05]: sign up and set it up and implement, then you may not be able to use it that

[00:45:25] [SPEAKER_05]: day and be like, Hey, it's a four week turnaround.

[00:45:28] [SPEAKER_05]: Then you can use it instantly.

[00:45:29] [SPEAKER_05]: Think about those things because you may have the tools,

[00:45:33] [SPEAKER_05]: but you don't have it set up.

[00:45:34] [SPEAKER_02]: That's a great call out.

[00:45:35] [SPEAKER_02]: That's a great call out because one of the pain points, one of the issues

[00:45:39] [SPEAKER_02]: I've experienced in my own career is assuming that the system was set up

[00:45:45] [SPEAKER_02]: properly, assuming that all companies that were under our, under our umbrella

[00:45:50] [SPEAKER_02]: were enrolled in that service thinking that it was done automatically.

[00:45:54] [SPEAKER_02]: And nope, the payroll providers.

[00:45:56] [SPEAKER_02]: Nope.

[00:45:56] [SPEAKER_02]: Sorry.

[00:45:57] [SPEAKER_02]: This was, this wasn't set up for these newer acquisitions that you have.

[00:46:01] [SPEAKER_05]: And you're like, ah, yes.

[00:46:02] [SPEAKER_05]: If yes, if you're in the business of MNA and you're rolling new EINs in new

[00:46:08] [SPEAKER_05]: entities in new pay groups in, and you have to build that checklist to make

[00:46:15] [SPEAKER_05]: sure everything is set up for those shoot.

[00:46:19] [SPEAKER_05]: It could be as easy as this is off topic, but it could be as easy as

[00:46:22] [SPEAKER_05]: you didn't put the location address in so that the live checks go to

[00:46:26] [SPEAKER_05]: that place and assign it to the employees.

[00:46:28] [SPEAKER_05]: Like it's all your setup, right?

[00:46:30] [SPEAKER_05]: Make sure you have good checklists.

[00:46:32] [SPEAKER_05]: Again, if you're in the business of setting up new groups and you're

[00:46:36] [SPEAKER_05]: rolling up and if you're an MNA period, however that looks for you, you

[00:46:41] [SPEAKER_05]: got to have good checklist for integration.

[00:46:43] [SPEAKER_02]: Yep.

[00:46:43] [SPEAKER_05]: Great call out.

[00:46:44] [SPEAKER_02]: Number five.

[00:46:45] [SPEAKER_02]: Yeah.

[00:46:45] [SPEAKER_02]: Number five sick leave requirements, right?

[00:46:48] [SPEAKER_02]: So again, that pay sick leave because California does mandate

[00:46:51] [SPEAKER_02]: the employees accrue pay sick leave at a rate of at least one hour per

[00:46:56] [SPEAKER_02]: 30 hours worked.

[00:46:58] [SPEAKER_02]: And the employers can limit that to 24 hours or three days per year.

[00:47:04] [SPEAKER_02]: But there are some local ordinances that you need, like those cities

[00:47:08] [SPEAKER_02]: like San Francisco or LA who have more generous sick leave requirements.

[00:47:14] [SPEAKER_02]: So pros we need to be aware of those specific local regulations

[00:47:18] [SPEAKER_02]: that may apply, right?

[00:47:21] [SPEAKER_02]: And look, you may have an employee that drives into LA,

[00:47:24] [SPEAKER_02]: will live somewhere else that drives into San Francisco.

[00:47:27] [SPEAKER_02]: And it could be based on where they work, not where they live.

[00:47:31] [SPEAKER_02]: So you want to look at that, right?

[00:47:33] [SPEAKER_02]: Oh, and then the last thing is the classification of employees.

[00:47:37] [SPEAKER_02]: We talked about that being an independent contractor versus an

[00:47:40] [SPEAKER_02]: employee, the codified, they passed a law in 2019 that codified the

[00:47:44] [SPEAKER_02]: ABC test, which determined if an employee was a worker was a

[00:47:50] [SPEAKER_02]: contractor, independent contractor or an employee.

[00:47:54] [SPEAKER_02]: Misclassification can result in or lead to significant penalties.

[00:47:58] [SPEAKER_02]: So look, one of the penalties that you can face and the employees

[00:48:02] [SPEAKER_02]: can face is a penalty of $5,000 to $25,000 per violation for

[00:48:09] [SPEAKER_02]: voluntarily misclassifying an employee as an independent contractor.

[00:48:15] [SPEAKER_02]: So companies could be doing this week.

[00:48:17] [SPEAKER_02]: And our true payroll crime stories, how many people have

[00:48:21] [SPEAKER_02]: stuff knowingly to avoid taxes, to evade, evade it.

[00:48:27] [SPEAKER_02]: Was it evade or avoid?

[00:48:29] [SPEAKER_05]: Aide.

[00:48:29] [SPEAKER_05]: No, they're evading.

[00:48:31] [SPEAKER_05]: They're evading.

[00:48:32] [SPEAKER_05]: They evade those taxes.

[00:48:34] [SPEAKER_05]: Avoid is legal.

[00:48:34] [SPEAKER_05]: Evade is legal.

[00:48:37] [SPEAKER_02]: You know what I'm saying?

[00:48:38] [SPEAKER_02]: So that's a lot of money for every instance that can happen.

[00:48:42] [SPEAKER_02]: Right?

[00:48:42] [SPEAKER_02]: So you want to make sure as a payroll, even if you're not

[00:48:45] [SPEAKER_02]: responsible for it, ask the question as a payroll person.

[00:48:48] [SPEAKER_02]: Say, Hey, could you run this audit for me?

[00:48:50] [SPEAKER_02]: Are we doing this audit?

[00:48:51] [SPEAKER_02]: Are we making sure that our employees are classified correctly in the state?

[00:48:55] [SPEAKER_02]: Because there could be a bunch of fees that could add up.

[00:48:59] [SPEAKER_02]: Think about the costs.

[00:49:00] [SPEAKER_02]: Like the cost is just an employee cost.

[00:49:02] [SPEAKER_02]: There might be attorney fees that go into this liquidated,

[00:49:05] [SPEAKER_02]: liquidated damages, interest and court costs that you may have to

[00:49:09] [SPEAKER_02]: go through that there's litigation.

[00:49:11] [SPEAKER_02]: You know what I'm saying?

[00:49:12] [SPEAKER_05]: Back pay, forget about it.

[00:49:14] [SPEAKER_05]: And then this kind of does or it should, depending on how big your

[00:49:19] [SPEAKER_05]: shop is, it should be more on the HR people, not the payroll processing people.

[00:49:27] [SPEAKER_05]: We got to be careful how we say it because yes, you should be aware of it.

[00:49:32] [SPEAKER_05]: And, but again, you're raising the red flag because the classification

[00:49:35] [SPEAKER_05]: process is a conversation.

[00:49:38] [SPEAKER_05]: It's an interview.

[00:49:40] [SPEAKER_05]: It's a, it's, you have to talk through things because there are

[00:49:43] [SPEAKER_05]: multiple points of how an employee is classified versus a contractor.

[00:49:48] [SPEAKER_05]: So it's not, is sometimes it's beyond our scope.

[00:49:52] [SPEAKER_05]: So just depending on how your shop is built, your organization, your

[00:49:57] [SPEAKER_05]: HR payroll departments are built.

[00:50:00] [SPEAKER_05]: It could, you could be just raising the, as a payroll pro, you're

[00:50:03] [SPEAKER_05]: raising the red, hey, this don't look right, but think about it also.

[00:50:07] [SPEAKER_05]: You may not have any visibility into it because if it's already happening

[00:50:10] [SPEAKER_05]: before you get there, that means they're already on a AP side.

[00:50:14] [SPEAKER_05]: You don't even know as a payroll pro who's being paid by AP.

[00:50:21] [SPEAKER_02]: And look, you made a good point.

[00:50:23] [SPEAKER_02]: You made a good point when you said the statement earlier, I'm not saying

[00:50:26] [SPEAKER_02]: they're verbatim, but you said they're going to ask you why didn't you catch this?

[00:50:32] [SPEAKER_02]: It may not be you, they may ask you or somebody else, why didn't you catch this team?

[00:50:36] [SPEAKER_02]: Yep.

[00:50:36] [SPEAKER_02]: And the response you give can't be that's just how it's always been done.

[00:50:41] [SPEAKER_02]: No.

[00:50:41] [SPEAKER_05]: You know what I've been learning and been challenged with at this stage of my

[00:50:48] [SPEAKER_05]: career is how to articulate things properly and well, we know the answer

[00:50:54] [SPEAKER_05]: sometimes, but it's so ingrained in like our answers almost because that's

[00:51:01] [SPEAKER_05]: not articulating anything.

[00:51:02] [SPEAKER_05]: No, it's not.

[00:51:03] [SPEAKER_05]: You know what I mean?

[00:51:03] [SPEAKER_05]: For someone who doesn't know this content and stuff, just because you

[00:51:09] [SPEAKER_05]: say so is not an answer.

[00:51:11] [SPEAKER_05]: Why is it this way?

[00:51:14] [SPEAKER_05]: And it takes time, bro.

[00:51:15] [SPEAKER_05]: And that's been a lot of my struggle and challenge recently is like how to

[00:51:21] [SPEAKER_05]: articulate things properly so that you're explaining to your colleagues

[00:51:26] [SPEAKER_05]: and your leaders, this is why we do things the way we do it.

[00:51:30] [SPEAKER_05]: And this is why it has to be done this way.

[00:51:32] [SPEAKER_05]: This is why it's important.

[00:51:34] [SPEAKER_05]: This is why it's a compliant and why are we classifying this?

[00:51:40] [SPEAKER_05]: Because there's a potential penalty, because there's a potential audit

[00:51:44] [SPEAKER_05]: that can be done.

[00:51:46] [SPEAKER_05]: It's a potential, but that's articulating it.

[00:51:49] [SPEAKER_05]: You know what I mean?

[00:51:50] [SPEAKER_05]: Because it's not a good answer.

[00:51:53] [SPEAKER_05]: And then real quick before we move on, and I just want to circle back

[00:51:57] [SPEAKER_05]: to the sick leave part for the payroll pros, remember what I said,

[00:52:00] [SPEAKER_05]: check your systems to see how it's calculating that one hour for every 30.

[00:52:05] [SPEAKER_05]: Are you being more generous?

[00:52:06] [SPEAKER_05]: Look, I'm not saying that we should be less generous, but if your company is

[00:52:11] [SPEAKER_05]: looking to save money, that could be a place to save it because if it's

[00:52:16] [SPEAKER_05]: grant or it's a place where you can get a win to the employees and you

[00:52:20] [SPEAKER_05]: can articulate it to your employee workforce, Hey, we actually go above

[00:52:25] [SPEAKER_05]: and beyond the state mandate and we grant you more benefit than the law allows.

[00:52:32] [SPEAKER_05]: So it's all about how you articulate it, right?

[00:52:34] [SPEAKER_05]: If you're an, you're in a payroll pro and HR, that's an easy win.

[00:52:38] [SPEAKER_05]: So say, Hey, this is a benefit that we don't have to give you, but

[00:52:42] [SPEAKER_05]: we do give you, we give you more than the calculation requires.

[00:52:46] [SPEAKER_05]: And then again, yeah, no doubt.

[00:52:48] [SPEAKER_05]: And just classifications again, classifications.

[00:52:52] [SPEAKER_05]: It's a teamwork effort.

[00:52:53] [SPEAKER_05]: If you happen to notice something on the payroll side, because again, if folks

[00:52:57] [SPEAKER_05]: are already being paid as a 10 99 through AP, you have no visibility.

[00:53:02] [SPEAKER_05]: So that's the answer to circle back to what you just said.

[00:53:04] [SPEAKER_05]: How come you didn't catch it?

[00:53:06] [SPEAKER_05]: We don't have any visibility into 10 99 employees.

[00:53:09] [SPEAKER_05]: They're paid from a different team.

[00:53:11] [SPEAKER_05]: We were unaware of this fact.

[00:53:13] [SPEAKER_02]: Yeah.

[00:53:14] [SPEAKER_02]: See what happened is not a good answer.

[00:53:16] [SPEAKER_05]: See what happened was is not a good answer.

[00:53:18] [SPEAKER_05]: Right.

[00:53:19] [SPEAKER_05]: Exactly right.

[00:53:20] [SPEAKER_05]: Saying, I don't know in a very educated or articulate way.

[00:53:25] [SPEAKER_05]: There's a different way is, Oh, you know what I mean?

[00:53:29] [SPEAKER_05]: Exactly.

[00:53:30] [SPEAKER_05]: Cause you, cause then now it seems like you should have known, but if I

[00:53:34] [SPEAKER_05]: articulated it in a way that says, Hey, that we have, we don't have

[00:53:38] [SPEAKER_05]: any visibility into these payments.

[00:53:42] [SPEAKER_05]: It's not our department.

[00:53:43] [SPEAKER_05]: We're not privy to that data or those processes.

[00:53:48] [SPEAKER_05]: We pay W two employees.

[00:53:50] [SPEAKER_05]: Payroll does not issue 10 99s or the payments that contribute to the document.

[00:53:56] [SPEAKER_05]: Now it's more articulate now.

[00:53:58] [SPEAKER_05]: Okay.

[00:53:58] [SPEAKER_05]: I'm asking the wrong people.

[00:53:59] [SPEAKER_05]: I got to go ask AP now.

[00:54:01] [SPEAKER_05]: I got to go ask HR now.

[00:54:04] [SPEAKER_05]: Really?

[00:54:04] [SPEAKER_05]: Right.

[00:54:05] [SPEAKER_05]: HR, because that's, that has been a recurring theme of HR is we want

[00:54:10] [SPEAKER_05]: HR to track all the payments that we make to people.

[00:54:14] [SPEAKER_05]: Why?

[00:54:15] [SPEAKER_05]: Because now they have somebody to blame if they're, if employee

[00:54:19] [SPEAKER_05]: classification is wrong or rather contractor employee

[00:54:24] [SPEAKER_05]: classification is wrong.

[00:54:26] [SPEAKER_05]: Who owns it?

[00:54:27] [SPEAKER_05]: That's what companies are realizing more and more these days is wait a

[00:54:30] [SPEAKER_05]: minute, it's true.

[00:54:32] [SPEAKER_05]: HR should have visibility over this.

[00:54:34] [SPEAKER_05]: I'm my back, man.

[00:54:36] [SPEAKER_05]: Almost done.

[00:54:37] [SPEAKER_02]: You're good, man.

[00:54:38] [SPEAKER_02]: You're good.

[00:54:38] [SPEAKER_02]: That was a good call out room.

[00:54:40] [SPEAKER_02]: So before we conclude this episode, as always, we're going to finish it

[00:54:44] [SPEAKER_02]: off with a safe talk question.

[00:54:47] [SPEAKER_02]: So Brian, do you think that the state of California is too employee centric?

[00:54:56] [SPEAKER_03]: No.

[00:54:57] [SPEAKER_03]: What do you think?

[00:54:59] [SPEAKER_03]: No.

[00:55:00] [SPEAKER_03]: Yeah.

[00:55:01] [SPEAKER_03]: I don't know.

[00:55:01] [SPEAKER_03]: I don't think at all.

[00:55:03] [SPEAKER_02]: I think I do.

[00:55:04] [SPEAKER_02]: I think they do everything perfectly.

[00:55:06] [SPEAKER_02]: Probably not.

[00:55:07] [SPEAKER_02]: No, but I think they do stuff focused for the employee in which I think a

[00:55:12] [SPEAKER_02]: lot more states could learn from.

[00:55:14] [SPEAKER_02]: And probably possibly do it better.

[00:55:17] [SPEAKER_05]: Is it hard to be on the backend of administering these rules and then?

[00:55:24] [SPEAKER_05]: Yes, it is.

[00:55:25] [SPEAKER_05]: It is hard as a practitioner, as a leader, as a domain expert

[00:55:30] [SPEAKER_05]: that has to service California.

[00:55:33] [SPEAKER_05]: Yes, it's hard.

[00:55:35] [SPEAKER_05]: It's not easy to do these things.

[00:55:37] [SPEAKER_05]: It's not easy to keep up with all of the regulations on it, but it's

[00:55:42] [SPEAKER_05]: what grounds me in it is that this is what's best for our employees.

[00:55:47] [SPEAKER_05]: Yeah.

[00:55:48] [SPEAKER_05]: And too often, employees are getting burnt across the country.

[00:55:52] [SPEAKER_05]: Minimum wage is federal minimum wage is what still 725.

[00:55:57] [SPEAKER_05]: Teachers I'm seeing, I'm literally seeing some of the most amazing

[00:56:03] [SPEAKER_05]: teachers that I've seen leave the business.

[00:56:10] [SPEAKER_05]: Teachers that my kids loved and impacted they're leaving because

[00:56:15] [SPEAKER_05]: there's not enough money.

[00:56:16] [SPEAKER_02]: Look, look, 725 for federal minimum wage is crazy.

[00:56:21] [SPEAKER_02]: There's some towns in California that it's 729 per gallon for gas.

[00:56:27] [SPEAKER_05]: Yeah.

[00:56:28] [SPEAKER_05]: It's daycare.

[00:56:31] [SPEAKER_03]: Like the folks who are taking care of our children.

[00:56:36] [SPEAKER_05]: Hold on.

[00:56:36] [SPEAKER_05]: Charlie, get down.

[00:56:38] [SPEAKER_05]: It's food time.

[00:56:39] [SPEAKER_05]: Take food from the table.

[00:56:41] [SPEAKER_02]: Get down on it.

[00:56:42] [SPEAKER_05]: Get down.

[00:56:43] [SPEAKER_05]: Yeah.

[00:56:44] [SPEAKER_05]: So yeah, I mean, no, I don't all that.

[00:56:46] [SPEAKER_05]: I don't think they're too employee centric at all again.

[00:56:50] [SPEAKER_05]: And I know payroll pros are like, what?

[00:56:51] [SPEAKER_04]: Oh my gosh.

[00:56:52] [SPEAKER_04]: California is so tough.

[00:56:53] [SPEAKER_04]: Yeah, it is tough.

[00:56:55] [SPEAKER_05]: It is.

[00:56:55] [SPEAKER_05]: But it's we're also employees.

[00:57:01] [SPEAKER_02]: Anything I may not be saying the verbatim or saying anything

[00:57:04] [SPEAKER_02]: worth having is words.

[00:57:06] [SPEAKER_02]: What?

[00:57:07] [SPEAKER_05]: Oh, nothing.

[00:57:08] [SPEAKER_02]: Nothing worth having.

[00:57:10] [SPEAKER_02]: Nothing worth having.

[00:57:11] [SPEAKER_02]: It's easy.

[00:57:12] [SPEAKER_02]: Some way.

[00:57:12] [SPEAKER_05]: Yeah.

[00:57:13] [SPEAKER_05]: Yeah, exactly right.

[00:57:15] [SPEAKER_05]: It's not easy, but I don't know.

[00:57:17] [SPEAKER_05]: I don't think they are at all.

[00:57:18] [SPEAKER_05]: Yeah.

[00:57:19] [SPEAKER_05]: No.

[00:57:19] [SPEAKER_05]: Yeah.

[00:57:20] [SPEAKER_05]: When I saw it early, I was like, Nope.

[00:57:23] [SPEAKER_05]: And the conversation, like some of our safe talks are hard.

[00:57:27] [SPEAKER_05]: Some of it is so great area and I'm sure politicians and business

[00:57:31] [SPEAKER_05]: folks will come, will have plenty to say about it and all that.

[00:57:36] [SPEAKER_05]: That's fine.

[00:57:37] [SPEAKER_05]: I get it.

[00:57:38] [SPEAKER_05]: You know what I mean?

[00:57:39] [SPEAKER_05]: It doesn't stop people from growing in Cali.

[00:57:42] [SPEAKER_05]: Doesn't stop you from starting a business in Cali.

[00:57:44] [SPEAKER_05]: Doesn't stop you from buying that business in Cali, right?

[00:57:48] [SPEAKER_05]: If you have so much to say about it, don't do business in California.

[00:57:52] [SPEAKER_05]: And that's not happening.

[00:57:53] [SPEAKER_05]: Silicon Valley.

[00:57:55] [SPEAKER_05]: It doesn't, Apple is based in Cali, right?

[00:57:57] [SPEAKER_05]: And my biggest businesses in the world are based out of California.

[00:58:01] [SPEAKER_05]: So which is probably why I can't, most employees, so they need the

[00:58:05] [SPEAKER_05]: most protection.

[00:58:07] [SPEAKER_05]: Yeah, man.

[00:58:08] [SPEAKER_05]: On that note, we love you.

[00:58:11] [SPEAKER_05]: I'm feeling, I think I see a new format forming, right?

[00:58:16] [SPEAKER_05]: We don't have, we it's developing right in front of everybody's eyes

[00:58:19] [SPEAKER_05]: and ears, how we can talk about things, the same subject, but talk

[00:58:24] [SPEAKER_05]: about it for the employee and talk about it for the payroll pro behind

[00:58:27] [SPEAKER_05]: the scenes.

[00:58:29] [SPEAKER_04]: I love you, man.

[00:58:30] [SPEAKER_04]: Me too.

[00:58:31] [SPEAKER_04]: All right, bro.

[00:58:32] [SPEAKER_04]: Peace.

[00:58:38] [SPEAKER_01]: Before we sign off, here are a couple of quick things.

[00:58:42] [SPEAKER_01]: Don't forget to follow it's about payroll on LinkedIn and it's about

[00:58:45] [SPEAKER_01]: your paycheck on Facebook and TikTok.

[00:58:49] [SPEAKER_05]: Thank you for being part of our payroll community and thank you

[00:58:52] [SPEAKER_05]: for being a part of this journey with us until the next time.

[00:58:56] [SPEAKER_05]: Keep learning, keep growing, and most importantly, keep going.