California! The Basics for Employees and Payroll Pros

[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.

[00:00:15] [SPEAKER_02]: 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.

[00:00:22] [SPEAKER_05]: So right.

[00:00:22] [SPEAKER_05]: So if you're a payroll pro there, make sure your folks aren't getting

[00:00:26] [SPEAKER_05]: shorted for that.

[00:00:29] [SPEAKER_05]: You have the right minimum.

[00:00:31] [SPEAKER_05]: Welcome back folks.

[00:00:32] [SPEAKER_05]: 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 thing geared toward

[00:00:52] [SPEAKER_05]: employees.

[00:00:52] [SPEAKER_05]: 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.

[00:01:00] [SPEAKER_05]: Hi, before we get into all that, how you doing Walt?

[00:01:03] [SPEAKER_02]: Man, I'm good.

[00:01:04] [SPEAKER_02]: 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.

[00:01:10] [SPEAKER_02]: Like no complaints.

[00:01:11] [SPEAKER_02]: 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.

[00:01:17] [SPEAKER_05]: 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.

[00:01:22] [SPEAKER_05]: I heard that.

[00:01:23] [SPEAKER_05]: What was it like?

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

[00:01:25] [SPEAKER_05]: Other countries called out the US because we were reporting the total medal count.

[00:01:33] [SPEAKER_05]: To make it look like we were constantly over other countries.

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

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

[00:01:43] [SPEAKER_05]: Oh, we are over.

[00:01:44] [SPEAKER_05]: 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 interesting.

[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 on their site.

[00:02:00] [SPEAKER_02]: Yes.

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

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

[00:02:08] [SPEAKER_02]: Oh, 40.

[00:02:09] [SPEAKER_02]: They were 140.

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

[00:02:14] [SPEAKER_02]: So we did have the most overall medals and we were tied for the most

[00:02:18] [SPEAKER_02]: overall gold this year as well.

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

[00:02:23] Yeah.

[00:02:24] [SPEAKER_02]: And another before I continue on, man, how are you?

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

[00:02:27] [SPEAKER_05]: I'm good.

[00:02:28] [SPEAKER_05]: You also, but you're having your notes here.

[00:02:30] [SPEAKER_05]: Steph Curry Olympics.

[00:02:31] [SPEAKER_02]: Yeah, man.

[00:02:32] [SPEAKER_02]: Did you, I don't know if you saw the last two games because

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

[00:02:38] [SPEAKER_02]: So like Steph has been, he was off like the first couple of games,

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

[00:02:44] [SPEAKER_02]: I think there was one game he missed all his shots, but he didn't hit

[00:02:47] [SPEAKER_02]: like no shots.

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

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

[00:02:53] [SPEAKER_02]: He was killing it.

[00:02:54] [SPEAKER_02]: Like he was Chef Curry.

[00:02:55] [SPEAKER_02]: You know what I'm saying?

[00:02:56] [SPEAKER_02]: Yeah.

[00:02:57] [SPEAKER_02]: 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]: That's where he plays.

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

[00:03:04] [SPEAKER_02]: Okay.

[00:03:05] [SPEAKER_02]: That's where he plays with.

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

[00:03:09] [SPEAKER_02]: plays the Golden State Warriors.

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

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

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

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

[00:03:17] [SPEAKER_02]: LeBron is older.

[00:03:19] [SPEAKER_02]: Steph is older.

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

[00:03:23] [SPEAKER_02]: retiring, they're probably playing a few more years.

[00:03:26] [SPEAKER_02]: 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 always drift off on some unexpected,

[00:03:33] [SPEAKER_05]: but who is your favorite basketball player right now still playing?

[00:03:41] [SPEAKER_02]: Right now still playing?

[00:03:43] [SPEAKER_02]: I would have to say Steph, 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]: Okay.

[00:03:52] [SPEAKER_02]: Um, the shooting, I think he's probably the best shooter we'll,

[00:03:55] [SPEAKER_02]: we probably will see for a long time.

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

[00:03:59] [SPEAKER_02]: Okay.

[00:04:01] [SPEAKER_02]: Not the difficulty of the shots and stuff.

[00:04:03] [SPEAKER_02]: You know what I'm saying?

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

[00:04:06] [SPEAKER_02]: Yes.

[00:04:07] [SPEAKER_04]: Oh wow.

[00:04:08] [SPEAKER_02]: Yeah.

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

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

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

[00:04:17] [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_02]: Right.

[00:04:22] [SPEAKER_05]: As long as they, okay.

[00:04:23] [SPEAKER_05]: So that's your favorite team, but you're not.

[00:04:26] [SPEAKER_05]: Yeah, I get that too because you can have favorite players, especially

[00:04:29] [SPEAKER_05]: now, like for me with football, it's I'm a Saquon Barkley fan.

[00:04:36] [SPEAKER_05]: Can't, can't like, can't like his team.

[00:04:40] [SPEAKER_05]: Never that.

[00:04:41] [SPEAKER_05]: It's never, that's never going to happen.

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

[00:04:46] [SPEAKER_05]: I was watching some of the giants have hard knocks, the series, you know, how

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

[00:04:53] [SPEAKER_05]: going through that off season thing.

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

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

[00:05:01] [SPEAKER_05]: gaps in other places, many who.

[00:05:04] [SPEAKER_05]: All right.

[00:05:04] [SPEAKER_05]: That's dope man.

[00:05:05] [SPEAKER_05]: That's dope.

[00:05:06] [SPEAKER_05]: That's dope.

[00:05:07] [SPEAKER_05]: What else are you, what you watching anything recently that you like?

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

[00:05:12] [SPEAKER_02]: I finished fallout.

[00:05:14] [SPEAKER_02]: Fallout was good.

[00:05:15] [SPEAKER_02]: Oh, okay.

[00:05:15] [SPEAKER_02]: Cool.

[00:05:16] [SPEAKER_02]: Yeah.

[00:05:16] [SPEAKER_02]: So I finished that.

[00:05:17] [SPEAKER_02]: That's that I understand why I was nominated for 17 Emmys.

[00:05:21] [SPEAKER_02]: Oh, dang.

[00:05:22] [SPEAKER_02]: It was a really good show.

[00:05:23] [SPEAKER_02]: Dang.

[00:05:24] [SPEAKER_02]: Um, I watched presumed innocent with our Jake Jones.

[00:05:29] [SPEAKER_02]: Yeah.

[00:05:30] [SPEAKER_02]: And that was an amazing show.

[00:05:32] [SPEAKER_02]: I know it was a remake of the movie.

[00:05:34] [SPEAKER_02]: The Harrison Ford was in from back in the day.

[00:05:36] [SPEAKER_02]: Oh, I saw that.

[00:05:36] [SPEAKER_04]: It was, 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.

[00:05:42] [SPEAKER_02]: Oh, it was a remake.

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

[00:05:45] [SPEAKER_02]: So it was good.

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

[00:05:49] [SPEAKER_02]: Me too.

[00:05:51] [SPEAKER_02]: Me too.

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

[00:05:57] [SPEAKER_05]: It was way too many F bombs.

[00:06:00] [SPEAKER_05]: No effort like that just was.

[00:06:02] [SPEAKER_05]: I think the F bomb and the gore was excessive for no reason.

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

[00:06:11] [SPEAKER_02]: So that, that, that is true to who Deadpool is in the comics.

[00:06:14] [SPEAKER_02]: So they were like, let's, let's just say homage to him in the comments.

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

[00:06:19] [SPEAKER_05]: I guess, bro, but it's just every other word.

[00:06:22] [SPEAKER_05]: Like it was just too much for me, but the movie was good.

[00:06:25] [SPEAKER_05]: I think I did it.

[00:06:25] [SPEAKER_05]: I think it did a lot for the Marvel.

[00:06:27] [SPEAKER_05]: If you're a Marvel fan and all that, it did a lot for the

[00:06:31] [SPEAKER_05]: Marvel universe because of how they can start bringing all these

[00:06:36] [SPEAKER_05]: lost characters and series is in fantastic for the X-Men Marvel universe

[00:06:43] [SPEAKER_05]: includes X-Men and fantastic four, but they have not brought it into

[00:06:47] [SPEAKER_05]: 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]: So we'll see.

[00:06:55] [SPEAKER_05]: Yeah, no doubt.

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

[00:07:02] [SPEAKER_02]: me by all the recalls that's been going on with the food lately.

[00:07:07] [SPEAKER_02]: Yeah.

[00:07:08] [SPEAKER_02]: Like I'm just seeing like the Listeria Salmonella outbreaks,

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

[00:07:12] [SPEAKER_05]: But Boar's Head was the one.

[00:07:15] [SPEAKER_05]: No, you didn't.

[00:07:15] [SPEAKER_05]: My cousin sent it to me because we are Boar's Head fans and I threw away,

[00:07:19] [SPEAKER_05]: I had some Boar's Head in the fridge when she sent it and I was

[00:07:22] [SPEAKER_05]: like, let me make sure she's not sending me some nonsense that

[00:07:25] [SPEAKER_05]: 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]: I threw 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.

[00:07:36] [SPEAKER_05]: Like how do we know?

[00:07:38] [SPEAKER_02]: Some people might get sick.

[00:07:39] [SPEAKER_02]: Some people lay in bed.

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

[00:07:44] [SPEAKER_05]: where recalls come in, you have to expect it.

[00:07:46] [SPEAKER_05]: Oh, the food?

[00:07:48] [SPEAKER_02]: Hey, somebody told me that it's probably the conspiracy theorists in them,

[00:07:53] [SPEAKER_02]: but they were like, hey, every election year, something like this

[00:07:56] [SPEAKER_02]: always happens.

[00:07:58] [SPEAKER_05]: That's look, yeah.

[00:08:00] [SPEAKER_05]: It is probably, it's a mixture of things, but that's a good call out though,

[00:08:04] [SPEAKER_05]: 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]: What happened in the right hand, not my left hand.

[00:08:15] [SPEAKER_02]: But because those things always happen there.

[00:08:17] [SPEAKER_02]: There are always review, 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.

[00:08:24] [SPEAKER_05]: You go to FBA, they're running a list of recalls.

[00:08:28] [SPEAKER_05]: Yeah.

[00:08:28] [SPEAKER_05]: All the time.

[00:08:29] [SPEAKER_05]: I mean, all the time.

[00:08:30] [SPEAKER_05]: That's right.

[00:08:30] [SPEAKER_05]: Because our food chain is horrible.

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

[00:08:35] [SPEAKER_05]: Forget about it.

[00:08:35] [SPEAKER_05]: That's a whole, I'm sure there's other podcasts that get into the

[00:08:38] [SPEAKER_05]: hell with the state of our food.

[00:08:40] [SPEAKER_05]: You know what I mean?

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

[00:08:43] [SPEAKER_03]: Yeah.

[00:08:44] [SPEAKER_05]: Yeah.

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

[00:08:45] [SPEAKER_05]: Let's 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.

[00:08:57] [SPEAKER_02]: So I found an article by help net security.com and it's talking about the major

[00:09:03] [SPEAKER_02]: data bridges that have occurred in 2024.

[00:09:07] [SPEAKER_02]: So just going to go through some of the names that have been hacked and

[00:09:11] [SPEAKER_02]: are has in a drip reaches.

[00:09:13] [SPEAKER_02]: Trello was in happened in 2020 happened in January of this year.

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

[00:09:23] [SPEAKER_02]: account info that was compromised or listed online a site called or company

[00:09:29] [SPEAKER_02]: called any desk was hacked in 20th February of this year, France.

[00:09:34] [SPEAKER_02]: Treville was a French national unemployment agency and they suffered

[00:09:39] [SPEAKER_02]: a data breach and their people's social security numbers, a bunch of

[00:09:43] [SPEAKER_02]: PII data basically was compromised.

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

[00:09:53] [SPEAKER_02]: thousand individuals in December.

[00:09:56] [SPEAKER_02]: Meet Mitra, which I don't know what that is, but they were breached by

[00:10:00] [SPEAKER_02]: attackers via zero to zero day vulnerabilities.

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

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

[00:10:08] [SPEAKER_02]: And so they said these attackers also managed to move laterally and

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

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

[00:10:23] [SPEAKER_02]: Like they reached out back box in May and I didn't know about this

[00:10:27] [SPEAKER_02]: until I saw this article and I didn't know Dropbox had it

[00:10:30] [SPEAKER_02]: been breached like that.

[00:10:32] [SPEAKER_02]: Again, those were passwords, usernames, phone numbers, API keys,

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

[00:10:44] [SPEAKER_02]: Oh wow.

[00:10:45] [SPEAKER_02]: There was a BBC pension scheme in May where personal information of current

[00:10:51] [SPEAKER_02]: and former BBC employees were exposed in a data breach that was an in-house

[00:10:57] [SPEAKER_02]: pension scheme.

[00:10:59] [SPEAKER_02]: So somebody who did it from the inside and remember that stat we saw

[00:11:02] [SPEAKER_02]: that some of the crimes that occurred when it comes to fraud and those

[00:11:05] [SPEAKER_02]: different payroll crimes, it's an inside job.

[00:11:08] [SPEAKER_02]: A company called TeamViewer, a TeamViewer had an intrusion and the

[00:11:16] [SPEAKER_02]: threat actor leveraged a compromised employee account to copy the

[00:11:21] [SPEAKER_02]: employee directory data, which included like names, corporate contact

[00:11:25] [SPEAKER_02]: information and encrypted employee passwords from their internal

[00:11:30] [SPEAKER_02]: corporate IT environment.

[00:11:33] [SPEAKER_02]: Advanced Auto Parts.

[00:11:34] [SPEAKER_02]: 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 our listeners is we have to protect our name and

[00:11:51] [SPEAKER_05]: data, right?

[00:11:53] [SPEAKER_05]: Google will tell you, you use Google, it tells you, hey, you got too

[00:11:58] [SPEAKER_05]: many things, your stuff is on the dark web and you got too many

[00:12:01] [SPEAKER_05]: repeating passwords, your password's not strong enough.

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

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

[00:12:13] [SPEAKER_05]: 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 every

[00:12:23] [SPEAKER_05]: guaranteed, if you have a digital imprint, you're at risk of getting

[00:12:28] [SPEAKER_05]: hacked or the 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 reasons that some of those accounts were able

[00:12:40] [SPEAKER_02]: to be breached was because they did not have that multi-factor

[00:12:44] [SPEAKER_02]: authentication.

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

[00:12:48] [SPEAKER_05]: See, but that's a call out though, to the company.

[00:12:50] [SPEAKER_05]: I think that, I think we have to force, I think not we, companies

[00:12:54] [SPEAKER_05]: 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]: Cause 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 to get on your site

[00:13:09] [SPEAKER_05]: and spend money and do things.

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

[00:13:15] [SPEAKER_05]: They only want to put it around important things or finance.

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

[00:13:22] [SPEAKER_05]: think it has to be anything.

[00:13:24] [SPEAKER_05]: Everything and anything I think has to be multifactor.

[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 when, when you're,

[00:13:34] [SPEAKER_05]: when Anthony was on and I looked up, cause you could look up your own

[00:13:37] [SPEAKER_05]: 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 my phone provider.

[00:13:47] [SPEAKER_05]: First one, boom.

[00:13:49] [SPEAKER_05]: 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]: Yep.

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

[00:13:58] [SPEAKER_02]: And they tell me anytime my social is exposed, anytime 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.

[00:14:09] [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 $5 at a time, a dollar at a time,

[00:14:15] [SPEAKER_05]: $3 at a time, we ain't paying attention, but they can do that

[00:14:18] [SPEAKER_05]: times a million in a day.

[00:14:20] [SPEAKER_05]: It was like 6 billion thing.

[00:14:22] [SPEAKER_05]: Transactions a day that again, Anthony's websites had pointed out.

[00:14:27] [SPEAKER_05]: And it's in the show notes and that, in that episode, I forget what episode

[00:14:30] [SPEAKER_05]: is we got to remember these, but yeah, good stuff, man.

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

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

[00:14:40] [SPEAKER_05]: topic, California enacted heat protection for employees who work indoors.

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

[00:14:51] [SPEAKER_05]: measures that go into employers.

[00:14:54] [SPEAKER_05]: I'm sorry.

[00:14:55] [SPEAKER_05]: Employers in the state of Cali must adopt safety measures that go into

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

[00:15:04] [SPEAKER_03]: Okay.

[00:15:05] [SPEAKER_03]: Okay.

[00:15:05] [SPEAKER_05]: Yeah.

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

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

[00:15:14] [SPEAKER_05]: And you know what the answer was?

[00:15:15] [SPEAKER_05]: Oh, in the winter, it's cooler.

[00:15:17] [SPEAKER_05]: What?

[00:15:17] [SPEAKER_05]: Yeah.

[00:15:18] [SPEAKER_05]: But what about now?

[00:15:19] [SPEAKER_05]: You're going to have somebody pass out for me.

[00:15:21] [SPEAKER_05]: Stroke right now.

[00:15:23] [SPEAKER_05]: Your customers are going to pass out now.

[00:15:27] [SPEAKER_05]: Cali's is, oh wow.

[00:15:29] [SPEAKER_05]: My boy.

[00:15:29] [SPEAKER_05]: 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 a fast food workers are protesting

[00:15:35] [SPEAKER_05]: against the minimum wage.

[00:15:36] [SPEAKER_05]: They want it bumped another $4.

[00:15:39] [SPEAKER_05]: They just got a $4 bump from 16 to $20 an hour.

[00:15:43] [SPEAKER_05]: Now they want it bumped another $4.

[00:15:45] [SPEAKER_05]: Yeah.

[00:15:46] [SPEAKER_05]: Be careful folks.

[00:15:47] [SPEAKER_05]: Cause 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 can take your job.

[00:15:56] [SPEAKER_05]: And you go into McDonald's here wherever I go, there's more kiosks

[00:16:00] [SPEAKER_05]: than people actually taking your order.

[00:16:02] [SPEAKER_05]: Shoot.

[00:16:03] [SPEAKER_05]: I went to a spot.

[00:16:04] [SPEAKER_05]: Where was I?

[00:16:06] [SPEAKER_05]: Oh man.

[00:16:06] [SPEAKER_05]: I forget where I was, but it was like, oh, it was, uh, it

[00:16:09] [SPEAKER_05]: was here in Boca 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_03]: Yeah.

[00:16:17] [SPEAKER_05]: You had to order through the kiosk and then somebody brought the food out.

[00:16:23] [SPEAKER_02]: Yeah.

[00:16:23] [SPEAKER_02]: Look man.

[00:16:24] [SPEAKER_02]: 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, 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 some

[00:16:34] [SPEAKER_02]: restaurants are some businesses had to close their doors because they

[00:16:39] [SPEAKER_02]: couldn't afford to pay up to keep paying their employees like that.

[00:16:43] [SPEAKER_04]: Yeah.

[00:16:44] [SPEAKER_02]: Because they, they did it and they were like, Hey, we're going

[00:16:47] [SPEAKER_02]: to do right by our employees based on what the state says.

[00:16:49] [SPEAKER_02]: But because we can't maintain it, we got to close our doors.

[00:16:53] [SPEAKER_05]: Yeah.

[00:16:54] [SPEAKER_05]: And it's happening.

[00:16:55] [SPEAKER_05]: It's happening.

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

[00:17:00] [SPEAKER_05]: I don't know.

[00:17:01] [SPEAKER_05]: I don't know the answer to it, but

[00:17:03] [SPEAKER_02]: 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.

[00:17:08] [SPEAKER_05]: Everything's higher 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]: You have, we have to adopt and adapt and then progress.

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

[00:17:27] [SPEAKER_05]: relearning if you're flipping burgers right now, you might want to learn

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

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

[00:17:38] [SPEAKER_05]: I, I'd be open to it.

[00:17:39] [SPEAKER_05]: Cause 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, I'm overcooking or

[00:17:45] [SPEAKER_05]: undercooking.

[00:17:46] [SPEAKER_02]: Yup.

[00:17:46] [SPEAKER_05]: Right.

[00:17:47] [SPEAKER_05]: And my girls are the first ones to say, man, I got tough crowd.

[00:17:53] [SPEAKER_05]: Like this ain't it.

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

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

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

[00:18:01] [SPEAKER_03]: Yeah.

[00:18:02] [SPEAKER_05]: Let's pay the bills.

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[00:19:15] [SPEAKER_05]: I'll cut that out.

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[00:19:20] [SPEAKER_05]: Let's go.

[00:19:22] Let's go.

[00:19:23] [SPEAKER_05]: All right, man.

[00:19:23] [SPEAKER_05]: So you got some great stuff here.

[00:19:25] [SPEAKER_05]: Are you going to start it off and you finish it up?

[00:19:27] [SPEAKER_05]: You got six there.

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

[00:19:34] [SPEAKER_05]: Arrow pro more more popular.

[00:19:36] [SPEAKER_05]: I like to talk to the payroll pros.

[00:19:38] [SPEAKER_03]: The payroll for all.

[00:19:39] [SPEAKER_03]: Yeah, you're right.

[00:19:40] [SPEAKER_05]: Oh, where's my, why am I not in there?

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

[00:19:46] [SPEAKER_05]: This is California employees.

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

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

[00:19:57] [SPEAKER_05]: What you need to know as an employee arm you get you get, give you some

[00:20:03] [SPEAKER_05]: good information about what is your rights really as an employee.

[00:20:09] [SPEAKER_05]: So Cal and California now, and you might be like, Oh, why are you starting with

[00:20:13] [SPEAKER_05]: Cali because we did the numbers, right?

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

[00:20:19] [SPEAKER_05]: Cause we like, cause I'm from New York and what 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 literally has

[00:20:29] [SPEAKER_05]: the most employees in the country.

[00:20:32] [SPEAKER_05]: So we'll start there and there, which also may be why they're the

[00:20:37] [SPEAKER_05]: most employee centric, 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 estate 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 and talk about

[00:21:02] [SPEAKER_05]: different things, but we'll cycle back through, right?

[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, you're entitled to a state minimum

[00:21:15] [SPEAKER_05]: wage as of 2024 is 16 per hour.

[00:21:20] [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 because you will have

[00:21:33] [SPEAKER_05]: a different minimum wage per city.

[00:21:37] [SPEAKER_05]: Not, I made a recent error and I said county counties are bigger.

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

[00:21:44] [SPEAKER_05]: So it's so granular.

[00:21:45] [SPEAKER_05]: It's so granular that by city you get a different minimum wage.

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

[00:21:52] [SPEAKER_05]: you're getting the minimum wage according to the city you work in.

[00:21:56] [SPEAKER_05]: Not that you live in you working.

[00:22:00] [SPEAKER_05]: Okay.

[00:22:00] [SPEAKER_05]: Overtime pay you're entitled to overtime pay 1.5 of course, is the rate for

[00:22:07] [SPEAKER_05]: overtime, but in Cali there's an eight hour in most, let me clarify.

[00:22:14] [SPEAKER_05]: Let me put into perspective in most States and every other state I'd know

[00:22:18] [SPEAKER_05]: in most States over time is by the work week, by the 40 hour work week.

[00:22:25] [SPEAKER_05]: Right?

[00:22:25] [SPEAKER_05]: Not by pay period.

[00:22:27] [SPEAKER_05]: Right.

[00:22:27] [SPEAKER_05]: Now, if you get paid every two weeks, it's not over 80 hours in your

[00:22:30] [SPEAKER_05]: paycheck or 86 in the semi-monthly.

[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.

[00:22:39] [SPEAKER_05]: It's over eight hours in one day.

[00:22:42] [SPEAKER_05]: Okay.

[00:22:43] [SPEAKER_05]: And it goes into double time.

[00:22:45] [SPEAKER_05]: If you work 12 hours in a day and there's another one here that's,

[00:22:51] [SPEAKER_05]: 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 it is your overtime and is your minimum wage, right?

[00:23:05] [SPEAKER_02]: Yeah.

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

[00:23:07] [SPEAKER_02]: Because California is so employee centric.

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

[00:23:17] [SPEAKER_02]: for you as the employees or even that eight hours in the day or that 40

[00:23:20] [SPEAKER_02]: in the week, whichever one equals more for you.

[00:23:23] [SPEAKER_02]: That's what they should pay.

[00:23:24] [SPEAKER_05]: Good call out.

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

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

[00:23:31] [SPEAKER_05]: 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 the most favorable to you.

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

[00:23:42] [SPEAKER_05]: federal that have to go with your city.

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

[00:23:46] [SPEAKER_05]: So you ha it has to go more.

[00:23:47] [SPEAKER_05]: 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 unpaid

[00:24:08] [SPEAKER_05]: meal break 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 of pay

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

[00:24:22] [SPEAKER_05]: There's a penalty 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 meaning they can waive that break and avoid the

[00:24:39] [SPEAKER_05]: 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, right?

[00:24:50] [SPEAKER_05]: Work for a company where employees gladly waived it off because if they're

[00:24:55] [SPEAKER_05]: right in the middle of a sale, 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 who's going

[00:25:05] [SPEAKER_05]: to get the commissioning.

[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.

[00:25:11] [SPEAKER_05]: So keep that in mind as an employee.

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

[00:25:17] [SPEAKER_02]: You have to look and look, you want to make sure that not just you as the

[00:25:23] [SPEAKER_02]: employee signs it, the employer has to sign it too.

[00:25:26] [SPEAKER_02]: Yep.

[00:25:27] [SPEAKER_02]: You know what I'm saying?

[00:25:27] [SPEAKER_02]: So, 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.

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

[00:25:35] [SPEAKER_05]: Yeah.

[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 a major fraction thereof, you're entitled to a 10 minute

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

[00:25:44] [SPEAKER_05]: Okay.

[00:25:45] [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]: There are definitely a few.

[00:25:53] [SPEAKER_05]: 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, but California is probably

[00:26:02] [SPEAKER_05]: the first 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

[00:26:07] [SPEAKER_05]: worked.

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

[00:26:11] [SPEAKER_05]: member or preventative care.

[00:26:13] [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.

[00:26:22] [SPEAKER_05]: And every state is different on what they award per 30 hours.

[00:26:26] [SPEAKER_05]: Right?

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

[00:26:29] [SPEAKER_05]: If you have it usage, and I'm going to circle back to something

[00:26:33] [SPEAKER_05]: on the accrual real quick, but the usage for employers, it may

[00:26:36] [SPEAKER_05]: limit the amount of paid sick leave you can use to 24 hours.

[00:26:40] [SPEAKER_05]: So they say, Hey, you can accrue one hour for every 30, but they can,

[00:26:45] [SPEAKER_05]: 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, Ooh, 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_03]: I'm not sure.

[00:27:03] [SPEAKER_05]: Yeah.

[00:27:03] [SPEAKER_05]: Cause I feel like we've dealt with it.

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

[00:27:07] [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 work.

[00:27:20] [SPEAKER_05]: Right?

[00:27:22] [SPEAKER_05]: By law, 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.

[00:27:34] [SPEAKER_05]: Meaning if you got 20, if you got 15 hour, 15 hours work, they'll

[00:27:39] [SPEAKER_05]: give you the half hour, but that's not the law.

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

[00:27:46] [SPEAKER_05]: It can.

[00:27:47] [SPEAKER_05]: So if you feel like I'm not getting that it could be because you're not

[00:27:52] [SPEAKER_05]: working 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 we'll give you the fractions of the hour.

[00:28:07] [SPEAKER_05]: But it's that consider yourself a benefit 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 for every 30 hours you

[00:28:18] [SPEAKER_05]: work, 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.

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

[00:28:25] [SPEAKER_02]: To your point about San Francisco as of January this year, 2024, the law

[00:28:31] [SPEAKER_02]: in San Francisco does require that employers provide and allow employees

[00:28:35] [SPEAKER_02]: to use at least 40 hours or five days of sick per year.

[00:28:39] [SPEAKER_05]: But they cap it at 40 and not 24.

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

[00:28:45] [SPEAKER_05]: Yeah.

[00:28:45] [SPEAKER_05]: See, I knew they, I knew one, I figured, yeah, cause I think we had to update.

[00:28:51] [SPEAKER_05]: So pass it off to you, Walt for the last three.

[00:28:53] [SPEAKER_02]: Yep.

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

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

[00:28:59] [SPEAKER_02]: Final pay.

[00:29:01] [SPEAKER_02]: If you're as an employee in California, you must receive your final paycheck

[00:29:04] [SPEAKER_02]: immediately if you quit without notice, your final paycheck has to be paid within

[00:29:09] [SPEAKER_02]: three days or 72 hours.

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

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

[00:29:20] [SPEAKER_02]: your check is late up to 30 days.

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

[00:29:27] [SPEAKER_02]: One day or whatever.

[00:29:28] [SPEAKER_02]: So if you're scheduled for six hours a day and you work 30 hours a week, that

[00:29:32] [SPEAKER_02]: was one day for you, you'll get that one day up to 30 days.

[00:29:38] [SPEAKER_02]: So it's 30 times six is 180.

[00:29:42] [SPEAKER_02]: If your employer refuses to pay you.

[00:29:44] [SPEAKER_02]: So our penalties up there wage statements, your pay stub must include

[00:29:49] [SPEAKER_02]: details like your total hours worked, your gross wages, net wages, all

[00:29:54] [SPEAKER_02]: your deductions and applicable hourly rates.

[00:29:58] [SPEAKER_02]: If these details are missing or incorrect, you can file a claim

[00:30:03] [SPEAKER_02]: with the labor commissioner.

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

[00:30:08] [SPEAKER_02]: Number five, there's protection against wage theft.

[00:30:12] [SPEAKER_02]: So there's a wage theft prevention act that was passed.

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

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

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

[00:30:26] [SPEAKER_02]: rate of pay, the basis for pay, whether that's a salary hourly or commission,

[00:30:32] [SPEAKER_02]: et cetera, and any allowances like that you may receive, like any

[00:30:36] [SPEAKER_02]: mills lodging, those type of things.

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

[00:30:42] [SPEAKER_02]: employer is not paying you correctly.

[00:30:44] [SPEAKER_02]: Again, you can file a claim with the California labor commissioner's office

[00:30:47] [SPEAKER_02]: because you are protected against any retaliation for reporting

[00:30:52] [SPEAKER_02]: violations as well.

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

[00:30:58] [SPEAKER_02]: Tell all of them, run, tell that if you need to.

[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 test to determine if you're an

[00:31:22] [SPEAKER_02]: independent contractor or an employee.

[00:31:24] [SPEAKER_02]: If you have been misclassified as a contractor, you may be missing out on

[00:31:29] [SPEAKER_02]: those important benefits like overtime, unemployment,

[00:31:33] [SPEAKER_02]: insurance and workers comp.

[00:31:35] [SPEAKER_02]: Or if you've been classified as exempt, which means you're not

[00:31:42] [SPEAKER_02]: entitled to overtime pay, 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, you may be entitled to

[00:31:56] [SPEAKER_02]: overtime pay, even if your employer says you are exempt, your employer

[00:32:01] [SPEAKER_02]: has to follow those tests and make sure that you have met all those

[00:32:04] [SPEAKER_02]: 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.

[00:32:09] [SPEAKER_02]: Right.

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

[00:32:12] [SPEAKER_02]: And California does that, but other States do that as well.

[00:32:16] [SPEAKER_02]: And so it's stuff that 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, 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 and we have the

[00:32:31] [SPEAKER_02]: department of fair employment and housing site on here that

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

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

[00:32:41] [SPEAKER_02]: payroll professionals and how you can navigate California payroll.

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

[00:32:49] [SPEAKER_02]: employees, but it's going to be from the payroll professional aspect.

[00:32:53] [SPEAKER_02]: So there's six here.

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

[00:32:56] [SPEAKER_02]: Let's look at the first three and then I'll finish it up.

[00:32:59] [SPEAKER_05]: Yeah.

[00:32:59] [SPEAKER_05]: 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.

[00:33:11] [SPEAKER_05]: Right.

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

[00:33:17] [SPEAKER_05]: the payroll pros perspective, you want to audit a report with your employee.

[00:33:25] [SPEAKER_05]: The wage and the city they're in, and then bring up some build it into

[00:33:29] [SPEAKER_05]: your spreadsheet for her city, what the minimum wage is go out and go to

[00:33:35] [SPEAKER_05]: the Cali site if you don't have the payroll source from payroll org or if

[00:33:40] [SPEAKER_05]: you're not connected to sherm or there's another good site out there called

[00:33:44] [SPEAKER_05]: mineral that is compliance driven, right?

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

[00:33:53] [SPEAKER_05]: I always double check because you never know.

[00:33:55] [SPEAKER_05]: Cause look this stuff and I say, look, I say this a lot.

[00:34:00] [SPEAKER_05]: The, those sources payroll org, which is an amazing source.

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

[00:34:04] [SPEAKER_05]: Mineral sherm.

[00:34:06] [SPEAKER_05]: Well, and I'm there's probably a few more ADP websites, thing like that.

[00:34:11] [SPEAKER_05]: They may not, it may not, you just gotta double check it to

[00:34:14] [SPEAKER_05]: 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 so

[00:34:25] [SPEAKER_05]: that when you're doing minimum wage, you can't just check it by the state.

[00:34:29] [SPEAKER_05]: You have to check it by the city for California, right?

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

[00:34:34] [SPEAKER_05]: Oh wait.

[00:34:35] [SPEAKER_05]: Ooh, is it 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 that have different credits and

[00:34:46] [SPEAKER_05]: that it could also be state local driven, 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.

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

[00:35:05] [SPEAKER_02]: payroll professional employees, you want to make sure because the, and

[00:35:09] [SPEAKER_02]: say to California tipped employees must receive their full state or local

[00:35:14] [SPEAKER_02]: minimum wage plus their tips.

[00:35:17] [SPEAKER_02]: Ooh.

[00:35:17] [SPEAKER_02]: 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.

[00:35:31] [SPEAKER_05]: 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, but keep

[00:35:43] [SPEAKER_05]: in mind the seventh consecutive workday in a week and what those

[00:35:50] [SPEAKER_05]: overtime rules, the 12 hours in a day in a rule, right?

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

[00:35:57] [SPEAKER_05]: If you don't have employees that ever worked 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.

[00:36:07] [SPEAKER_05]: And then if they do, I got now, I gotta go look at my California

[00:36:10] [SPEAKER_05]: rate for 12 in a day, right?

[00:36:13] [SPEAKER_05]: So I think as payroll pros, you just gotta 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 Walt 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

[00:36:55] [SPEAKER_05]: 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.

[00:37:20] [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 rate or on

[00:37:42] [SPEAKER_02]: time may face penalties up to $4,000 per employee.

[00:37:48] [SPEAKER_02]: I just Google this.

[00:37:49] [SPEAKER_02]: Because 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 and like

[00:37:58] [SPEAKER_02]: a bunch of them are non-exempt or OT eligible employees, let's say out of

[00:38:03] [SPEAKER_02]: that 10,000, half of them are OT eligible and nobody's getting paid OT correctly.

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

[00:38:10] [SPEAKER_02]: And if I be able to pay the proper rate, you may face a fine

[00:38:13] [SPEAKER_02]: up to $4,000 per employee.

[00:38:16] [SPEAKER_02]: So 4,000 times 5,000.

[00:38:18] [SPEAKER_02]: That's 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]: 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, whoo, 20 million.

[00:38:37] [SPEAKER_05]: Yeah.

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

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

[00:38:41] [SPEAKER_05]: They're 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

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

[00:39:18] [SPEAKER_05]: yeah, it's a bit of CYA.

[00:39:19] [SPEAKER_05]: But for me, like our job, I dislike that in our job because like, yeah,

[00:39:26] [SPEAKER_05]: literally it is, it's not C it's cover the company's butt, not just your

[00:39:30] [SPEAKER_05]: butt, 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.

[00:39:42] [SPEAKER_05]: And no, and that's, that's maybe even how you frame it to whoever.

[00:39:47] [SPEAKER_05]: 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

[00:39:57] [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.

[00:40:08] [SPEAKER_05]: 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 can 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

[00:40:29] [SPEAKER_05]: is the meal and rest breaks.

[00:40:33] [SPEAKER_05]: Same thing.

[00:40:34] [SPEAKER_05]: 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

[00:40:54] [SPEAKER_05]: or it's automatically given to them.

[00:40:57] [SPEAKER_05]: Like there's automation in it, but you have to be careful because it

[00:41:03] [SPEAKER_05]: be more of a heartache than it's worth.

[00:41:08] [SPEAKER_05]: Right.

[00:41:08] [SPEAKER_05]: Because it's, Oh, that, 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

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

[00:41:22] [SPEAKER_05]: hours back to the employee.

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

[00:41:25] [SPEAKER_05]: I put the automation in once and.

[00:41:29] [SPEAKER_05]: Yo, I got such an upheaval of pushback on it.

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

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

[00:41:35] [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?

[00:41:46] [SPEAKER_05]: What?

[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.

[00:41:59] [SPEAKER_05]: Weaving it 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

[00:42:13] [SPEAKER_02]: though, if they sign it and they signed the waiver, but they still

[00:42:17] [SPEAKER_02]: get up a reset five fifth hour.

[00:42:21] [SPEAKER_02]: 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.

[00:42:41] [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]: Yeah.

[00:42:45] [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

[00:43:01] [SPEAKER_05]: and look back on it and do it in arrears, 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

[00:43:17] [SPEAKER_05]: window 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 if you want to look at it from a different view, you could, if you

[00:43:28] [SPEAKER_02]: do automate it, you could use that to shore up education and training for

[00:43:34] [SPEAKER_02]: 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 often 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 my own mind.

[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 Walt 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

[00:44:18] [SPEAKER_02]: those laws that revolve around the pay stubs and then making sure that they

[00:44:22] [SPEAKER_02]: include those specific information is like the gross wages, the total hours

[00:44:26] [SPEAKER_02]: work, those all deductions net wages and all those rates, right?

[00:44:30] [SPEAKER_02]: The timely payment of wages for final pays.

[00:44:33] [SPEAKER_02]: But then the things that can go to 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 their final check

[00:44:43] [SPEAKER_02]: for 30 days that can add up.

[00:44:46] [SPEAKER_02]: You know what I'm saying?

[00:44:47] [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 on

[00:45:01] [SPEAKER_05]: 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's may not always be immediate.

[00:45:18] [SPEAKER_05]: Your company may offer the technology and the function, but if you don't sign

[00:45:21] [SPEAKER_05]: up and set it up and implement it, then you may not be able to use it that day.

[00:45:26] [SPEAKER_05]: And we'll have, 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 or one of the

[00:45:38] [SPEAKER_02]: issues I've experienced in my own career is assuming that the system

[00:45:44] [SPEAKER_02]: was set up properly, assuming that all companies that were 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, no, sorry.

[00:45:57] [SPEAKER_02]: This was a setup for these newer acquisitions that you have.

[00:46:01] [SPEAKER_05]: And you're like, Oh yes.

[00:46:03] [SPEAKER_05]: If you're in the business of M and A and you're rolling new EINs

[00:46:08] [SPEAKER_05]: in new entities, in new pay groups in, and you have to build that checklist

[00:46:14] [SPEAKER_05]: to make 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 you

[00:46:22] [SPEAKER_05]: didn't put the location address in so that the live checks go to that place

[00:46:26] [SPEAKER_05]: 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 M and A period, however that looks for you,

[00:46:41] [SPEAKER_05]: you got to have good checklists for integration.

[00:46:43] [SPEAKER_02]: Yep.

[00:46:43] [SPEAKER_05]: Great.

[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]: every 30 hours worked and the employers can limit that to 24 hours

[00:47:02] [SPEAKER_02]: 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

[00:47:18] [SPEAKER_02]: regulations that may apply.

[00:47:20] [SPEAKER_02]: Right?

[00:47:20] [SPEAKER_02]: Yep.

[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 and it could be

[00:47:29] [SPEAKER_02]: based on where they work, not where they live.

[00:47:31] [SPEAKER_02]: So you want to look at that, right?

[00:47:32] [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 ABC test.

[00:47:45] [SPEAKER_02]: Which determined if an employee was a, was of a worker, was a

[00:47:50] [SPEAKER_02]: contractor and dependent contractor on 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 that

[00:48:01] [SPEAKER_02]: the stories can face is a penalty of

[00:48:05] [SPEAKER_02]: 5,000 to $25,000 per violation for voluntarily misclassifying an

[00:48:12] [SPEAKER_02]: employee as an independent contractor.

[00:48:15] [SPEAKER_02]: So companies could be doing this week and our true payroll crime stories.

[00:48:20] [SPEAKER_02]: How many people have no stuff knowingly to avoid taxes, to

[00:48:26] [SPEAKER_02]: evade, evade it was an evade or avoid.

[00:48:29] [SPEAKER_05]: No, they're evading.

[00:48:30] [SPEAKER_05]: They're evading.

[00:48:33] [SPEAKER_05]: They're evade.

[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 was saying?

[00:48:38] [SPEAKER_02]: So that's a lot of money for every instances, it's just 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 responsible

[00:48:46] [SPEAKER_02]: for it, ask the question as a payroll, say, Hey, could you run this audit

[00:48:49] [SPEAKER_02]: for me or are we doing this audit?

[00:48:51] [SPEAKER_02]: Are we making sure that our employees are classified correctly in the

[00:48:55] [SPEAKER_02]: state because there could be a bunch of fees that could add up.

[00:48:59] [SPEAKER_02]: Think about the costs.

[00:48:59] [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, liquidated

[00:49:06] [SPEAKER_02]: damages, interest in court costs that you may have to go through.

[00:49:09] [SPEAKER_02]: That there's litigation.

[00:49:10] [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 shop

[00:49:19] [SPEAKER_05]: is, it should be more on the HR people, not the payroll processing people.

[00:49:26] [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.

[00:49:39] [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, it's sometimes it's beyond our scope.

[00:49:51] [SPEAKER_05]: So just depending on how your shop is built, your organization, your HR

[00:49:57] [SPEAKER_05]: payroll departments are built.

[00:50:00] [SPEAKER_05]: It could, you could be just raising the, as a payroll pro, you're raising the

[00:50:03] [SPEAKER_05]: red, Hey, this don't look right.

[00:50:06] [SPEAKER_05]: But think about it also, you may not have any visibility into it because

[00:50:09] [SPEAKER_05]: if it's already happening before you get there, that means they're already

[00:50:13] [SPEAKER_05]: on a AP side, 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]: that 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 and somebody else, why

[00:50:35] [SPEAKER_02]: didn't you catch this team?

[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_05]: No, you know what I've been learning and been challenged with at this stage

[00:50:47] [SPEAKER_05]: of my career is how to articulate things properly and well.

[00:50:53] [SPEAKER_05]: We know the answer sometimes, but it's so ingrained in like our answers

[00:50:58] [SPEAKER_05]: almost because that's not articulating anything, you know what I mean?

[00:51:03] [SPEAKER_05]: For someone who doesn't know this content and stuff, just because

[00:51:08] [SPEAKER_05]: you 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

[00:51:20] [SPEAKER_05]: to articulate things properly so that you're explaining to your

[00:51:25] [SPEAKER_05]: colleagues 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

[00:51:44] [SPEAKER_05]: audit that can be done.

[00:51:45] [SPEAKER_05]: It's a potential, but that's articulating it, you know what I mean?

[00:51:50] [SPEAKER_05]: Because there's not a good answer.

[00:51:53] [SPEAKER_05]: And then real quick before we move on and I just wanted to circle back

[00:51:57] [SPEAKER_05]: to the sick leave part for the payroll pros.

[00:51:59] [SPEAKER_05]: Remember what I said, check your systems to see how it's

[00:52:02] [SPEAKER_05]: 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

[00:52:10] [SPEAKER_05]: company is looking to save money, that could be a place to save it

[00:52:14] [SPEAKER_05]: because if it's grant or it's a place where you can get a win to the

[00:52:19] [SPEAKER_05]: employees and you can articulate it to your employee workforce.

[00:52:24] [SPEAKER_05]: Hey, we actually go above and beyond the state mandate and we grant

[00:52:28] [SPEAKER_05]: 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, and you're in a payroll pro and HR, that's an

[00:52:37] [SPEAKER_05]: easy win to say, Hey, this is a benefit that we don't have to

[00:52:41] [SPEAKER_05]: give you, but we do give you.

[00:52:43] [SPEAKER_05]: We give you more than the calculation requires.

[00:52:47] [SPEAKER_05]: 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

[00:52:56] [SPEAKER_05]: folks 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.

[00:53:15] [SPEAKER_02]: It's not a good answer.

[00:53:16] [SPEAKER_05]: See what happened was it's not a good answer.

[00:53:18] [SPEAKER_05]: Right.

[00:53:19] [SPEAKER_05]: Exactly right.

[00:53:21] [SPEAKER_05]: Saying, I don't know in a very educated or articulate way, there's

[00:53:25] [SPEAKER_05]: a different way to say, 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

[00:53:34] [SPEAKER_05]: I 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.

[00:53:41] [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.

[00:53:57] [SPEAKER_05]: Now it's 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 really, right?

[00:54:05] [SPEAKER_05]: Because that's, that has been a recurring theme of HR is we want HR to track all

[00:54:11] [SPEAKER_05]: 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 their, if employee classification is

[00:54:20] [SPEAKER_05]: wrong or rather contractor, employee classification is wrong who owns it.

[00:54:27] [SPEAKER_05]: That's what companies are realizing more and more these days is wait a minute.

[00:54:31] [SPEAKER_05]: It's true.

[00:54:32] [SPEAKER_05]: HR should have visibility over this.

[00:54:33] [SPEAKER_05]: I'm my bad, 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]: out with a safe talk question.

[00:54:48] [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, I don't know.

[00:55:01] [SPEAKER_03]: I don't think at all.

[00:55:02] [SPEAKER_02]: I think, I think they do everything perfectly.

[00:55:06] [SPEAKER_02]: Probably not.

[00:55:07] [SPEAKER_02]: No, no.

[00:55:08] [SPEAKER_02]: But I think they do stuff focused for the employee in which I think a lot

[00:55:12] [SPEAKER_02]: more states could learn from 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 that has

[00:55:31] [SPEAKER_05]: to service California.

[00:55:33] [SPEAKER_05]: Yes, it's hard.

[00:55:34] [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.

[00:55:41] [SPEAKER_05]: But it's 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 burned 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.

[00:56:01] [SPEAKER_05]: Some of the most amazing teachers that I've seen leave the business.

[00:56:08] [SPEAKER_05]: Right?

[00:56:10] [SPEAKER_05]: Teachers that my kids loved and impacted they're leaving

[00:56:14] [SPEAKER_05]: because it'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.

[00:56:29] [SPEAKER_03]: It's like the folks who are taking care of our children.

[00:56:36] [SPEAKER_05]: Hold on, Charlie, get down.

[00:56:39] [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 on it.

[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.

[00:56:54] [SPEAKER_05]: It is tough, but it's it.

[00:56:58] [SPEAKER_05]: 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.

[00:57:10] [SPEAKER_02]: It's easy.

[00:57:11] [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.

[00:57:29] [SPEAKER_05]: And I'm sure politicians and business folks will come, will have plenty

[00:57:33] [SPEAKER_05]: 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]: But 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.

[00:57:47] [SPEAKER_05]: Right.

[00:57:48] [SPEAKER_05]: If you have so much to say about it, don't do business in California.

[00:57:51] [SPEAKER_05]: And that's not happening.

[00:57:52] [SPEAKER_05]: Silicon Valley.

[00:57:55] [SPEAKER_05]: It doesn't, Apple's based in Cali.

[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.

[00:58:03] [SPEAKER_05]: Most employees say they need the 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.

[00:58:16] [SPEAKER_05]: We don't have, we it's developing right in front of everybody's eyes and

[00:58:19] [SPEAKER_05]: ears, how we can talk about things.

[00:58:22] [SPEAKER_05]: The same subject, but talk about it for the employee and talk about it

[00:58:26] [SPEAKER_05]: for the payroll pro behind the scenes.

[00:58:28] [SPEAKER_04]: Yep.

[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.

[00:58:39] [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 for

[00:58:52] [SPEAKER_05]: being a part of this journey with us until the next time.

[00:58:56] [SPEAKER_05]: Keep learning, keep growing.

[00:58:58] [SPEAKER_05]: And most importantly, keep going.