State Labor Guidance
Free state labor-agency opinion letters, administrative policies, and interpretive notices, with plain-English summaries, current status, and the official source on every page.
No documents match your search
Try different keywords or clear a filter.
Owner-operator truck driver pay plans must separately reimburse vehicle operating costs under Labor Code §2804, and extra commute time beyond a customer delivery must be paid
A trucking company's counsel described a proposed pay plan for employee-drivers who own their own trucks, paying an hourly wage plus a share of the broker's revenue, and asked whether commute time aft…
DLSE forwards prior correspondence on the 9/80 alternative workweek schedule and flags possible federal DOL concern about workweek-splitting
An attorney asked DLSE about the 9/80 alternative workweek schedule. DLSE Chief Counsel replied by enclosing copies of correspondence the Division had already sent addressing the 9/80 schedule, statin…
Unpaid 30-minute meal periods are lawful if the employee gets a genuine duty-free opportunity to take them, but employers must pay for reported or known meal-period work
A company employing unsupervised field service technicians asked DLSE whether its practice of an unpaid 30-minute daily lunch period was lawful. DLSE explained that the IWC Orders require a duty-free …
An employer cannot recover overpaid vacation wages from an employee's final paycheck; that self-help deduction violates the state's wage-exemption public policy
Out-of-state counsel asked DLSE to confirm several statements in a proposed vacation policy, including that an employer could recover overpaid vacation wages from an employee's final paycheck. DLSE co…
A pre-vesting 'sign-on bonus' advance is a debt, not earned wages, so an employer cannot deduct its unearned portion from an employee's final paycheck even with written authorization
Counsel described a $5,000 sign-on bonus paid at the start of employment and earned incrementally over five months, with the employee's written authorization to deduct any unearned portion from the fi…
Personal-attendant exemption (IWC Order 15) does not cover workers who administer medication or take vital signs
This is a follow-up letter clarifying an earlier DLSE opinion about whether "Respite Workers" who assist home-care clients qualify as exempt "personal attendants" under IWC Wage Order 15's health-care…
Overtime for temp-agency respiratory therapists placed at multiple hospitals with different workweeks in one week
A staffing agency placing respiratory therapists at various hospitals asked DLSE how overtime applies when the same worker is placed at different hospitals with different adopted workweeks (e.g., 3 da…
Collective-bargaining overtime exemption ends when an employer unilaterally imposes terms after impasse, not merely when the old contract expires
Responding to a dispute involving National Broadcasting Co. and NABET, DLSE explained how the IWC Orders' exemption from overtime for employees covered by a qualifying collective bargaining agreement …
Alternative workweek: 'affected employees' can be a regional work unit, not necessarily the whole statewide job classification
An employer asked DLSE whether, for a proposed alternative workweek covering the job classification "collector," the "affected employees" who must be given the required notice and vote had to be all c…
Sporadic incentive/referral bonuses must be included in the regular rate of pay for overtime, vesting in the pay period the bonus objectively vests
An employer's counsel asked whether sporadic incentive bonus payments for work ancillary to employees' primary duties must be included in the "regular rate of pay" used to calculate overtime, under bo…
A reasonable per-mile car allowance (e.g. the IRS's 26 cents) is presumed to already cover the employee's auto-insurance cost
Following up on a phone conversation, DLSE clarified its position on whether an employer that reimburses an employee 26 cents per mile (the IRS-suggested rate at the time) for using the employee's own…
Employer-required uniforms: who pays, and who pays for cleaning, when an employee opts into a different color or fabric
A hospital employer asked DLSE about uniform-cost and cleaning obligations under IWC Order 5-89 §9(A). DLSE explained that if a nurse or other health-care professional in an occupation that generally …
'Belo' guaranteed-wage overtime contracts, though valid under federal law, do not satisfy California's IWC overtime requirements
An employer's counsel asked about "Belo" contracts -- guaranteed weekly-pay arrangements that pre-pay overtime for fluctuating hours, recognized under federal law since Walling v. Belo (1942) and codi…
A vacation plan that freezes ALL new accrual until an employee uses up every carried-over day is not an acceptable 'cap'
An employer proposed a vacation plan under which an employee who carried over unused vacation days into a new year would not accrue any new vacation until all the carried-over days were used. DLSE rej…
'Belo' guaranteed-wage overtime contracts, though valid under federal law, do not satisfy California's IWC overtime requirements
An employer's counsel asked about "Belo" contracts -- guaranteed weekly-pay arrangements that pre-pay overtime for fluctuating hours, recognized under federal law since Walling v. Belo (1942) and codi…
Commission forfeitures for 'uncollectible' or 'slow paying' customer accounts are illegal; bad debts are a cost of doing business
An employer's counsel described a sales commission plan that forfeited one-third of a commission if a customer account went unpaid past sixty-one days, the full commission past ninety-one days, and ad…
An undifferentiated 'PTO' bank that mixes vacation, sick leave, and personal days is treated entirely as vacation pay, which cannot be forfeited
A staffing company asked DLSE to review a "Paid Time Off" (PTO) policy that lumped vacation, holidays, sick leave, and personal days into one accrual bank, capped at 26 days, with only 10 days carried…
A restaurant's 'tropical' floral shirts and rugby shorts are not generally usable outside the job, so the employer must furnish them
A restaurant required its waiters and waitresses to wear commercially-available floral shirts and rugby-style shorts to create a "tropical" image, and offered to sell the items to employees at wholesa…
Piece-rate ('brokerage') cleaning-service workers fall under Wage Order 5-89 and get no overtime exemption; regular rate of pay must still be calculated
An employer's counsel described a business that cleans and maintains supermarket grounds and facilities, paying its workers a per-unit "brokerage" rate, and argued the workers fell under Wage Order 4-…
Part-time employees can adopt their own alternative workweek schedule as a recognized subdivision of the work group
Responding to a follow-up on an earlier interpretive bulletin and letter, DLSE clarified that part-time employees are not excluded from adopting an alternative workweek schedule under Wage Orders 4, 5…
Employer-directed travel time is hours worked in California with no federal-style 8-hour cap, unlike under the FLSA
An employer asked whether it complied with California law by paying only 8 hours of normal wages on days when employees were non-working passengers on planes or other transportation for 8 or more hour…
Cut-flower 'first bunching' is Wage Order 14 field work only until further grading effectively becomes the final grading covered by Order 13
A farm employer association sought further clarification of DLSE's earlier April 21, 1989 letter distinguishing Wage Order 13 (final grading and packing for market) from Wage Order 14 (agricultural ha…
Cut-flower grading-room work is Wage Order 13 (final grading/packing), not Order 14 field packing, once harvesters hand flowers off to dedicated graders
A farm employer association described two cut-flower operations where hand-crew harvesters place flowers in containers, and separate graders then sort by length, bud size, and quality, bundle them, an…
A foreseeable mechanical breakdown is not 'a cause not within the employer's control' excusing reporting-time pay
A citrus packing plant that suffers mechanical breakdowns shutting down its wholly mechanical operation asked whether Wage Order 5(C)(3)'s exception to reporting-time pay -- for interruptions "caused …
Volunteers for religious/charitable organizations aren't employees, but paid staff get no religious-organization minimum-wage exemption
A Christian Science church group asked DLSE how the Industrial Welfare Commission Orders apply to employees of church offices and attendants in Reading Rooms. DLSE explained there is no minimum-wage e…
Per-procedure pay to dialysis nurses is piece-rate work, not sales commissions, so it doesn't qualify for the commissioned-employee overtime exemption
Following up on 1984 and 1986 letters that had treated a client's dialysis nurses as commissioned employees exempt from overtime, an attorney asked DLSE to confirm that view still held. DLSE withdrew …
A vacation-accrual schedule that decreases in year two is not a reasonable acceleration policy under Suastez
Counsel for an employer asked DLSE to clarify a 1986 Interpretive Bulletin on vacation pay, describing a plan with no vacation accrual for the first 90 days, one week of vacation at the end of year on…
Reasonableness of a one-year vacation-accrual cap under Interpretive Bulletin 86-3
An attorney asked DLSE whether a one-year ceiling on vacation accrual would be a reasonable "use it or lose it" cap under Interpretive Bulletin 86-3. DLSE explained that caps on vacation accrual are p…
Monthly bonus payments and how to calculate the overtime due on bonus pay
A retailer's regional personnel attorney asked DLSE whether a bonus can be paid on a monthly basis under Labor Code § 204. DLSE confirmed a bonus may be paid monthly if the plan defines it as earned a…
Overtime on commissions paid alongside an hourly wage, and the semi-monthly payday rule for earned commissions
A payroll processor asked DLSE how to calculate overtime for an employee paid an hourly rate plus commissions. DLSE gave a worked example: divide commissions earned in the workweek by hours worked to …
Payroll deductions for voluntary spouse/dependent health-plan contributions don't violate Labor Code § 224
Counsel for an employer asked DLSE whether requiring employees who voluntarily elect optional spouse, dependent, or family health coverage to pay their share of the premium through a signed payroll-de…
Federal "basic rate" overtime shortcuts for commissioned employees don't apply under California law
An attorney asked DLSE to apply the federal Fair Labor Standards Act's "basic rate" regulations (29 C.F.R. § 548.1 et seq., referencing 29 U.S.C. § 207(i)) to compute overtime for commissioned employe…
Day-of-rest exemption for the "grape industry" during harvest extends to wineries fermenting grapes
A law firm asked DLSE to reconcile the Industrial Welfare Commission's wage orders with Labor Code § 551's day-of-rest requirement, and whether Order 8-80's exemption for the "grape industry" during t…
Time spent changing into required uniforms may be compensable; DLSE adopts the Lindow de minimis test
A hotel chain's counsel argued that time employees spend changing into and out of a required company uniform is de minimis and non-compensable under Lindow v. United States (9th Cir. 1984). DLSE disag…
Payday timing for unscheduled overtime and commissions under semi-monthly pay periods (Labor Code § 204)
A corporate personnel officer asked DLSE to clarify Labor Code § 204's timely-payment rules for wages earned in excess of an employee's normal work period, and for commissions, under a semi-monthly pa…
Auto-repair "commissions" paid per repair are piece-rate wages, not sales commissions, and can't be withheld past the final-pay deadline
A law firm asked whether its client could keep delaying payment of "commissions" to terminated employees until customer offsets and recall reimbursements were resolved. Citing the recent Keyes Motors …
How to calculate overtime owed on commissions earned on top of an hourly wage
A company officer asked DLSE how to calculate overtime for employees who earn commissions in addition to an hourly wage. DLSE explained the basic method: divide the commissions earned in a workweek by…
No cap on daily overtime hours if premium pay is paid; day-of-rest and constructive-discharge limits explained to a state legislator
A member of the California Assembly forwarded a constituent's complaint about excessive required overtime. DLSE responded that no law or regulation caps the amount of daily overtime an employer may re…
Overtime for substitute employees who fill in on a different shift length under an alternative-workweek agreement (Wage Order 5-80)
A law firm asked DLSE how overtime applies to substitute employees who work rotating 8-hour and 12-hour shifts under the alternative-workweek amendments to Wage Order 5-80. DLSE distinguished three si…
Meal periods spent confined to the employer's premises count as hours worked
An attorney asked DLSE to explain its position under Section 11 of the Industrial Welfare Commission orders on employees required to remain on the employer's premises during meal periods. DLSE reaffir…
Pre-existing, firm-wide sabbatical programs get a narrow exception from Suastez
An attorney followed up on DLSE's July 13, 1987 letter (1987.07.13-1) to ask about a sabbatical leave program offered to all employees of a firm, not just senior managers. DLSE reaffirmed that a firm-…
Federal Service Contract Act vacation rules are a floor, not a ceiling, under California law
The U.S. Department of Energy's Assistant Chief Counsel asked DLSE about vacation-benefit obligations for federal Service Contract Act contractors operating in California. DLSE's Chief Counsel respond…
No California exemption from daily overtime for federal Service Contract Act employees
A federal contractor's human resources manager asked whether California exempts employees working under the federal Service Contract Act and Contract Work Hours and Safety Standards Act from the Indus…
Criteria for a sabbatical leave program to fall outside Suastez and Section 227.3
An attorney asked DLSE whether Labor Code Section 227.3 and the Suastez decision apply to a client's sabbatical leave program. DLSE opined that a true sabbatical, defined as paid leave for travel, res…
Longevity bonuses in lieu of vacation at temporary service agencies, evaluated case-by-case for Suastez subterfuge
A temporary staffing company's president asked DLSE how the Suastez decision applies to temporary service agencies that pay longevity bonuses instead of offering vacation. DLSE explained that because …
Repayable quarterly 'yearly' bonus for nurses raises substantial-performance and deduction problems
An attorney asked DLSE about a bonus plan for nurses that pays a yearly bonus in quarterly installments, with repayment required if the employee does not complete a full year. DLSE said paying the bon…
Federal Service Contract Act vacation rules do not preempt California's Suastez proration requirement
An attorney for a security-guard contractor at the Oakland Army Base asked whether the federal Service Contract Act's vacation rules, which do not require proration, override California's Suastez v. P…
Bonus plans conditioned on active employment: substantial performance decided case-by-case
A law firm asked DLSE two questions about employee bonus plans: (1) whether a plan may require active employment on the bonus payment date, and (2) how the reason for termination affects eligibility. …
Suastez does not apply where no paid vacation is offered at all
An attorney asked DLSE whether the Suastez decision applied to a client whose sales representatives received no paid vacation but could take unpaid time off by mutual agreement, continuing to earn com…
'Unlimited' executive vacation with approval still vests pro rata under Suastez
An attorney asked DLSE to review a client's executive vacation and sick-leave policy, arguing that no vacation was accruing because managers were told they had unlimited vacation "with approval." DLSE…
Decelerating vacation accrual and probationary forfeitures violate Suastez
A trade association's executive asked DLSE to review specific vacation-accrual mechanics against the Suastez decision and Interpretive Bulletin 86-3. DLSE found that disproportionate, decelerating acc…
Sick leave convertible to 'personal compelling business' time is treated as vacation
A bank's personnel assistant asked DLSE about a policy letting employees use 3 days (24 hours) of earned sick leave for "personal compelling business" once 80 hours of sick leave had accrued. DLSE con…
Minimum wage as a draw against commissions, and reconciliation timing
An individual asked DLSE about paying minimum wage combined with commissions. DLSE explained that an employee covered by an Industrial Welfare Commission order must be paid at least minimum wage for e…
Prizes count toward overtime pay only if regular and tied to job performance
A law firm asked DLSE whether the value of prizes given to employees (nominal lottery tickets and raffle prizes) must be factored into the regular rate used to calculate overtime pay. DLSE responded t…
Personal Days Off convertible to vacation are subject to the Suastez no-forfeiture rule
A company's staff attorney asked DLSE to review its Personal Days Off (PDO) policy against the California Supreme Court's Suastez v. Plastic Dress-Up decision and DLSE's Interpretive Bulletin 86-3. Be…
Electronic payroll deposit requires voluntary employee authorization
An employer's personnel director asked whether the company could establish an automatic electronic payroll deposit system. DLSE confirmed that Labor Code Section 213 permits automatic deposit into an …
A vacation accrual rate that decelerates mid-employment is a Suastez red flag, with a narrow pre-existing-policy exception
An attorney asked DLSE to review a client's vacation policy where the accrual rate accelerated in the second six months of employment, then decelerated and leveled off, under the Suastez decision. DLS…
Cafeteria-style benefit plans under IRC Section 125 do not excuse compliance with Suastez
A bank's general counsel asked DLSE how Interpretive Bulletin 86-3 (applying the Suastez decision) interacts with IRS regulations under Internal Revenue Code Section 125 governing cafeteria-style bene…
Quarterly incentive bonus payments must still meet Labor Code Section 204's payday timing
An attorney asked DLSE to review a client's "Quality Incentive Bonus Plan" against Labor Code Sections 204 (payday timing) and 210 (penalties for late wages). DLSE confirmed that paying the bonus quar…
Traditional sabbatical leave generally falls outside Suastez, decided case-by-case
A company president asked DLSE how the Suastez decision and Interpretive Bulletin 86-3 apply to sabbatical leave. DLSE explained that sabbatical leave is generally not covered by Suastez, assuming it …
How this guidance is useful
- See how the agency reads the law: An opinion letter shows how a state labor agency actually applied wage-and-hour law to a real employer's or worker's situation.
- Check the status before relying: Every page shows whether the document is still active or has been superseded, rescinded, or withdrawn, and when that status was last verified.
- Guidance, not law: These documents explain the agency's position but bind no court, and the agency can change its view. The official document linked on every page is the authoritative source.
- Research across states: Compare how different states treat the same question, from overtime and travel time to tips and independent-contractor status.