In establishing their payroll policies and procedures, many California transportation industry employers often times face the question whether they should pay their drivers an hourly rate or flat rate compensation. While both types of payments are legal under California and Federal wage-and-hour laws, employers must be particularly careful when drivers are paid on a flat fee basis (or “piece rate”).

In its recent opinion Aleman (Michael) v. Airtouch Cellular, (Cal. 2012), (Cal. 2012), the California Court of Appeals examined the application of two important provisions from the Industrial Welfare Commission‘s Wage Order No. 4-2001 (Cal. Code Regs., tit. 8, § 11040): (1) reporting time compensation and (2) split shift premiums.

According to the San Francisco Minimum Wage Ordinance, starting January 1, 2012, all employees performing work in the county of San Francisco must be paid not less than $10.24 per hour.  San Francisco is the first city in the United Stated with a minimum wage rate above $10. This increase is a result of a proposition passed by the city’s residents in 2003.

The restaurant, bar and food service industry continues to be one of the most highly abused industries when it comes to complying with California Employment law.  Restaurant employees are often cheated out of their hard-earned wages, and employers are constantly subjected to costly wage-and-hour litigation which undermines the successes of the business.

In a previous post, we discussed the California minimum wage law and how the minimum wage violations are not always obvious and may require  professional evaluation to ascertain  the wrongdoings.  The following examples should help you recognize some of the typical violations.

Federal Minimum Wage = $7.25
California Minimum Wage = $8
San Francisco Minimum Wage = $9.92 $10.24