The City of Milpitas recently released a new workplace notice for the Wage Theft Ordinance, which was passed by the City Council earlier this year. An updated City of Milpitas poster will soon be on its way to our customers.

Outline of the Wage Theft Ordinance

On March 20, 2018, the Milpitas City Council unanimously adopted the Wage Theft Ordinance to protect Milpitas workers in all industries against unscrupulous employers who fail to pay employees the correct earned wages.

The Council’s decision was based in part on a report provided by the Santa Clara County Wage Theft Coalition, estimating that workers in the county are deprived of millions of dollars every year. The report states that low-wage employees are the hardest hit, along with employees born outside the United States, undocumented immigrants, and individuals whose English skills are limited.

The ordinance defines wage theft as the following:

  • Denial of wages or benefits that are rightfully owed to an employee
  • Failure to pay overtime
  • Minimum wage violations
  • Employee misclassification
  • Illegal deductions in pay
  • Working off the clock
  • Not being paid at all

Under the ordinance, the City of Milpitas has the authority to revoke or suspend the business license of an employer who refuses to pay workers the wages they are due and is found in violation of local, state, or federal agency wage and hour laws. However, as noted on the Milpitas Wage Theft Ordinance page, the aim of the ordinance is not to revoke business licenses but to help employees get the pay they have earned. It is the goal of the City to work with employers to comply with the ordinance prior to revoking a business license.

Employer Requirements Under the Wage Theft Ordinance

The new Wage Theft Ordinance notice lists several wage and hour law requirements for employers, some of which are outlined below.

  • Employers must pay employees for all hours worked unless an employee is exempt. An exempt employee is defined as someone who:
    • Receives a salary that is at least twice the minimum wage AND
    • Supervises 2 or more employees AND
    • Performs supervisory duties—OR professional or high-level administrative duties—more than 50% of the time
  • Employers must pay at least the minimum wage, tips may not be deducted from an employee’s wages, and supervisors cannot share tips.
  • Employers must pay overtime to employees who are not exempt.
  • Wages must be paid immediately if an employee is fired and in 72 hours if an employee quits.

No Other Changes for Milpitas

At this time, there are no updates to the other required notices on our Milpitas poster—Minimum Wage and Know Your Rights.

We Can Keep You in Compliance

If you order our City/County Poster 1-Year Plan, you will automatically receive the updated City of Milpitas poster as soon as it is available. And because we provide free poster updates for mandatory changes, no matter how many occur during the 12-month period, you can always count on Poster Compliance Center to keep you in compliance!