It's The Little Things In Life ... And Business That Matter -- Like Workers' Compensation Insurance and Itemized Wage Statements. Just ask Classic Upholstery
We often speak of the little things in life that really matter. The same is true in business. Often the little things in business really do matter. These little things add up and can have serious economic consequences.
Take, for example, Classic Upholstery & Trim in Visalia. It has been in business for several years, is a member of the Chamber of Commerce, and receives great reviews from customers.
Yet, just last week the California Labor Commissioner entered a judgment against the company for $64,000 in fines for not maintaining workers' compensation insurance and $26,000 in fines for not providing employees with itemized wage statements (paycheck stubs).
Few things are certain in life. But one thing is for sure, if you don't maintain workers' compensation insurance, the state will shut you down! And those stupid little requirements, found in Labor Code section 226, specifying what information must be on a paycheck stub, are very important. Not including the information will cost you dearly!
The case of Classic Upholstery is disturbing for two other reasons. First, the Labor Commissioner who filed the lawsuit to enforce the judgment. That means the arguments are over. The case has been tried. The company lost. Now the Labor Commissioner is taking steps to extract the money -- all $90,000 -- from the business. In addition, according to the complaint, Classic Upholstery is actually a dba for Todd Edward. So it looks like the judgment is not just against the business, but against the owner of the business. Ouch!
Employers in the state of California must pay attention to the details! In this case, those details should have included operating the business in the form of a corporation to limit personal liability, and compliance with those employment laws that are so costly if not followed.