Wage Theft Ordinance

Overview

On March 20, 2018, Milpitas City Council adopted Ordinance #295 (PDF) establishing a City-wide Wage Theft Policy.

Wage theft is the denial of wages or employee benefits that are rightfully owed to an employee. Wage theft can be failure to pay overtime, minimum wage violations, employee misclassification, illegal deductions in pay, working off the clock, or not being paid at all. Workers, communities, responsible businesses, and taxpayers are all negatively affected by wage theft.

The intention of the City of Milpitas is not to punish businesses but to bring everyone into compliance and keep business competition fair. All businesses in the City of Milpitas which are required to have a business license are subject to the new wage theft ordinance.

The new ordinance gives the City the ability to revoke or suspend the business license of any employer who refuses to pay their final court order or administrative action when found by a Local, State or Federal agency in violation of wage or hour laws. Without a business license an employer would effectively not be able to operate in the City of Milpitas.

If you have any questions about your responsibility as an employer you can enroll in a free labor law and tax seminar offered by the Division of Labor Standards Enforcement and Employment Development Department.

Employers must post the Wage and Hour Law Guide (PDF) for employees to see.