The California Supreme Court unanimously held in Goonewardene v. ADP, Inc., that a payroll service provider cannot be held liable for errors it makes in issuing paychecks to workers of companies it contracts with. The Court also held that payroll service providers do not owe a duty of care to employees to ensure the Labor Code and wage orders are followed.
The national average cost for a small business to defend and settle an employment related claim is $160,000 and required 318 days to get resolved. In California, small businesses had a 46% chance of having an employment charge filed against them, compared to the national average of just 10%. (Hiscox Insurance claim data)EVERY successful California business has a local experienced HR Advisor as a component of their executive management team.
California Labor Solutions (CLS) is a professional Human Resources Services firm based out of Orange County. Our HR Consulting Services include: HR Outsourcing, Regulatory Compliance Solutions, and Supplemental HR Support (for in-house teams).
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Please note that during this time of crisis, the updates, advisories and regulations that we receive from the promulgating agency often contain ambiguities and/or are often amended, modified or updated. The statements/opinions expressed herein is not legal advice. The opinions expressed herein are based on our reasonable interpretation of the issuing agency’s publication at the time the opinion is expressed and is therefore subject to change based on further developments. The effect of the opinions expressed may be different based on your particular circumstances, and it is recommended that you not rely upon these general opinions prior to obtaining a consultation with your legal and/or financial advisors.