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Who is responsible for providing National Minimum Wage pay information in the context of a TUPE transfer?

July 19, 2019

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Employers are required, under the National Minimum Wage Act 1998 (“Act”), to maintain pay records and, if requested to do so, to produce such information to their workers.  A failure by an employer to comply with its obligation to produce pay information within 14 days of a request can result in an Employment Tribunal making a declaration and award against the employer of up to 80 times the national minimum wage rate.

The Act expressly provides that in the event of a cessation of employment, the employee should seek such information from their former employer in respect of pay during that period of employment.

In a recent decision, the Employment Appeal Tribunal (“EAT”) clarified that because an employee’s employment automatically transfers and does not terminate in the context of a TUPE transfer, where an employee TUPE transfers to a new employer (the transferee), it is that employer which has the obligation to provide pay records, not the employee’s former employer (the transferor).

This decision highlights the need (particularly in the context of an outsourcing) for contractual obligations on a transferor to provide the transferee with all necessary information in relation to the transferring employees.

Minimum Wage Increases on the Horizon in California

Effective July 1, 2017, employers in San Francisco must raise the minimum wage from $13.00/hour to $14.00/hour.  By July 1, 2018, San Francisco’s minimum wage rate will be $15.00/hour.  Similarly, in the city of Los Angeles and the unincorporated areas of Los Angeles County, for employers with more than 25 employees, the minimum wage will be increased from $10.50/hour to $12.00/hour.  These minimum wage rates are currently higher than the State of California’s minimum wage rate of $10.50/hour for employers with more than 25 employees.  California will gradually increase minimum wage rates for employers with more than 25 employees, adding $1 to the base rate every January 1st culminating in $15.00/hour by January 1, 2022.

Bryan Cave LLP has a team of knowledgeable lawyers and other professionals prepared to help employers assess their minimum wage obligations. If you or your organization would like more information on wages or any other employment issue, please contact an attorney in the Labor and Employment practice group.

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