Description
California IWC Wage Order No. 2 – Personal Service Industry Poster
Help satisfy California workplace posting requirements with the California IWC Wage Order No. 2 – Personal Service Industry Poster. This 18 x 24-inch notice explains important wage, hour, overtime, meal period, rest period, and working-condition requirements for employees covered by California Industrial Welfare Commission Wage Order No. 2.
California employers must determine which Industrial Welfare Commission Wage Order applies to their business or employees and post the applicable order in an area frequented by employees where it can be easily read during the workday.
What Is California IWC Wage Order No. 2?
IWC Wage Order No. 2-2001 regulates wages, hours, and working conditions for employees in California's Personal Service Industry.
The order applies to covered employees whether they are paid on a time, piece-rate, commission, or other basis, subject to applicable exemptions and exclusions.
What Is the Personal Service Industry?
California defines the Personal Service Industry as industries, businesses, and establishments operated for the purpose of directly or indirectly providing services, operations, or processes used or useful in the care, cleansing, or beautification of the body, skin, nails, or hair or in the enhancement of personal appearance or health.
What Businesses May Be Covered by Wage Order 2?
Depending on the services provided, businesses potentially covered by California IWC Wage Order No. 2 can include:
- Beauty salons
- Hair salons
- Barber shops
- Schools of beauty culture providing beauty services to the public for a fee
- Nail salons
- Skin care and beauty establishments
- Bath and massage parlors
- Physical conditioning businesses
- Weight control salons
- Health clubs
- Mortuaries
- Other businesses providing covered personal appearance, body care, or health-related personal services
Are Booth and Chair Renters Covered by Wage Order 2?
Wage Order No. 2 contains an important definition of employee that includes a lessee who is charged rent or pays rent for a chair, booth, or space.
However, worker classification can involve additional California employment laws and factual considerations. Salon, barber, beauty, and personal service businesses should not assume that labeling a worker a booth renter or independent contractor automatically determines the worker's legal classification.
Businesses using chair, booth, or space rental arrangements should review current California worker-classification requirements in addition to Wage Order No. 2.
What Workplace Rules Does Wage Order 2 Cover?
California IWC Wage Order No. 2 addresses numerous wage-and-hour and working-condition requirements for covered employees, including:
- Hours and days of work
- Overtime compensation
- Alternative workweek schedules
- Minimum wages
- Reporting time pay
- Split shifts
- Payroll and employment records
- Cash shortages and breakage
- Uniforms and equipment
- Meals and lodging
- Meal periods
- Rest periods
- Seats
- Temperature
- Elevators
- Exempt employee classifications
- Other working conditions addressed by the order
California Minimum Wage and Wage Order 2
California's statewide minimum wage is updated separately from the underlying IWC industry Wage Orders. Employers should display the current California Minimum Wage notice together with the applicable Wage Order.
Employers must pay covered employees at least the current applicable California minimum wage and should also determine whether a city, county, or other local ordinance establishes a higher minimum wage for employees working at a particular location.
Overtime Under IWC Wage Order 2
Wage Order No. 2 contains California overtime requirements for covered nonexempt employees.
Generally, covered employees may be entitled to overtime compensation at one and one-half times their regular rate of pay for applicable hours worked over eight hours in a workday, over 40 hours in a workweek, and for the first eight hours worked on the seventh consecutive day of work in a workweek.
Applicable hours worked over 12 in a workday and over eight hours on the seventh consecutive day can require double-time compensation.
Alternative Workweek Schedules
Wage Order No. 2 permits qualifying employees to work an approved alternative workweek schedule when California's applicable election, scheduling, and other requirements are satisfied.
A properly adopted alternative workweek may permit regularly scheduled workdays of up to 10 hours within a 40-hour workweek without daily overtime for those regularly scheduled hours, subject to applicable requirements.
Meal Period Requirements
Wage Order No. 2 contains meal period requirements for covered employees. In general, covered employees may not be employed for a work period of more than five hours without receiving a meal period, subject to applicable exceptions and waiver provisions.
A second meal period may also be required when an employee works more than 10 hours in a workday, subject to applicable California requirements.
Rest Period Requirements
Covered nonexempt employees are generally entitled to authorized and permitted rest periods based on the total hours worked.
Employers should ensure that employees receive applicable rest periods and that workplace policies accurately reflect current California requirements.
Reporting Time Pay
Wage Order No. 2 contains reporting time pay requirements that can apply when an employee reports for a scheduled workday but is provided less than the required amount of work.
This can be particularly relevant to salons, spas, health clubs, and other appointment-based personal service businesses when employee schedules change because of cancellations or reduced customer demand.
Split Shift Requirements
A split shift is a work schedule interrupted by unpaid, non-working periods established by the employer other than bona fide meal or rest periods.
Wage Order No. 2 contains requirements concerning additional compensation for split shifts in applicable circumstances.
Commission-Paid Personal Service Employees
Employees covered by Wage Order No. 2 may be compensated on a commission basis, but commission compensation does not automatically remove an employee from California minimum wage, overtime, meal period, rest period, or other wage-and-hour requirements.
Personal service employers should ensure that commission plans and compensation practices comply with all applicable California wage-and-hour requirements.
Uniforms, Tools and Equipment
Wage Order No. 2 contains requirements concerning uniforms, tools, and equipment required for work.
When an employer requires an employee to wear a uniform as a condition of employment, applicable California requirements generally place responsibility for providing and maintaining the uniform on the employer.
Personal service businesses should also review applicable requirements concerning tools, equipment, supplies, and other items employees need to perform their jobs.
Cash Shortages and Breakage
Wage Order No. 2 generally restricts deductions or employee reimbursement requirements involving cash shortages, breakage, or equipment loss unless applicable requirements involving dishonest or willful conduct or gross negligence are satisfied.
Employers should review California requirements before deducting these types of losses from employee wages.
Suitable Seating
Wage Order No. 2 contains requirements concerning suitable seating for employees.
When the nature of an employee's work reasonably permits the use of a seat, suitable seats must be provided. When work requires standing, appropriate seating generally must be placed in reasonable proximity to the work area for employees to use when performing their duties does not require standing.
Does Wage Order 2 Apply to Exempt Employees?
Wage Order No. 2 contains exemptions from certain sections for employees who satisfy California's requirements for executive, administrative, or professional exemptions.
The order also contains exclusions applicable to outside salespersons and certain other individuals.
Whether an employee qualifies for an exemption depends on actual job duties, compensation, and other applicable requirements. A job title or salaried status alone does not establish an exemption.
Where Must IWC Wage Order 2 Be Posted?
California requires employers subject to Wage Order No. 2 to keep the applicable Wage Order posted in an area frequented by employees where it can be easily read during the workday.
Appropriate locations may include:
- Employee break rooms
- Employee bulletin boards
- Salon employee areas
- Barber shop employee areas
- Spa and massage employee areas
- Health club employee areas
- Employee entrances
- Time-clock areas
- Other conspicuous employee locations
Is California IWC Wage Order No. 2 Required?
Yes, when Wage Order No. 2 applies to the employer or employees. California requires employers to post the applicable Industrial Welfare Commission Wage Order in an area frequented by employees where it can be easily read during the workday.
The applicable Wage Order should be displayed with other required California and federal workplace notices. Employers should also maintain the current California Minimum Wage notice with the applicable IWC industry or occupation order.
How Do I Know Which California Wage Order Applies?
California maintains multiple industry and occupation Wage Orders. The correct Wage Order depends on the employer's industry, business operations, employee occupations, and other factors.
Beauty salons, barber shops, spas, massage businesses, health clubs, mortuaries, retail businesses, medical offices, and other establishments can fall under different Wage Orders depending on the actual nature of the business and work performed.
Employers should evaluate their operations before selecting the Wage Order to display.
IWC Wage Order No. 2 Poster Specifications
- 18"W x 24"H
- Portrait orientation
- Printed in full color
- Laminated with high-quality laminate
- California Personal Service Industry Wage Order
California Labor Law and Compliance Resources
Labor Law Compliance Center provides employers with California labor law posters, IWC Wage Orders, city and local workplace notices, specialty postings, and compliance resources throughout the United States. Browse our California IWC Wage Orders or visit our California Labor Law Posters page for additional California workplace posting requirements and compliance products.
