Description
California IWC Wage Order No. 1 – Manufacturing Industry Poster
Help satisfy California workplace posting requirements with the California IWC Wage Order No. 1 – Manufacturing 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. 1.
California employers must determine which Industrial Welfare Commission Wage Order applies to their 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. 1?
IWC Wage Order No. 1-2001 regulates wages, hours, and working conditions for employees in California's Manufacturing Industry.
The order applies to covered manufacturing employees whether they are paid on a time, piece-rate, commission, or other basis, subject to applicable exemptions and exclusions.
What Is the Manufacturing Industry?
California defines the Manufacturing Industry broadly. It includes industries, businesses, and establishments operated for the purpose of preparing, producing, making, altering, repairing, finishing, processing, inspecting, handling, assembling, wrapping, bottling, or packaging goods, articles, or commodities, in whole or in part.
What Types of Manufacturing Operations May Be Covered?
Depending on the employer's operations, Wage Order No. 1 may apply to employees involved in activities such as:
- Preparing goods or materials
- Producing products
- Making or fabricating goods
- Altering products
- Repairing manufactured goods
- Finishing products
- Processing materials or products
- Inspecting goods
- Handling products during manufacturing
- Assembling products or components
- Wrapping goods
- Bottling products
- Packaging goods
- Other covered manufacturing operations
What Types of Businesses May Use Wage Order 1?
Because California's definition of manufacturing is broad, Wage Order No. 1 can apply to many different types of businesses.
Depending on their operations, potentially covered employers may include:
- Manufacturing plants
- Assembly facilities
- Fabrication businesses
- Product processing facilities
- Packaging operations
- Bottling operations
- Product finishing businesses
- Repair operations that fall within the manufacturing definition
- Businesses producing or altering goods
- Other establishments engaged in covered manufacturing activities
Which Industries Are Excluded From Wage Order 1?
Not every business that processes, handles, packages, or produces goods falls under Wage Order No. 1.
California's Manufacturing Industry definition specifically excludes activities covered by certain other IWC Wage Orders, including:
- Wage Order No. 3 – Canning, Freezing, and Preserving Industry
- Wage Order No. 8 – Industries Handling Products After Harvest
- Wage Order No. 13 – Industries Preparing Agricultural Products for Market, on the Farm
- Wage Order No. 12 – Motion Picture Industry
Employers should evaluate their actual operations before assuming that manufacturing activities automatically fall under Wage Order No. 1.
Manufacturing vs. Food Processing
Food and agricultural processing operations require particular attention because several California Wage Orders can potentially apply.
For example, an operation involving canning, freezing, or preserving may fall under Wage Order No. 3, while certain after-harvest handling operations may fall under Wage Order No. 8 and qualifying on-farm preparation operations may fall under Wage Order No. 13.
The purpose, location, and nature of the processing activity can determine which Wage Order applies.
What Workplace Rules Does Wage Order 1 Cover?
California IWC Wage Order No. 1 addresses numerous wage-and-hour and working-condition requirements for covered manufacturing 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
- Changing rooms and resting facilities
- Seats
- Temperature
- Elevators
- Exempt employee classifications
- Other working conditions addressed by the order
California Minimum Wage and Wage Order 1
California's statewide minimum wage is updated separately from the underlying IWC industry Wage Orders. Manufacturing employers should comply with the current California Minimum Wage Order and determine whether another state law, local ordinance, or applicable requirement establishes a higher minimum wage.
Employers should maintain the current California Minimum Wage notice together with the applicable IWC industry or occupation Wage Order.
Overtime Under IWC Wage Order 1
Wage Order No. 1 contains California overtime requirements for covered nonexempt manufacturing 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. 1 contains provisions allowing qualifying manufacturing 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.
Alternative workweek agreements under Wage Order No. 1 must also comply with applicable requirements concerning scheduled workdays, employee elections, overtime, and days off.
Meal Period Requirements
Wage Order No. 1 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 manufacturing employees are generally entitled to authorized and permitted rest periods based on the total hours worked.
Employers should ensure that production schedules, assembly lines, manufacturing operations, and staffing practices allow employees to receive all applicable rest periods.
Reporting Time Pay
Wage Order No. 1 contains reporting time pay requirements that can apply when an employee reports for a scheduled workday but is furnished less than the required amount of work.
Manufacturing employers should review these requirements when production interruptions, equipment problems, supply shortages, scheduling changes, or other circumstances result in shortened or canceled shifts.
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. 1 contains requirements concerning additional compensation for split shifts in applicable circumstances.
Uniforms, Tools and Equipment
Wage Order No. 1 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.
The Wage Order also addresses employer responsibilities involving tools and equipment required or necessary for employees to perform manufacturing work.
Cash Shortages, Breakage and Equipment Loss
Wage Order No. 1 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.
Suitable Seating
Wage Order No. 1 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 the nature of the 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 1 Apply to Exempt Employees?
Wage Order No. 1 contains exemptions from certain sections for employees who satisfy California's requirements for executive, administrative, or professional exemptions.
Whether an employee qualifies as exempt depends on the employee's actual duties, compensation, and other applicable legal requirements. A manufacturing job title, supervisory title, or salaried status alone does not establish an exemption.
Computer Software Employees in Manufacturing
Wage Order No. 1 also contains provisions concerning certain highly skilled employees in the computer software field.
Qualifying computer employees must satisfy specific duties and compensation requirements. California adjusts the applicable compensation threshold periodically, so employers should review the current requirements before classifying a computer software employee as exempt.
Where Must IWC Wage Order 1 Be Posted?
California requires every employer subject to Wage Order No. 1 to keep a copy of the order posted in an area frequented by employees where it can be easily read during the workday.
Depending on the manufacturing operation, appropriate locations may include:
- Employee break rooms
- Employee bulletin boards
- Manufacturing floor employee areas
- Assembly areas
- Production facilities
- Warehouse employee areas
- Employee entrances
- Time-clock areas
- Human Resources areas
- Other conspicuous employee locations
When the location of work or other conditions make posting impractical, the employer must keep a copy of the Wage Order and make it available to every employee upon request.
Is California IWC Wage Order No. 1 Required?
Yes, when Wage Order No. 1 applies to the employer's employees. California requires covered employers to keep the applicable Industrial Welfare Commission Wage Order posted where employees can easily read it during the workday.
The Wage Order should be maintained with other applicable California and federal workplace notices.
How Do I Know Whether Wage Order 1 Applies?
Wage Order No. 1 generally applies when an employer operates a business or establishment for preparing, producing, making, altering, repairing, finishing, processing, inspecting, handling, assembling, wrapping, bottling, or packaging goods, articles, or commodities.
Employers should evaluate:
- The employer's primary business operations
- The manufacturing or processing activities performed
- The employee's actual duties
- Whether another industry-specific Wage Order applies
- Whether an applicable exemption or exclusion applies
IWC Wage Order No. 1 Poster Specifications
- 18"W x 24"H
- Portrait orientation
- Printed in full color
- Laminated with high-quality laminate
- Available in English and Spanish
- California Manufacturing Industry Wage Order
California Labor Law and Compliance Resources
Labor Law Compliance Center provides manufacturers and other 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.
