California Employment Law Update

Category Archives: Payroll

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Employee’s Wrongful Termination Claim Was Properly Dismissed, But Other Claims Survive

Goonewardene v. ADP, LLC, 5 Cal. App. 5th 154 (2016) In her fifth amended complaint, Sharmalene Goonewardene alleged claims against her former employer (ADP) for wrongful termination, violation of the Labor Code, breach of contract, negligent misrepresentation and negligence. The trial court sustained ADP’s demurrer to the complaint without further leave to amend, and the … Continue Reading

Call Center Employees’ Unpaid Wage Claims Were Properly Dismissed

Corbin v. Time Warner Entm’t-Advance/Newhouse P’ship, 821 F.3d 1069 (9th Cir. 2016) Call center employees of Time Warner Entertainment-Advance/Newhouse Partnership (“TWEAN”) alleged that their employer’s compensation policy of rounding all employee time stamps to the nearest quarter hour deprived them of earned overtime. The lead plaintiff also claimed he was not compensated for one minute … Continue Reading

Employer Properly Deducted Hours From Exempt Employee’s Leave Bank

Rhea v. General Atomics, 227 Cal. App. 4th 1560 (2014) Lori Rhea is an exempt employee of General Atomics who receives a salary and accrues comprehensive annual leave (“Annual Leave”) that can be used by employees to take paid time off for any reason, including vacation, sickness, medical appointments, family obligations and leisure pursuits.  The … Continue Reading

California Employees May Soon Be Entitled to Paid Sick Leave

California Governor Jerry Brown has until September 30th to sign or veto A.B. 1522, a recently passed bill that would require businesses employing at least one person in California to provide employees with paid sick leave and to comply with new recordkeeping and informational requirements. If signed by the governor, the bill will become effective … Continue Reading

Unfair Competition Claim Against Franchisor Was Properly Dismissed

Aleksick v. 7-Eleven, Inc., 205 Cal. App. 4th 1176 (2012) Kimberly Aleksick, who worked as a clerk at a 7-Eleven store, sued 7-Eleven (the franchisor of the store where Aleksick was employed) for violation of the Unfair Competition Law (“UCL”). Aleksick alleged that 7-Eleven, which provides payroll services to its franchisees, violated the UCL by … Continue Reading

Supreme Court Clarifies Liability on Waiting Time Penalties

On November 18, the California Supreme Court in Pineda v. Bank of America, No. S170758 (Cal. Nov. 18, 2010) (pdf) clarified two issues regarding so-called “waiting time penalties” (i.e., penalties under California Labor Code Section 203 associated with the late payment of final wages upon termination of employment). First, the Court ruled that a three-year statute … Continue Reading

Tip of the Month: Best Practices for Compensation Audits

Recent changes in the legal and economic landscape have significantly heightened the risk that employers’ compensation systems will come under attack. Congress has passed the Lilly Ledbetter Fair Pay Act (“Ledbetter”), which effectively waives the statute of limitations for compensation discrimination claims under the majority of federal employment statutes. The law increases a plaintiff’s ability … Continue Reading

Voluntary, Written Authorization Required For Overpayment Deductions

In an opinion letter issued on November 25, 2008, the DLSE determined that an employer may make deductions from wages to reflect predictable and expected wage overpayments made in the immediately prior paycheck so long as the employer has obtained the employee’s voluntary, written authorization to do so. See http://www.dir.ca.gov/dlse/OpinionLetters-byDate.htm.… Continue Reading

Employee Was Not Entitled To Punitive Damages For Labor Code Violations

Brewer v. Premier Golf Properties, LP, 168 Cal. App. 4th 1243 (2008) Christine Brewer, a waitress who had been employed at the Cottonwood Golf Club, quit her job and filed a complaint seeking damages for various alleged violations of the California Labor Code. After a jury trial, Brewer was awarded less than $1,000 for unpaid … Continue Reading

Claims For Unpaid Meal Periods And Inaccurate Paystubs Were Properly Dismissed

Brinkley v. Public Storage, Inc., 167 Cal. App. 4th 1278 (2008) Fred Brinkley, a property manager for Public Storage, asserted class action and individual claims for violations of Labor Code § 226 (requiring accuracy of paystubs) and § 226.7 (meal and rest period requirements). The trial court granted summary adjudication in favor of the employer … Continue Reading

Operator Of Nursing Home Chain Was Properly Convicted For Failing To Pay Over Payroll Taxes

United States v. Easterday, 539 F.3d 1176 (9th Cir. 2008) Jack Easterday operated a chain of nursing homes. Between 1998 and 2005, the payroll taxes for his company and its subsidiaries were approximately $45 million of which only $26 million was paid to the IRS. In his criminal trial for failure to pay over payroll taxes, … Continue Reading

Employee Failed To State RICO Claim Based On Alleged Mail Fraud

Miller v. Yokohama Tire Corp., 358 F.3d 616 (9th Cir. 2004) Christopher Miller, who worked for Yokohama Tire Corporation for 11 years before his termination, alleged that he was denied overtime pay as a result of a “fraudulent scheme” on the part of his employer. Miller further alleged that Yokohama mailed him and other improperly … Continue Reading
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