California Employment Law Update : Labor and Employment Lawyers & Attorneys : Proskauer Rose Law Firm : Wage & Hour Laws, Disability, Workplace Safety

Last week, we reported that the California Labor Commissioner issued a template "Notice to Employee" as required by the Wage Theft Prevention Act of 2011 (the "Act"), which went into effect January 1. The Act requires employers to furnish specified wage information to certain non-exempt employees at the time of their hire.

As we also pointed out, the Commissioner's "Frequently Asked Questions," published December 30, 2011, stated that the Notice (or the information contained therein) must be given to all current employees, despite the fact that the statute calls only for employers to provide such data to employees "at the time of hiring." We placed a call to the DLSE shortly after the FAQs were issued, and the agency responded yesterday by updating its Web site. The FAQs, which can be found here, now reflect that the information required under new Labor Code § 2810.5 need only be provided at the time of hiring and within 7 days of a change in such information, if the change is not listed on the employee's pay stub for the following pay period.

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Please visit the update to this entry, available here.

On the eve of the implementation of California’s Wage Theft Prevention Act of 2011, the California Labor Commissioner has made available to employers a template Notice (Word / pdf) that complies with the requirements of new Labor Code § 2810.5. Beginning January 1, 2012, Section 2810.5 requires employers to furnish specified wage information captured by the Notice to most non-exempt employees. All required information must be provided to employees in the language that the employer normally uses to communicate employment-related information.

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California Labor Code § 515.5 exempts computer software professionals from the overtime pay requirements imposed by Labor Code § 510, provided they meet certain requirements. To qualify as exempt, these professionals must perform the functions enumerated in the statute and receive a minimum hourly rate of pay. The California Department of Labor Standards Enforcement (“DLSE”) has announced that effective January 1, 2012, the minimum rate for qualifying computer software professionals will be $38.89 per hour (up from $37.94 per hour in 2011), with commensurate increases in the monthly and annual minimum rates. Certain licensed physicians and surgeons are similarly exempt from state overtime requirements, so long as they are compensated at a minimum pay rate; effective January 1st, this minimum rate increases from $69.13 to $70.86 per hour.

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California Governor Jerry Brown has signed into law a number of bills addressing a wide array of issues that could significantly impact employers in the coming year. Read on for an overview of some of these new laws and their key provisions.

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The number of protected classes under California’s Fair Employment and Housing Act (“FEHA”), Cal. Gov’t Code § 12900 et seq., has risen by one. The FEHA, together with the Unruh Civil Rights Act, Cal. Civ. Code § 51, currently prohibit discrimination in employment, housing, public accommodation, and services provided by business establishments on the basis of various personal characteristics such as sex, race, color, national origin, religion, and disability. Additional protections have been added over time to include within the purview of these anti-discrimination statutes medical condition, marital status, and sexual orientation. Earlier this month, Governor Jerry Brown signed into law Senate Bill 559 (“SB 559”) (pdf), which adds genetic discrimination to the list of prohibited practices in California. “Genetic information” is defined by the bill as (1) the individual’s genetic tests; (2) the genetic tests of family members of the individual; and (3) the manifestation of a disease or disorder in family members of the individual. The bill’s proponents insist that because many genetic disorders are associated with particular racial, social, or ethnic groups, the new law will prevent genetic information from being used to stigmatize or unfairly discriminate against these groups. SB 559 augments the federal Genetic Information and Nondiscrimination Act of 2008, Pub. L. No. 110-233, whose range of protections was deemed by the California Legislature to be “incomplete for Californians.” SB 559, § 1(j). The practical effect of the law on employers remains to be seen, but for now we note that SB 559 touches not only the areas of housing and employment generally, but also licensing boards, life insurance coverage, and state-administered and funded programs.

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Campbell v. PricewaterhouseCoopers LLP, 2011 WL 2342740 (9th Cir. June 15, 2011) (pdf)

The U.S. Court of Appeals for the Ninth Circuit reversed a lower court’s grant of partial summary judgment in favor of the plaintiff-junior accountants, noting that the district court’s holding would produce “significantly troubling results” and create “highly problematic precedent affecting several non-accounting professions.” The plaintiffs, a class of approximately 2,000 current or former junior accountants resident in six California offices of PricewaterhouseCoopers LLP (“PwC”), claimed that PwC improperly classified them as “exempt” employees and failed to provide them overtime pay in accordance with California’s rigid overtime pay requirements. As “junior accountants,” the plaintiffs occupied the bottom two tiers of their department’s seven-tier hierarchy and performed, among other accounting functions, audits of financial records. While Certified Public Accountant (“CPA”) licenses were required for the five levels above them, the plaintiffs were unlicensed.

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As the federal government wades deeper into the realm of mobile "apps" (among the most useful, of course, the Smithsonian Institution’s “MEanderthal” app, which enables users to morph personal photos into prehistoric images of themselves), various U.S. agencies are promoting new apps that allow the public to access official information from “the palm of [one's] hand.”

Not to be left behind, the U.S. Department of Labor (DOL) recently rolled out a smartphone app to help employees independently track the hours they work. The “DOL-Timesheet,” as the app has been dubbed, is currently available in English and Spanish for use on the iPhone, iPod Touch, and iPad. The app is designed to assist employees in recording their hours worked and calculating the wages – including overtime – that they're owed. (Overtime pay is computed at a rate of one and one-half times the employee’s regular rate for all hours worked each week in excess of 40 – though California also has a daily overtime requirement for hours worked in excess of eight.) Users are currently able to view and email summaries of their logged hours and gross pay, and additional features have been promised, including the ability to track tips, commissions, bonuses, deductions, holiday and weekend pay, shift differentials, and paid time off.

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