California Employment Law Update

Category Archives: Bonus Compensation

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January 2023 California Employment Law Notes

We invite you to review our newly-posted January 2023 California Employment Law Notes, a comprehensive review of the latest and most significant developments in California employment law. The highlights include: Age/National Origin Case Was Properly Dismissed Despite “Direct Evidence” Of Discriminatory Animus Family Court May Order Employer To Provide Determination Of Arrearages Owed In Spousal … Continue Reading

Employer Need Not Count Overtime Twice In Bonus Calculation

Lemm v. Ecolab Inc., 2023 WL 21795 (Cal. Ct. App. 2023) Stephen Lemm, a route sales manager, brought a PAGA action against his employer, Ecolab, Inc., alleging that Ecolab improperly calculated nondiscretionary bonuses. Pursuant to Ecolab’s incentive plan, an employee could receive a higher monthly bonus based on performance as a percent of gross wages. … Continue Reading

Ninth Circuit Clarifies Overtime Calculation Rules for Shift Premiums and Holiday Pay Under California Law

To properly calculate the overtime rate for a non-exempt employee, employers must first calculate the “regular rate of pay.”  Under federal law, and the laws of most states, the regular rate is determined by dividing the employee’s total weekly remuneration (except for a handful of categories that are specifically excluded, such as gifts and payments … Continue Reading

November 2021 California Employment Law Notes

We invite you to review our newly-posted November 2021 California Employment Law Notes, a comprehensive review of the latest and most significant developments in California employment law. The highlights include: Ninth Circuit Resurrects California’s Anti-Arbitration Statute In-House Counsel’s Claim For Breach Of Oral Promise Of Contingency Fee Was Barred By Statute Employee Can Proceed With … Continue Reading

In-House Counsel’s Claim For Breach Of Oral Promise Of Contingency Fee Was Barred By Statute

Missakian v. Amusement Indus., Inc., 69 Cal. App. 5th 630 (2021) Former in-house counsel Craig Missakian sued his former employer, Amusement Industry, Inc., based on an alleged oral promise to pay him a bonus and a share of recovery from real estate litigation that was pending in New York, which ultimately settled for $26 million.  At … Continue Reading

September 2021 California Employment Law Notes

We invite you to review our newly-posted September 2021 California Employment Law Notes, a comprehensive review of the latest and most significant developments in California employment law. The highlights include: Ninth Circuit Rejects “Paramour Preference” Liability Arising From Supervisor’s Affair With Another Employee $3.5 Million Emotional Distress Award Was “Shockingly Disproportionate” To Evidence Of Harm … Continue Reading

Section 998 Settlement Offer Violated Labor Code

Wasito v. Kazali, 2021 WL 3878379 (Cal. Ct. App. 2021) Subiono Wasito and Enny Soenjoto (plaintiffs) were employed as resident managers of a motel owned by the Kazali family. When the Kazalis closed the motel for renovations, plaintiffs were told their employment was being terminated. After plaintiffs demanded their unpaid wages, the Kazalis paid the … Continue Reading

DOL’s Interpretation Of Tip Credit Regulation Does Not Merit Judicial Deference

Marsh v. J. Alexander’s LLC, 869 F.3d 1108 (9th Cir. 2017) Alec Marsh, who worked as a server for J. Alexander’s, alleged violation of the Fair Labor Standards Act (“FLSA”) based upon the employer’s failure to pay him the federal minimum wage of $7.25 per hour. Marsh further alleged that he received more than $30 … Continue Reading

Employee Is Not Entitled To Attorney’s Fees For Breach Of Contract Claim

Shames v. Utility Consumers’ Action Network, 2017 WL 2807920 (Cal. Ct. App. 2017) Michael Shames filed this lawsuit against the Utility Consumers’ Action Network (“UCAN”), alleging various causes of action stemming from the termination of his employment. Although his amended complaint alleged UCAN’s breach of contract for its failure to pay him multiple bonus payments, … Continue Reading

Piece-Work-Based Pay Plan Violates FLSA

Brunozzi v. Cable Commc’ns, Inc., 851 F.3d 990 (9th Cir. 2017) Matteo Brunozzi and Casey McCormick worked as technicians for CCI installing cable television and internet services. They alleged that CCI’s compensation plan violates the overtime provisions of the Fair Labor Standards Act (“FLSA”) because the “production bonus” paid by CCI is designed to decrease … Continue Reading

Large Grocer May Have Made Unlawful Deductions From Employees’ Bonus Plan

Ralphs Grocery Co. v. Superior Court, 112 Cal. App. 4th 1090 (2003) David Swanson, a former store manager at a Ralphs grocery store, filed a class action against Ralphs for alleged violations of the California Labor Code and the Unfair Competition Law (Business and Professions Code Section 17200). Swanson alleged that Ralphs had violated the law by making … Continue Reading
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