California Employment Law Update

Category Archives: California Labor & Employment Law

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No Sexual Harassment Claim Between Friends

By Philippe A. Lebel and Ryan McGill on Posted in California Labor & Employment Law, Harassment, Sexual Harassment
Under California’s Fair Employment and Housing Act (“FEHA”), employers generally are strictly liable for a supervisor’s harassment, even where the employer is unaware of the supervisor’s alleged bad actions.  While this left many employers without much recourse in the event supervisors misbehaved, a recently published Court of Appeal decision offers some hope.  In Atalla v. … Continue Reading

Good News for Employers: Good Faith Belief of Compliance Precludes Both Final Wage and Wage Statement Penalties

By Kate Gold and Sehreen Ladak on Posted in California Labor & Employment Law, California Labor Code, California Labor Code Section 203, Class Actions, Labor Code § 226, Meal Periods and Rest Breaks, Wage and Hour, Wage Statements
Last summer, we reported here the California Supreme Court ruling that premium payments owed under Labor Code section 226.7 for meal and rest break violations constitute “wages.” The Naranjo et al. v. Spectrum Sec. Servs., Inc., 13 Cal. 5th 93, 102 (2022) decision had significant ramifications because it triggered related obligations for employers to report … Continue Reading

California’s War On The Fast-Food Industry Continues

By Tony Oncidi and Ariel Brotman on Posted in California Labor & Employment Law, California Labor Code, Joint Employer, New and Proposed Laws and Legislation
In the California Legislature’s latest attack on the fast-food industry, Assemblymember Chris Holden (D-Pasadena) introduced the Fast Food Franchisor Responsibility Act (“AB 1228”). AB 1228 was introduced shortly after a Sacramento County Superior Court judge issued a preliminary injunction to stop the controversial Fast Food Accountability and Standards Recovery Act or “FAST Recovery Act” (AB … Continue Reading

Court Obliterates California’s Anti-Arbitration Law

By Philippe A. Lebel and Morgan Peterson on Posted in Arbitration Agreements, California Labor & Employment Law, FAA, New and Proposed Laws and Legislation
Yesterday, a three-judge Ninth Circuit panel revisited its own 2021 order and finally struck down California’s anti-mandatory employment arbitration law, Assembly Bill 51 (“AB 51”).  In an opinion drafted by the former dissenting judge, Judge Sandra Ikuta, the new majority declared AB 51 was preempted by the Federal Arbitration Act (“FAA”). The statute in question, … Continue Reading

Los Angeles Court Orders Employer To Pay Whistleblower $2.3 Million In Attorney’s Fees On Top Of $24 Million Judgment

By Tony Oncidi and David Gobel on Posted in Attorney's Fees, California Labor & Employment Law, Gender discrimination, Verdict
A California judge has ordered Farmers Insurance to pay almost $2.3 million in attorney’s fees to the lawyers of a successful whistleblower/former in-house attorney who claimed his role as a potential witness in a sex bias class action got him fired. The underlying judgment in favor of the whistleblower was $24.36 million – after the … Continue Reading

Court Puts New Controversial Fast-Food Worker Law on Hold

By Philippe A. Lebel and Michelle Lappen on Posted in California Labor & Employment Law, California Labor Code, Collective Bargaining, Minimum Wage, New and Proposed Laws and Legislation, Wage and Hour
On January 13, 2023, a Sacramento County Superior Court judge issued a preliminary injunction to stop the controversial Fast Food Accountability and Standards Recovery Act or “FAST Recovery Act” (AB 257) from taking effect, pending a vote by California voters.  Previously, on December 30, 2022, the court had issued a temporary restraining order against the … Continue Reading

IRS Increases Mileage Rate for 2023

By Kate Gold and Ariel Brotman on Posted in California Labor & Employment Law, California Labor Code, Expense Reimbursement, Wage and Hour
On January 1, 2023, the IRS mileage rate increased to 65.5 cents per mile for driving done for business purposes.  This is a three (3) cent increase from the rate set for the second half of 2022.  According to the IRS, this rate applies “to electric and hybrid-electric automobiles, as well as gasoline and diesel-powered … Continue Reading

Layoffs Accelerate As Employers Struggle with Record Inflation

By Tony Oncidi and Ryan McGill on Posted in ADA, ADEA, California Labor & Employment Law, News, WARN Act
As the economy continues to struggle amidst the ravages of 40-year-high inflation, employers are finding it increasingly difficult to maintain their current staffing levels. While the tech industry has been the epicenter for layoffs thus far, a growing number of industries are being affected as well, including banking, financial, and legal services, and media outlets. … Continue Reading

California Labor Commissioner Releases Pay Transparency FAQs

By Tony Oncidi and Ryan McGill on Posted in California Labor & Employment Law, Equal Pay Act, Hiring, New and Proposed Laws and Legislation
As we previously reported here, California employers with 15 or more employees are required to post salary ranges on job postings as of January 1, 2023 (i.e. next week!). The Labor Commissioner has provided additional guidance as to how these requirements will be interpreted. The law requires employers to post pay scales on all job … Continue Reading

California’s Civil Rights Department Adds More Detail to Regulations Regarding Consideration of Applicants’ Criminal History

By Philippe A. Lebel and Michelle Lappen on Posted in Background Investigations, California Labor & Employment Law, FEHA, Hiring
In the weeks and months since it changed its name from the Department of Fair Employment and Housing to the California Civil Rights Department (“CRD”), the agency has been busy.  Most recently, the CRD released proposed modifications to the regulations under the Fair Employment and Housing Act (“FEHA”) related to the use and consideration of … Continue Reading

California Mandatory Postings and Pamphlets – What’s New for 2023

By Kate Gold and Ariel Brotman on Posted in California Labor & Employment Law, California Labor Code, CFRA, Discrimination, Employee Handbooks, Employment Policies, Harassment, Hiring, Leaves of Absence, Minimum Wage, New and Proposed Laws and Legislation, Pregnancy Leave, Wage and Hour
California employers are required to post several notices and distribute various pamphlets informing employees of their employment rights.  Effective January 1, 2023, eight (8) out of eighteen (18) of these required notices will be updated.  The eight (8) notices that will be updated are the following: 1. California Minimum Wage; 2. Family Care and Medical … Continue Reading

Stick to the Schedule: Los Angeles Imposes Significant New Requirements on Retail Employers

By Philippe A. Lebel and Morgan Peterson on Posted in California Labor & Employment Law, New and Proposed Laws and Legislation, Wage and Hour
On November 22, 2022, the Los Angeles City Council unanimously passed the Fair Work Week Ordinance (“FWWO”).  Set to take effect in April 2023, the new law imposes significant requirements on retail employers in the City of Los Angeles with respect to both scheduling and hiring.  It follows in the footsteps of similar predictive scheduling … Continue Reading

Arbitrator Should Decide Whether NY or CA Law Applies

By Tony Oncidi, Kate Gold, Colleen Hart, Katrine Magas and Ryan McGill on Posted in Arbitration Agreements, California Labor & Employment Law, California Labor Code, Labor Code § 925
A California court has ruled that an arbitrator (not a judge) should decide on the applicability of California Labor Code Section 925 to a dispute between a law firm partner and his former law firm. Zhang v. Superior Court, 2022 WL 16832570 (Cal. Ct. App. 2022).  This ruling potentially undermines the protections of Labor Code … Continue Reading

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

By Allan Bloom, Kate Gold, Philippe A. Lebel and David Gobel on Posted in Bonus Compensation, California Labor & Employment Law, California Labor Code, Overtime
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

The Ninth Circuit Adopts Broad View of Whistleblower Retaliation Claim under the California Whistleblower Protection Act

By Tony Oncidi and Michelle Lappen on Posted in California Labor & Employment Law, California Labor Code, Employee Discipline, Retaliation, Whistleblowers, Wrongful Termination
In the continuously evolving whistleblower retaliation standard we previously reported on earlier this year here and here, the Ninth Circuit has now weighed in on California Labor Code section 1102.5 in Killgore v. Specpro Pro. Serv., LLC, No. 21-15897. In holding that a consultant on an environmental project for the U.S. Army Reserve Command raised … Continue Reading

California Court of Appeal Dismantles Rounding Where Accurate Timekeeping Records Exist

By Philippe A. Lebel and Sehreen Ladak on Posted in California Labor & Employment Law, California Labor Code, Class Actions, Wage and Hour
A decade ago, a California Court of Appeal held that employers lawfully could round employees’ time punches if the rounding policy was neutral on its face and as applied. See See’s Candy Shops, Inc. v. Super. Ct., 210 Cal. App. 4th 889 (2012). In arriving at this conclusion, the See’s Court relied on regulations under … Continue Reading

Five New Employment Laws that Every California Employer Should Know

By Kate Gold and Wesley C. Shelton on Posted in California Labor & Employment Law, California Labor Code, CFRA, Coronavirus, COVID-19, Discrimination, Drug Policies, Drug Testing, Employee Handbooks, Employment Applications, Employment Policies, Leaves of Absence, New and Proposed Laws and Legislation, Paid Sick Leave, Pay equity
A new year brings new employment laws for California employers.  California employers will want to begin revising employee policies and handbooks now, so that they are prepared to comply with these new laws when the majority of them go into effect on January 1, 2023.  Here are five new employment laws that every California employer … Continue Reading

California Employment Laws Passed and Pending

By Tony Oncidi and Sehreen Ladak on Posted in California Labor & Employment Law, CFRA, Collective Bargaining, Coronavirus, COVID-19, Discrimination, Employee Benefits, FEHA, Hiring, Leaves of Absence, New and Proposed Laws and Legislation, Paid Sick Leave
It just wouldn’t be Fall without the passage of a flurry of new laws, shaking up the employment landscape in California.  As of the close of the legislative session on August 31, several “job killer” bills (so called by the California Chamber of Commerce as reported here and here) passed the state legislature and are … Continue Reading

California Creates Unelected Council to Set Minimum Wages/Working Conditions of 500,000 Fast Food Workers

By Tony Oncidi and Ariel Brotman on Posted in California Labor & Employment Law, California Labor Code, Collective Bargaining, Minimum Wage, New and Proposed Laws and Legislation, Wage and Hour
On September 5, 2022, Governor Gavin Newsom signed the Fast Food Accountability and Standards Recovery Act or FAST Recovery Act (AB-257).  In a breathtaking move, the state government, which is dominated at all levels by union-friendly politicians, will appoint a 10-member Council composed of employees, employers and “union activists” to set the minimum wages and … Continue Reading

EMPLOYMENT ARBITRATION AGREEMENTS REMAIN LEGAL IN CALIFORNIA – AT LEAST FOR NOW!

By Mark Theodore, Tony Oncidi and Wesley C. Shelton on Posted in Arbitration Agreements, California Labor & Employment Law, California Labor Code
As we previously reported here, in Chamber of Commerce of the U.S.A. v. Bonta, 13 F.4th 766 (9th Cir. 2021), a three member panel of the Ninth Circuit Court of Appeals resurrected California Labor Code Section 432.6, which prohibited employers from requiring California employees to agree to arbitrate their employment-related disputes. In a new twist, … Continue Reading

California Voters to Decide Future of PAGA in November 2024

By Mark Theodore and Michelle Lappen on Posted in California Labor & Employment Law, PAGA
The California Secretary of State announced on July 22, 2022 that a measure to replace the California Labor Code Private Attorneys General Act of 2004 (“PAGA”) qualified as an eligible statewide ballot measure for the November 2024 General Election ballot.  PAGA allows “aggrieved” employees to file a representative action on behalf of themselves and other … Continue Reading

Mayor Garcetti Signs “Healthcare Workers Minimum Wage Ordinance” Increasing Minimum Wage to $25

By Tony Oncidi and Ariel Brotman on Posted in California Labor & Employment Law, COVID-19, Minimum Wage, New and Proposed Laws and Legislation
On July 7, 2022, Mayor Eric Garcetti signed the “Healthcare Workers Minimum Wage Ordinance” (“Ordinance”) which, effective August 13, 2022, increases the minimum wage to $25 per hour for healthcare workers employed at privately-owned healthcare facilities within the City of Los Angeles.  Beginning January 1, 2024, the minimum wage will increase annually based on the … Continue Reading

California Supreme Court to Determine Scope of Employer Liability for At-Home Spread of COVID-19

By Kate Gold and Morgan Peterson on Posted in California Labor & Employment Law, Coronavirus, COVID-19, Negligence, Workers Compensation
Last week, the California Supreme Court agreed to decide two unique questions with far-reaching implications for employer liability: (1) may an employer be held liable to an employee’s spouse when an employee contracts COVID-19 in the workplace and then infects their spouse at home, and (2) does an employer have a duty of care to … Continue Reading
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