California Employment Law Update

Category Archives: California Labor & Employment Law

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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

The U.S. Supreme Court Says PAGA Representative Action Waivers Are Enforceable After All

By Tony Oncidi, Kate Gold, Philippe A. Lebel and Dylan K. Tedford on Posted in Arbitration Agreements, California Labor & Employment Law, FAA, PAGA, U.S. Supreme Court
On June 15, 2022, in Viking River Cruises, Inc. v. Moriana, Case No. 20-1573,_ U.S. _ (2022), by an 8-1 majority, the U.S. States Supreme Court held that the Federal Arbitration Act (“FAA”) preempts the California Supreme Court’s central holding in Iskanian v. CLS Transportation Los Angeles, LLC, 59 Cal. 4th 348 (2014), that actions brought … Continue Reading

Despite Employee-Friendly Test, California Court of Appeal Finds in Favor of Employer in Whistleblower Retaliation Claim

By Mark Theodore and Sehreen Ladak on Posted in California Labor & Employment Law, California Labor Code, Constructive Discharge, Employee Discipline, Retaliation, Whistleblowers, Wrongful Termination
As we reported here, earlier this year, the California Supreme Court confirmed a relaxed standard by which employees can prove whistleblower retaliation under Labor Code section 1102.5 in Lawson v. PPG Architectural Finishes, Inc., 12 Cal. 5th 703 (2022).  Despite the newly affirmed and extremely high burden for employers to prevail against Section 1102.5 claims … Continue Reading

L.A. Jury Delivers Mother of All Verdicts – $464 Million to Two Employees!

By Tony Oncidi and Morgan Peterson on Posted in California Labor & Employment Law, Jury verdicts, Retaliation
As we have previously reported, jury verdicts in employment cases have continued to skyrocket in recent months, and there is no sign they are leveling off. Late last week, a Los Angeles Superior Court jury awarded a total of over $464 million ($440 million of which was in punitive damages) in a two-plaintiff retaliation case. … Continue Reading

Several State “Job Killer” Bills Move One Step Closer to Passage

By Philippe A. Lebel and Michelle Lappen on Posted in California Labor & Employment Law, California Labor Code, Discrimination, Drug Policies, Drug Testing, Employment Policies, FEHA, New and Proposed Laws and Legislation, News, Payroll, Reporting Requirements, Retaliation, Workers Compensation
As covered previously here, the California Chamber of Commerce (“Chamber”) once again has identified a handful of “job killer” bills making their way through the legislative process.  This year’s crop of proposed legislation would, among other things, inflate employer data reporting requirements and further expand the scope of the Fair Employment and Housing Act (“FEHA”).  … Continue Reading

Employee with Mild Symptoms of COVID-19 Was Not “Disabled” Under California Law

By Tony Oncidi and Wesley C. Shelton on Posted in California Labor & Employment Law, Coronavirus, COVID-19, Disability, FEHA
In Michelle Roman v. Hertz Local Edition Corp., a United States District Court Judge for the Southern District of California granted summary judgment in favor of Hertz, and against former employee Michelle Roman, whose employment was terminated after she contracted COVID.  Roman claimed that her job should have been protected by the California Fair Employment … Continue Reading

California Supreme Court Rules Meal and Rest Break Premiums Constitute “Wages” Potentially Triggering Penalties for Violations

By Kate Gold and Ariel Brotman 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
In a much anticipated ruling, on May 23, 2022, the California Supreme Court issued its decision in Naranjo et al. v. Spectrum Security Services, Inc.  Previously, the Court of Appeal held that unpaid premium payments for meal period violations did not entitle employees to additional penalties for either inaccurate wage statements or failure to timely … Continue Reading

Nothing Escapes Inflation, Including California’s Minimum Wage

By Kate Gold, Philippe A. Lebel and Morgan Peterson on Posted in California Labor & Employment Law, Minimum Wage, Wage and Hour
California’s minimum wage currently is double its federal counterpart.  And, it’s going to keep climbing.  Late last week, Gov. Newsom announced that the Golden State’s minimum wage will increase to $15.50 for all employers (regardless of size), effective January 1, 2023.  Employers have inflation to thank for this latest hike. California currently mandates a minimum wage … Continue Reading

Judge Reduces $137 Million Race Harassment Verdict Against Tesla to $15 Million

By Tony Oncidi and Michelle Lappen on Posted in Arbitration Agreements, California Labor & Employment Law, Discrimination, Harassment, Jury verdicts, Verdict
A federal court judge pared down last year’s jaw-dropping $137 million damages award against Tesla in a racial bias lawsuit.  As covered previously here, a San Francisco federal court jury awarded $6.9 million in emotional distress damages and $130 million in punitive damages to a Black former elevator operator who worked at Tesla’s Fremont facility … Continue Reading

Spring Showers Bring Job Killer Bills to California

By Sehreen Ladak and Philippe A. Lebel on Posted in Attorney's Fees, California Labor & Employment Law, California Labor Code, Class Actions, Disability, Discrimination, Drug Policies, Drug Testing, Employment Policies, FEHA, New and Proposed Laws and Legislation, Payroll, Reasonable Accommodation, Reporting Requirements, Retaliation, Wage and Hour, Workers Compensation
Pablo Neruda once said “you can cut all the flowers but you cannot keep spring from coming.”  Likewise, California businesses’ protests against oppressive employment legislation don’t seem to stem the tide of the Legislature’s latest batch of anti-employer bills. The California Chamber of Commerce has just identified a host of recently introduced “Job Killer” Bills … Continue Reading

Gone Surfing: Could California Be the First State to Adopt a Four-Day Workweek?

By Philippe A. Lebel and Sehreen Ladak on Posted in California Labor & Employment Law, California Labor Code, Class Actions, New and Proposed Laws and Legislation, Overtime, Wage and Hour
In recent years, countries such as Iceland and Belgium and some domestic companies have experimented with the concept of four-day workweeks.  Now, a new bill proposed by California Assemblymembers Cristina Garcia (D-Bell Gardens) and Evan Low (D-San Jose), Assembly Bill 2932 (“AB 2932”), proposes to make a four-day workweek the new normal in California for … Continue Reading

Court Declares California Law Requiring Diverse Corporate Boards Unconstitutional

By Mark Theodore and Ariel Brotman on Posted in California Labor & Employment Law, Diversity and Inclusion
As discussed in our previous blog, on April 1, 2022, Los Angeles Superior Court Judge, Terry Green, granted summary judgment in favor of individuals represented by D.C.-based nonprofit Judicial Watch, declaring Assembly Bill 979 (“AB 979”) to be unconstitutional and granting an “injunction preventing the expenditure of taxpayer funds on the implementation of the measure.” … Continue Reading

Supreme Court Hears Oral Argument in Advance of Major Ruling on the Arbitrability of PAGA Claims

By Kate Gold, Philippe A. Lebel and Dylan K. Tedford on Posted in Arbitration Agreements, California Labor & Employment Law, PAGA, U.S. Supreme Court
Last week, the United States Supreme Court heard oral argument in Viking River Cruises, Inc. v. Moriana, Case No. 20-1573,_ U.S. _ (2022). The case addresses whether the Federal Arbitration Act (“FAA”) requires the enforcement of bilateral arbitration agreements that preclude an employee from bringing claims under the Private Attorneys General Act (“PAGA”) on a … Continue Reading
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