California Employment Law Update

Category Archives: FLSA

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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

Meal/Rest Break Premiums Must Include All Forms of Remuneration

Ferra v. Loews Hollywood Hotel, LLC, 11 Cal. 5th 858 (2021) Like the federal Fair Labor Standards Act (FLSA), Cal. Lab. Code § 510 requires that employers pay non-exempt employees overtime at their “regular rate[s] of pay.”  Under a different section of the Labor Code and the Industrial Welfare Commission’s Wage Orders, employers also must … Continue Reading

March 2021 California Employment Law Notes

We invite you to review our newly-posted March 2021 California Employment Law Notes, a comprehensive review of the latest and most significant developments in California employment law. The highlights include: Trial Court Properly Dismissed Employee’s CFRA And Disability Discrimination Claims LAUSD Teacher Can Proceed With Claim For Disability Allegedly Caused By School’s Wi-Fi System Supreme … Continue Reading

Per Diem Benefits Should Have Been Included As Compensation In Calculating Overtime Rate

Clarke v. AMN Servs., LLC, 987 F.3d 848 (9th Cir. 2021) Plaintiffs who worked as travelling clinicians for AMN (a healthcare staffing company) were paid a weekly per diem benefit for weeks in which they worked at facilities located more than 50 miles from their homes.  In this class action, plaintiffs argued that the per diem … Continue Reading

White House “Regulatory Freeze” Memo Dooms DOL Independent Contractor Rule

As expected, the White House issued a memorandum to the heads of all executive departments and agencies within the first few hours after President Biden’s inauguration on January 20, requesting that they halt all non-emergency rulemaking and regulatory activity pending review by the new administration. The memo effectively does away with the U.S. Department of Labor (DOL)’s … Continue Reading

March 2020 California Employment Law Notes

We invite you to review our newly-posted March 2020 California Employment Law Notes, a comprehensive review of the latest and most significant developments in California employment law. The highlights include: Time Spent By Employees In Exit Searches Is Compensable Prior Pay Is Not A Defense To An Equal Pay Act Claim Constructive Termination And Joint … Continue Reading

Summary Judgment Properly Entered In Favor of DOL in FLSA Case

Scalia v. Employer Solutions Staffing Group, 2020 WL 992564 (9th Cir. 2020) Employer Solutions Staffing Group (“ESSG”) contracts with other companies to recruit employees and place them at jobsites for which ESSG provides administrative tasks such as payroll processing. ESSG conceded that it qualifies as an “employer” of the recruited employees under the Fair Labor … Continue Reading

Auto Dealership Service Advisors Are Exempt From Federal Overtime Requirements

Encino Motorcars, LLC v. Navarro, 584 U.S. ­­­___, 138 S. Ct. 1134 (2018) An amendment to the Fair Labor Standards Act (“FLSA”) exempts from its overtime requirements “any salesman, partsman, or mechanic primarily engaged in selling or servicing automobiles, trucks, or farm implements.” The U.S. Department of Labor (“DOL”) subsequently issued an opinion letter and … Continue Reading

Ninth Circuit Adopts “Primary Beneficiary” Test To Determine If Students Were Employees

Benjamin v. B&H Educ., Inc., 2017 WL 6460087 (9th Cir. 2017) Plaintiffs in this case are students of cosmetology and hair design at the Marinello Schools of Beauty (“B&H”) in California and Nevada. Plaintiffs claim that they are employees within the meaning of the Fair Labor Standards Act (“FLSA”) and under California and Nevada state … 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

Mortgage Underwriters Are Not Exempt From FLSA Overtime Requirements

McKeen-Chaplin v. Provident Sav. Bank, 2017 WL 2855084 (9th Cir. 2017) Mortgage underwriters at Provident Savings Bank review mortgage loan applications using guidelines established by Provident and investors in the secondary mortgage loan market, including Fannie Mae, Freddie Mac and the FHA. In this lawsuit for unpaid overtime arising under the federal Fair Labor Standards … Continue Reading

Employer’s Attorney May Be Liable For Retaliation Under FLSA

Arias v. Raimondo, 2017 WL 2676771 (9th Cir. 2017) José Arnulfo Arias worked as a milker for Angelo Dairy. The dairy did not complete and file a Form I-9 when it hired Arias. According to the appellate court, “[i]nstead of complying with federal law, the Angelos wielded it as a weapon to confine Arias in … 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

Auto Dealership Service Advisors Are Not Exempt From Federal Overtime Requirements

Navarro v. Encino Motorcars, LLC, 845 F.3d 925 (9th Cir. 2017) An amendment to the Fair Labor Standards Act (“FLSA”) exempts from its overtime requirements “any salesman, partsman, or mechanic primarily engaged in selling or servicing automobiles, trucks, or farm implements.”  The U.S. Department of Labor (“DOL”) subsequently issued an opinion letter and amended its … Continue Reading

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

Del Mar Fairgrounds/Horsepark Employees Are Exempt From Overtime Under The Amusement Exemption

Morales v. 22nd Dist. Agricultural Ass’n, 1 Cal. App. 5th 504 (2016) Jose Luis Morales and 177 other similarly situated plaintiffs sued their employer under Cal. Labor Code § 510 and the federal Fair Labor Standards Act (“FLSA”) for failure to pay them overtime. Plaintiffs’ employer is a California agency that owns and manages the … Continue Reading

Ninth Circuit Strikes Down Employer’s Class Action Waiver

Morris v. Ernst & Young, LLP, 2016 WL 4433080 (9th Cir. 2016) As a condition of employment, Stephen Morris and Kelly McDaniel were required to sign agreements not to join with other employees in bringing legal claims via arbitration against their employer. Morris and McDaniel filed a class and collective action against the company, alleging … Continue Reading

Auto Dealership Service Advisors May Be Exempt From Federal Overtime Requirements

Encino Motorcars, LLC v. Navarro, 579 U.S. ___, 2016 WL 3369424 (2016) An amendment to the Fair Labor Standards Act (“FLSA”) exempts from its overtime requirements “any salesman, partsman, or mechanic primarily engaged in selling or servicing automobiles, trucks, or farm implements.” Later, the U.S. Department of Labor (“DOL”) issued an opinion letter and amended … Continue Reading

Supreme Court Affirms $2.9 Million Class Action Judgment Based On Expert’s Study Of Time Spent On Donning And Doffing Activities

Tyson Foods, Inc. v. Bouaphakeo, 577 U.S. ___, 136 S. Ct. 1036 (2016) Following a jury trial, the employees in this class/collective action recovered $2.9 million in compensatory damages for violation of the Fair Labor Standards Act (“FLSA”). The employees alleged that they did not receive statutorily mandated overtime pay for the time they spent … Continue Reading

Firefighters Are Not Entitled To Overtime For Time Spent Taking Gear To Temporary Duty Stations

Balestrieri v. Menlo Park Fire Prot. Dist., 800 F.3d 1094 (9th Cir. 2015) Firefighters and emergency medical personnel sued the Menlo Park Fire Protection District, claiming that two of the district’s policies violate the Fair Labor Standards Act (“FLSA”). In their first claim, the employees claimed they were entitled to overtime for taking their gear … Continue Reading

Time Spent By Warehouse Workers In Security Screening Is Not Compensable Under Fair Labor Standards Act

Integrity Staffing Solutions, Inc. v. Busk, 574 U.S. ___, 2014 WL 6885951 (2014) The employer in this case, Integrity Staffing Solutions, Inc., provides staffing to Amazon.com throughout the United States. Plaintiffs Jesse Busk and Laurie Castro worked as hourly employees retrieving and packaging products at Integrity Staffing warehouses in Nevada. Integrity Staffing required its employees … Continue Reading
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