Minimum Wage

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The Chamber of Commerce has just released its preliminary list of “job killer” bills that have been proposed in the California Legislature. Don’t forget that California remains tied with Louisiana for the fourth highest rate of unemployment in the country at 6.7%.

This year’s list identifies 16 proposed laws, including four new “Increased Labor Costs” mandates and one “Increased Unnecessary Litigation Costs” mandate, which…

Von Nothdurft v. Steck, 2014 WL 2900132 (Cal. Ct. App. 2014)

Brenda Leigh Von Nothdurft worked as a resident manager of an apartment building owned by John Steck. Both signed a management agreement that provided that Von Nothdurft would be compensated in part by “free rent of a three bedroom apartment during the term as manager.” Von Nothdurft later sued, claiming she was not…

Minimum Wage Increased to $10.00 Per Hour By 2016

The minimum wage will increase in California from $8.00 to $9.00 per hour on July 1, 2014 and to $10.00 per hour on January 1, 2016 (AB 10).

Employer Recovery of Attorney’s Fees Is Further Restricted

California has amended Cal. Lab. Code § 218.5 to limit the circumstances under which an employer may recover…

Minimum Wage Increase

Gov. Brown has signed into law a measure that will increase California’s minimum wage from $8.00 per hour to $9.00 per hour on July 1, 2014, and to $10.00 per hour on January 1, 2016. So, California employers must prepare for a 25% increase in the minimum wage over the next two years.

The California Chamber of Commerce lists the new law…

The California Chamber of Commerce has just released its annual list of “job killer” bills that have been proposed in the California Legislature. This year’s list identifies 32 proposed laws, including six new “Costly Workplace Mandates.”

Chamber President and CEO Allan Zaremberg cautioned against “increase[d] uncertainty for employers and investors and . . . higher costs of doing business” while employers already face “higher health care premiums, higher workers’ compensation premiums, increased unemployment insurance taxes, and general tax increases.”

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.

Pitts v. Terrible Herbst, Inc., 653 F.3d 1081 (2011)

Gareth Pitts filed a class action against his employer, Terrible Herbst, Inc., alleging a collective action under the Fair Labor Standards Act for failure to pay overtime and minimum wages, a class action for violations of Nevada labor laws and a class action for breach of contract. Although Pitts claimed only $88 in damages for…

Martinez v. Combs, 49 Cal. 4th 35 (2010)

Plaintiffs are seasonal agricultural workers whom Munoz & Sons had employed during the 2000 strawberry season. The employees sued Munoz and two produce merchants (through whom Munoz sold strawberries) for alleged minimum wage violations. Following Munoz’s bankruptcy, plaintiffs contended that the produce merchants were joint employers along with Munoz; that plaintiffs were the third-party beneficiaries of the contract between Munoz and the merchants; and that they were parties to an oral employment agreement with one of the merchants. The California Supreme Court held that although the Industrial Wage Commission’s (“IWC”) wage orders do generally define the employment relationship in actions to recover unpaid minimum wages, the IWC’s definition of “employer” does not impose liability on individual corporate agents acting within the scope of their agency.

The California Division of Labor Standards Enforcement opined that an intensive educational and training program designed for young urban adults (18-24 years old) that places these individuals in internships with non-profit and for-profit businesses is exempt from the minimum wage law (interns receive a stipend but not a salary or wages). DLSE Opinion Letter (Apr. 7, 2010), available at http://www.dir.ca.gov/dlse/OpinionLetters-byDate.htm.

Rosas v. The Corporation of the Catholic Archbishop of Seattle, 598 F.3d 668 (9th Cir. 2010)

Cesar Rosas and Jesus Alcazar were Catholic seminarians who sued the Corporation of the Catholic Archbishop for, among other things, failure to pay them overtime wages under Washington state law. Based on the ministerial exception, the district court dismissed the case on the pleadings. The Ninth Circuit affirmed,…