California Employment Law Update

Category Archives: Wage and Hour

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It May Be Time To Update Those Arbitration Agreements Again!

Back in the “good old days,” arbitration agreements barred just about any type of civil litigation that was filed in court. Then, as we reported in 2014, the California Supreme Court determined that Private Attorneys General Act (“PAGA”) claims are immune from arbitration in Iskanian v. CLS Transp. Los Angeles, LLC – which, unsurprisingly, led … Continue Reading

Employers Face New Accommodation Requirements For Nursing Mothers

In our recent blog post, we highlighted legislation that will impact employers this year related to nursing and pregnant employees: the Providing Urgent Maternal Protections for Nursing Mothers Act (the “PUMP Act”) and the Pregnant Workers Fairness Act (the “PWFA”).  As this legislation becomes effective—with the PUMP Act taking effect on April 28, 2023 and … Continue Reading

Reminder: Employer Considerations When Contemplating Delaying Payroll

On March 10, 2023, financial markets were rocked by uncertainty over the future of certain significant financial institutions.  Among other concerns, bank failures raise the prospect of temporary or long-term cash flow problems for account holders, as deposits totaling more than $250,000 exceed the amount covered by the Federal Deposit Insurance Corporation.  Often, companies’ largest … Continue Reading

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

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

Court Puts New Controversial Fast-Food Worker Law on Hold

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

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

Congress Adds Additional Protections for Pregnant Workers

In the recent $1.7 trillion Omnibus Spending Bill passed by Congress and signed into law by President Biden, two measures were included aimed at providing additional workplace protections for pregnant employees. The first measure is the Pregnant Workers Fairness Act (the “PWFA”) which applies to employers with 15 or more employees. The PWFA extends the … Continue Reading

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

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

California Minimum Wage Increases for 2023

Effective January 1, 2023, California employers will be required to meet new minimum wage requirements, at both the state and local level.  This increase in the minimum wage affects not only non-exempt employees, but also the minimum annual salary requirement for overtime exempt employees. Increase and Consolidation of the California Minimum Wage Previously, the State … Continue Reading

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

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

California Court of Appeal Dismantles Rounding Where Accurate Timekeeping Records Exist

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

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

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

May 2022 California Employment Law Notes

We invite you to review our newly-posted May 2022 California Employment Law Notes, a comprehensive review of the latest and most significant developments in California employment law. The highlights include: Former UCLA Physician Can Proceed With Whistleblower Claims Former Employee Adequately Alleged Disability Under The ADA California Resident May Rely Upon Labor Code § 925 … Continue Reading

Court Improperly Remanded Action To State Court Based On Amount In Controversy Under CAFA

Jauregui v. Roadrunner Transp. Servs., Inc., 28 F.4th 989 (9th Cir. 2022) Griselda Jauregui filed this putative class action in California state court against Roadrunner Transportation Services on behalf of all current and former hourly workers in California. The complaint alleged numerous violations of California wage and hour law. Roadrunner removed the case to federal … Continue Reading

California Resident May Rely Upon Labor Code § 925 To Challenge Non-Compete

LGCY Power, LLC v. Superior Court, 75 Cal. App. 5th 844 (2022) California resident Michael Jed Sewell worked as a sales representative and sales manager for LGCY Power, which is headquartered in Salt Lake County, Utah. In 2015, Sewell signed a “Solar Representative Agreement,” which included noncompetition, nonsolicitation and confidentiality provisions as well as Utah … Continue Reading

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

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

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

Spring Showers Bring Job Killer Bills to California

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?

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

March 2022 California Employment Law Notes

We invite you to review our newly-posted March 2022 California Employment Law Notes, a comprehensive review of the latest and most significant developments in California employment law. The highlights include: California Relaxes Standard For Proving Whistleblower Claims At-Will Employee Can Proceed With Labor Code § 970 Claim Doctor Proved Age/Race/Gender Discrimination Former Owner of Company Is … Continue Reading

Court Properly Denied Class Certification For Wage Hour Claims Involving Rounding

Cirrincione v. American Scissor Lift, Inc., 73 Cal. App. 5th 619 (2022) Jason Cirrincione filed a putative class action lawsuit against his former employer for various wage and hour violations, including failure to pay overtime and minimum wages, meal and rest breaks, waiting time penalties, Cal. Labor Code § 2802, etc. These claims were predicated … Continue Reading

Heightened PAGA Penalties Are Inapplicable For Most Wage Statement Claims

Christmas came early this year for California employers.  Bucking the trend of unrelentingly bad news for employers in the state, the California Court of Appeal has held that the default (lower) penalties found in the Labor Code Private Attorneys General Act (“PAGA”) and not the heightened penalties set forth in Labor Code section 226.3 (“Section … Continue Reading

Good Tidings for the Holidays! The U.S. Supreme Court Finally Will Review (and May Bury) PAGA’s Anti-Arbitration Rule

While the California Supreme Court has repeatedly upheld arbitration agreements with class action waivers (as they must under the Federal Arbitration Act), in a now infamous (and controversial) decision from 2014, the court held that an arbitration agreement could not include an enforceable waiver of an employee’s right to bring a “representative” action under the … 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
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