Wage and Hour

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On July 13, 2022, San Francisco’s amended Family Friendly Workplace Ordinance (FFWO) goes into effect.  All employers who conduct business and have employees working in the City and County of San Francisco or employees who telework, will need to comply with the FFWO.  It gives employees the right to request “flexible or predictable work arrangements” to assist with caregiving responsibilities.  The amendment creates significant changes to the existing FFWO – it enlarges the scope of an employer’s obligation under the ordinance, while also making it easier for employees to obtain modified schedule arrangements so they can effectively work and perform their caregiving responsibilities with relative ease.  Covered employers should take note of these changes to avoid scrutiny from the San Francisco Office of Labor Standards Enforcement (OLSE) and costlier penalties.…

Continue Reading Reminder: San Francisco’s Family Friendly Workplace Amended Ordinance Takes Effect July 2022

On May 23, 2022, in Naranjo v. Spectrum Security Services, Inc., P.3d (2022), the California Supreme Court issued an important wage-and-hour decision.  In Naranjo, the Court held that meal break premiums that an employer pays to an employee for missed, late, or short meal breaks constitute wages.  Consequently, an employer must report those premium payments on an employee’s wage statement pursuant to Labor Code section 226 and must promptly pay any owed premiums when an employee terminates employment or face waiting time penalties under Labor Code section 203.  Naranjo also concluded that the California Constitution’s default prejudgment interest rate of seven percent applies to calculating the prejudgment interest on claims for meal and rest break premiums.…

Continue Reading California Supreme Court Holds Meal Period Premiums Are “Wages” and May Trigger Wage Statement and Waiting Time Penalties

In March, U.S. Department of Treasury issued its annual General Explanations of the Administration’s Revenue Proposals, commonly known as the “Green Book.”  Among other revenue proposals, the Treasury addressed the treatment of on-demand pay arrangements or earned wage access (EWA) programs, which have risen in popularity in recent years (previously discussed in our Labor and Employment Blog).  EWA programs generally allow employees to access accrued wages before the end of their regular pay cycle. …
Continue Reading Treasury Department Proposes Non-Loan Status for Earned Wage Access

On May 2, 2022, the Supreme Court of the United States (“SCOTUS”) granted an employer’s petition for review to determine whether highly compensated employees are entitled to overtime compensation under the Fair Labor Standards Act (“FLSA”) if they are paid on a daily rate and not on a salary basis. …
Continue Reading SCOTUS to Determine Whether Highly Compensated Employees Are Entitled to Overtime Pay

In a recent opinion in Hill v. Walmart Inc., the Ninth Circuit affirmed summary judgment in favor of Walmart on Hill’s claim for waiting time penalties under Labor Code section 203, finding there was a good-faith dispute about whether Hill was properly classified as an independent contractor of Walmart. …
Continue Reading Good Faith Dispute Over Employment Relationship Allows Walmart to Escape Waiting Time Penalties

On March 11, 2022, the Department of Labor (“DOL”) proposed reverting the definition of “prevailing wage” under the Davis-Bacon Act to a definition used over 40 years ago. According to the DOL, the proposal is meant to modernize the law and “reflect better the needs of workers in the construction industry and planned federal construction investments.”[1]…
Continue Reading Turning Back the Clock: DOL Proposes Previous Davis-Bacon Prevailing Wage Definition

On February 7, 2022 a California Court of Appeal issued its decision in Hutcheson v. The Superior Court of Alameda County (UBS Financial Services, Inc.).  The case addresses the relation back doctrine in the context of a Private Attorneys General Act of 2004 (the “PAGA”) lawsuit, and will have important consequences for PAGA cases moving forward.
Continue Reading Employers May Face an Expanded Liability Period in PAGA Suits Under the Relation Back Doctrine

On February 18, 2022, the California Court of Appeal issued its decision in Jill LaFace v. Ralphs Grocery Company, __ Cal. App. 5th __ (2022), that provides important guidance in two areas. First, the Court made clear that plaintiffs asserting a claim under the Private Attorneys General Act (PAGA) are not entitled to a jury trial. In addition, the Court affirmed the lower court’s ruling rejecting the plaintiff’s suitable seating claim and found that an employee cannot create a “lull in operation” to trigger the provision of a seat by remaining idle instead of performing other expected job duties.
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Continue Reading California Court of Appeal Makes Clear that PAGA Plaintiffs are not Entitled to a Jury Trial and Provides Helpful Guidance on Suitable Seating Claims

On December 14, 2021, San Francisco’s Board of Supervisors unanimously passed legislation providing domestic workers with paid sick leave – the first of its kind in the United States.  The ordinance, called “Domestic Workers’ Equal Access to Paid Sick Leave,” establishes a “portable” paid sick leave benefit that allows people who work for multiple households to earn and consolidate benefits from several “hiring entities” and access that paid leave as they move between jobs.
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Continue Reading San Francisco Passes Measure Requiring Sick Leave for Domestic Workers – “First of Its Kind”

On September 27, 2021, California Governor Gavin Newsom signed Senate Bill 646 (“SB 646”), which creates a limited exception from the Private Attorneys General Act of 2004 (“PAGA”) for certain janitorial employees performing work under a collective bargaining agreement (“CBA”). SB 646 will go into effect on January 1, 2022.
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Continue Reading California Legislature and Governor Approves New PAGA Carve-Out