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In Esparza v. KS Industries, L.P., 2017 WL 3276363 (2017), the Fifth District Court of Appeal recently clarified the arbitrability of certain claims brought under the Private Attorneys General Act (“PAGA”).  Previously, in Iskanian v. CLS Transp. Los Angeles, LLC, 59 Cal.4th 348 (2014), the California Supreme Court held that PAGA representative actions for civil penalties are not subject to arbitration (the “Iskanian rule”). This decision led to a spate of actions by plaintiffs who signed valid and enforceable arbitration agreements asserting only PAGA claims, in an attempt to circumvent arbitration. This has been a significant hurdle to many employers, who have been forced to defend PAGA-only actions in civil court, despite the fact that their employees signed valid and enforceable arbitration agreements. Esparza offers a potential carve out to Iskanian that employers should be aware of.
Continue Reading Court Of Appeal Holds That Claims To Recover Wages Under Labor Code Section 558 Brought Through The Private Attorneys General Act May Be Arbitrated

[UPDATE] On March 27, 2017, President Donald Trump signed into law a Congressional Review Act (“CRA”) resolution repealing the so-called “blacklisting” rule, which would have imposed strict labor reporting and other requirements upon government contractors. This was followed by an Executive Order (“EO”) signed by President Trump the same day, effectively nullifying President Barack Obama’s Fair Pay and Safe Workplaces EO that first called for the blacklisting rule. For additional details regarding the repeal, please see the April 26, 2017 blog article.

On August 25, 2016, the United States Department of Labor (“DOL”) and Federal Acquisition Regulatory (“FAR”) Council published “Guidance for Executive Order 13673, ‘Fair Pay and Safe Workplaces’” (“final rule”).  Also referred to as the “blacklisting” rule, it imposes strict disclosure guidelines and requires that both prospective and existing contractors – as well as subcontractors – disclose violations of federal labor laws that resulted in administrative merits determinations, civil judgments, or arbitral awards or decisions.  The final rule also requires that contractors and subcontractors disclose specific information to workers each pay period regarding their wages and prohibits contractors from requiring that their workers sign arbitration agreements that encompass Title VII violations and claims of sexual assault or harassment.


Continue Reading Agencies Publish Strict New Reporting Guidelines for Government Contractors

Assembly Bill 1513, will significantly change the requirements governing the payment of piece-rate compensation in California beginning January 1, 2016.  AB 1513 creates Labor Code section 226.2 which sets forth requirements for the payment of a separate hourly wage for rest and recovery periods and for “other nonproductive time” worked by piece-rate employees.  AB 1513 defines “other nonproductive time” as “time under the employer’s control, exclusive of rest and recovery periods, that is not directly related to the activity being compensated on a piece-rate basis.”
Continue Reading Changes to California’s Piece-Rate Compensation Requirements