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
On December 15, 2021, the United States Supreme Court granted certiorari in Viking River Cruises, Inc. v. Moriana, a case which asks whether the Federal Arbitration Act (“FAA”) requires the enforcement of bilateral arbitration agreements providing that an employee cannot raise representative claims, including under the California Private Attorneys General Act (“PAGA”).
Continue Reading Supreme Court Grants Review in Important Arbitration Case Regarding PAGA
State and federal governments continue to roll out new COVID-19 laws, regulations, and executive orders. As a result of the ever-changing legal landscape, employers are left confused at the multitude of rules they must follow and obligations they now face. Are we considered an essential business to remain open for business? Do we reduce employees’ hours, furlough, or lay off employees to cut costs and remain in business? Does the WARN Act apply in our situation? Can employees go on emergency leaves of absence? How does emergency paid sick leave work? If you are left scratching your head, this comprehensive checklist will help you navigate through these challenging times.
Continue Reading Coronavirus Response: A Checklist for California Employers
On July 22, 2015, Governor Brown signed AB 2535 that clarifies which employees for whom an employer must track hours worked and record those hours on their wage statements. The bill will become effective January 1, 2017.
Prior to this amendment, Labor Code section 226 required that an employee’s paystub include hours worked for all employees except individuals who are paid “solely” by salary and are “exempt from payment of overtime” under Labor Code section 515(a) or the governing wage order. As written, this seemed to require hours on the paystub for exempt outside sales people and executives who are not paid solely by salary but receive bonuses and stock options even though these employees do not record hours worked and hours worked is not a relevant figure when calculating their wages. In fact, in Garnett v. ADT, LLC, 139 F. Supp. 3d 1121 (2015), the district court held that exemption in Labor Code section 226 did not apply to exempt outside salespersons since they were paid solely by commission (and not salary) and, therefore, had to have their total hours worked included on their paystubs. The Garnett court noted in its decision that, “[w]hile the usefulness of reporting total hours worked for employees paid solely by commission is not entirely clear, it is nonetheless required by Labor Code Section 226 (a).”Continue Reading Governor Brown Signs Bill Clarifying Wage Statement Requirements for Exempt Employees
On August 27, 2015, the National Labor Relations Board (“NLRB”) issued its highly anticipated decision in Browning-Ferris Indus. of California, et al. v. Sanitary Truck Drivers, 362 NLRB No. 186. In deciding to “revisit and revise” its joint-employer standard, the NLRB held in a 3-2 decision that Browning Ferris (BFI) was a joint employer of workers provided by a staffing agency at a BFI recycling plant.
Continue Reading NLRB Broadens its Test for Determining Joint-Employer Status
On September 25, 2013, California Governor, Jerry Brown, signed a bill (Assembly Bill No. 10) that will raise the hourly minimum wage up 25% over the next few years. First, the minimum wage will increase in less than one year, on July 1, 2014, from $8.00 per hour to $9.00 per hour, and then only one and one-half years later, on January 1, 2016, up another one dollar to $10.00 per hour. This new law – which amends Labor Code section 1182.12 – creates the first increase to California’s minimum wage in six years. Not only will the new law increase the take-home pay for many non-exempt hourly workers in California, but employers need to be mindful of the new law’s impact on lower-salaried exempt employees and other potential pitfalls.
Continue Reading Passage of Increase in California’s Minimum Wage Could Impact More Than Just Hourly, Minimum Wage Workers