To close out the 2021 legislative season, Governor Gavin Newsom signed dozens of bills into law, many of which directly affect California employers. In addition to the coverage in prior blog posts, which are linked below, this article provides an overview of key new employment laws.
Continue Reading 2021 California Legislative Update: California’s New Employment Laws
Ryan Krueger
Ryan Krueger is a partner in the Labor and Employment Practice Group in the firm's Los Angeles office.
California Department of Public Health Issues COVID-19 “Employer Playbook”
On July 24, 2020, the California Department of Public Health (“CDPH”) issued guidance entitled “COVID-19 Employer Playbook For a Safe Reopening.” The CDPH then revised the 32-page Employer Playbook a week later, on July 31st. A link to the most up-to-date guidance is available here.
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PAGA Claim Defeated Based on Insufficient Notice to the LWDA
Last month, the California Court of Appeal determined in Khan v. Dunn-Edwards Corp., 2018 Cal.App. LEXIS 44 (Cal. App. 2d Dist. Jan. 4, 2018)(certified for publication), that a former employee’s claim under the Private Attorneys General Act (“PAGA”) failed due to insufficient notice to the California Labor and Workforce Development Agency (“LWDA”).
Plaintiff’s Lawsuit & LWDA Letter
Plaintiff sued his former employer, Dunn-Edwards, in a proposed class action claiming that he, and others similarly situated, did not receive their final pay in a timely manner pursuant to Labor Code sections 201-203. After the lawsuit was pending, Plaintiff provided the following notice to Dunn-Edwards and the LWDA:
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New Year, New Minimum Wage Rates in California
Beginning January 1, 2018, the new California minimum wage rate for employers with 26 or more employees will be $11.00 per hour and the new California minimum wage rate for employers with 25 or fewer employees will be $10.50 per hour.
As we previously reported, effective January 1, 2017, the California state minimum wage began increasing yearly through January 1, 2022 for employers employing 26 or more employees. Effective January 1, 2018, the California state minimum wage will begin increasing yearly through January 1, 2023 for employers employing 25 or fewer employees.
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Sixth Circuit Provides Clarification On Legality Of Draw-On-Commission Policy
Last month, the Sixth Circuit revived a lawsuit brought under the Fair Labor Standards Act (“FLSA”) alleging that a retailer’s commission policy was unlawful in Stein v. hhgregg, Inc., 2017 U.S. App. LEXIS 19908 (6th Cir. Ohio Oct. 12, 2017). The decision provides support for the legality of taking a draw on an employee’s future commissions, and highlights the problem with having a policy that requires repayment of draws upon termination.
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California’s Equal Pay Law To Become More Stringent Effective January 1, 2016
Earlier this month, California Governor Jerry Brown signed the California Fair Pay Act, a bill making various changes to strengthen the California Equal Pay Act, which addresses gender wage inequality.
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Arbitration Agreement With PAGA Waiver And Opt Out Provision Deemed Unenforceable
Last month, a California Court of Appeal invalidated an arbitration agreement for including a representative action waiver combined with a non-severability clause.
Background
In Securitas Security Services USA, Inc. v. Superior Court (Edwards), 2015 Cal.App.LEXIS 190 (Cal. App. 4th Dist. Feb. 27, 2015), the employee, Edwards, signed an arbitration agreement from her employer, Securitas Security Services USA, Inc. The agreement featured the following relevant clauses.
Continue Reading Arbitration Agreement With PAGA Waiver And Opt Out Provision Deemed Unenforceable