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Steven Gallagher

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Steven Gallagher is an associate in the Labor and Employment Practice Group in the firm's Century City office.

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A former Wal-Mart employee had his $102 million dollar verdict overturned in a recent win for California employers.  Roderick Magadia, the former employee, brought a class action and Labor Code Private Attorneys General Act (“PAGA”) complaint against Wal-Mart alleging, in part, that Wal-Mart issued deficient wage statements in violation of Labor Code Section 226.  The alleged defect was prompted by a “Myshare” bonus, a quarterly bonus based on non-discretionary metrics.  Because the bonus was non-discretionary, the law required Wal-Mart to factor the bonus into the “regular rate” of pay used to calculate the overtime premium.  But, since the bonus was earned and paid quarterly while the overtime premium on hourly pay is paid during every two-week pay period, the premium must be recalculated and adjusted with a supplemental payment each quarter.
Continue Reading Sheppard Mullin Helps Overturn $102 Million Dollar Verdict

On January 1, 2021, various new and amended employment laws will go into effect in California. Below is a summary of some of these laws that employers should make themselves aware of heading into the new year.  All laws discussed in this post go into effect on January 1, 2021, unless otherwise noted.
Continue Reading New Employment Laws to Look Out for in 2021

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