California Legislative Update

On September 30, 2020, California Governor Gavin Newsom signed Assembly Bill (“AB”) 1947 into law.  Effective January 1, 2021, AB 1947 will, among other things, authorize courts to award attorneys’ fees to whistleblowers who prevail against employers under Labor Code section 1102.5.  This amendment will likely incentivize employees (and their lawyers) to bring retaliation claims against California employers.  For our previous analysis of this bill, click here.

Continue Reading Whistleblower Retaliation Lawsuits Are About to Become More Expensive in California

On September 18 2019, Governor Gavin Newsom signed into law AB-5, which codified the California Supreme Court’s Dynamex v. Superior Court decision.  In Dynamex, the California Supreme Court adopted the so-called “ABC” test to determine coverage under the Industrial Welfare Commission (“IWC”) Wage Orders.  AB-5 expands the application of the ABC test to the entire California Labor Code and will take effect on January 1, 2020.
Continue Reading It’s Official: Newsom Expands The Definition of “Employee” Under California Law

Following the launch of the so-called “MeToo” movement, the California Legislature (controlled by a Democratic supermajority) has aggressively churned out new bills that further strengthen the ability for workers to sue their employers and increase the already-significant regulatory burden on these companies. This fall, the California Legislature is geared to send three significant bills to Governor Gavin Newsom that all California employers should carefully follow.
Continue Reading Three Major Workplace Bills to Land on Gov. Gavin Newsom’s Desk

The legalization of recreational use of marijuana in several states, including California, has left many employment policies vague and confused. This article offers insights to questions every employer should be asking in light of legalization.

California’s Rollout of Legal Marijuana

California voters passed the Adult Use of Marijuana Act (“Prop 64”) on November 8, 2016, legalizing recreational marijuana use. However, the California Bureau of Cannabis Control only began accepting, processing, and issuing licenses to commercial marijuana dispensaries as of January 1, 2018. As of April 2018, the Bureau has granted over 5,000 licenses for a variety of commercial uses, including retail sales and distribution.
Continue Reading It’s High Time to Update Your Marijuana Policies

Are you finally caught up on all of the new California laws taking effect in 2017?  Then begin preparing for 2018 because the California legislature has been busy drafting another set of employment related laws.  Here is a sneak peak of some of the more notable proposals that may be coming down the pike.  For now, these are only proposed laws that have neither passed the legislature nor been signed into law.  If they do become laws, their substance may ultimately change substantially.
Continue Reading 2018: California Employment Laws on the Horizon

The new year will bring along a variety of new obligations for California employers.  Although some of the new laws clarify existing law and provide helpful guidance, several impose additional requirements.  This update highlights key provisions of some of the more notable changes taking effect in 2017.  Links to the statutes and/or prior updates regarding the same are provided where applicable.
Continue Reading California Employers – New Year, New Rules in 2017

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