Many California employers may be facing another minimum wage increase on July 1st. Earlier this year, California’s minimum wage was increased to $15.50 for all employers. However, local entities (like cities and counties) are allowed to establish a higher minimum wage rate for employees working within their jurisdiction. Starting on July 1, 2023, a number of localities will raise their minimum wage.Continue Reading July 1, 2023 Minimum Wage Increases in California Counties and Municipalities
In March, U.S. Department of Treasury issued its annual General Explanations of the Administration’s Revenue Proposals, commonly known as the “Green Book.” Among other revenue proposals, the Treasury addressed the treatment of on-demand pay arrangements or earned wage access (EWA) programs, which have risen in popularity in recent years (previously discussed in our Labor and Employment Blog). EWA programs generally allow employees to access accrued wages before the end of their regular pay cycle.
Continue Reading Treasury Department Proposes Non-Loan Status for Earned Wage Access
On September 27, 2021, California Governor Gavin Newsom signed Assemblywoman Lorena Gonzalez’s Assembly Bill 1003 into law. This new legislation establishes that intentional theft of wages or tips by employers is punishable as grand theft. The law takes effect on January 1, 2022.
Continue Reading New California Law Imposes Harsh Penalties for Employers Committing Intentional Wage Theft
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 July 17, 2017, U.S. Citizenship and Immigration Services (“USCIS”) issued a revised Form I-9. The new form must be used by September 18, 2017.
The revised form has only one substantive change. A new List C Document was added as an acceptable document – a Consular Report of Birth for a U.S. citizen who was born abroad.
The new I-9 form can be accessed here.
Employers must maintain a completed Form I-9 on file for every employee on their payroll who was hired after November 6, 1986 and for terminated employees during the required retention period. The purpose of the Form I-9 is to require the employer to establish the employee’s identity and authorization to work in the U.S.
Continue Reading USCIS Issues New I-9 Form: Commentary and I-9 Checklist for Employers
Earlier this year, we reported that New York City adopted The Establishing Protections for Freelance Workers Act, also known as the Freelance Isn’t Free Act, (the “Freelance Law”). As explained in our prior blog, under the Freelance Law, a company must: (1) provide a written contract when it contracts with a freelance worker for services worth $800 or more, (2) ensure that all payments to freelance workers are made on a timely basis and paid in full, and (3) prohibit any type of retaliatory or adverse action against freelance workers for exercising the rights granted to them under the Freelance Law.
Continue Reading UPDATE: NYC Adopts New Rules Implementing Freelance Law
The Establishing Protections for Freelance Workers Act, also known as the Freelance Isn’t Free Act, (the “Freelance Law”), which was touted by New York City Mayor Bill de Blasio as the first law in the nation aimed at protecting wage payment rights of freelance workers, became effective last Monday, May 15, 2017. The Freelance Law imposes specific requirements on companies located in New York City that contract with freelance workers, including requiring a written freelance contract, requiring companies to pay freelancers timely and in full, prohibiting retaliation against freelancers who exercise their rights under the Freelance Law, and creating penalties against companies who fail to comply with these requirements.
Continue Reading New Freelancer Law Imposes Additional Requirements For NYC Companies Contracting With Freelancers
Effective March 7, 2017, employers who pay wages via direct deposit and/or payroll debit card will need to comply with more stringent requirements. The New York State Department of Labor (the “NYSDOL”) recently issued final regulations governing the methods that New York employers may use to pay most “non-exempt” employees. The regulations impose a number of new requirements on employers who remit wages via direct deposit and payroll debit card, including new notice and consent requirements that employers must comply with prior to utilizing such payment methods.
Continue Reading New York State Department of Labor Issues Final Wage Regulations Imposing New Notice and Consent Requirements on Direct Deposit and Debit Card Wage Payments
On August 1, 2016, Massachusetts Governor Charles Barker signed the Act to Establish Pay Equity. The Act, which makes several important changes to Massachusetts wage laws, will go into effect on July 1, 2018.
Continue Reading Massachusetts – The Latest Jurisdiction to Update Its Pay Equity Laws
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
In March 2014, President Obama signed an executive order directing the Department of Labor to revise its aging rules governing overtime pay for white collar employees. The Department solicited comments from the public on an earlier draft in July 2015. Yesterday, the Department of Labor released the final version of the new rules. The new version includes a number of changes—some expected, but others less so.
Continue Reading DOL Makes Last-Minute Tweaks to New Overtime Exemption Rules