On November 21, 2025, the California Court of Appeal issued important guidance confirming that religious employers are not categorically exempt from wage and hour obligations under state law. In Lorenzo v. San Francisco Zen Center, the court addressed whether the First Amendment’s ministerial exception—a doctrine barring judicial intervention in certain employment disputes involving religious organizations—precludes wage claims brought by ministers. Significantly, the court held that California’s wage and hour statutes apply to religious staff engaged in commercial activities, absent specific evidence that enforcing these laws would infringe upon core religious governance or doctrine.Continue Reading No Blanket Immunity Under the “Ministerial Exemption” for Religious Employers Under California Wage and Hour Law—Insights from Lorenzo v. San Francisco Zen Center

The New York City Earned Safe and Sick Time Act (“ESSTA”) is expanding. On October 25, 2025, the ESSTA was amended to provide additional benefits to employees. These amendments go into effect on February 22, 2026, and will require covered New York City employers to adjust practices and leave policies in several key areas, including: (i) employers must grant an additional 32 hours of unpaid leave to new employees upon hire and to all employees at the beginning of each benefit year; and (ii) employers must comply with a broader range of reasons for which employees can use time under ESSTA.Continue Reading New York City Expands Sick Time Law

The 2024–2025 California legislative session came to an official close at midnight on October 13, 2025, when Governor Newsom’s deadline to sign or veto bills passed by the Legislature expired. Of the approximately 917 bills passed by the Legislature, the Governor signed 794 bills into law and vetoed 123 bills. The bills signed into law include several new employment-related laws for California employers.Continue Reading California’s 2024-2025 Legislative Session Closes with a Host of New Employment Laws for 2026

In a favorable decision for California employers, the Court of Appeal in Bradsbery et al. v. Vicar Operating, Inc., 110 Cal.App.5th 899, affirmed that employers and employees can enter into prospective, written, and revocable agreements to waive meal periods for shifts between five and six hours.[1] This ruling confirms what employers have long known regarding the legality of these agreements.Continue Reading California Court Upholds Prospective Meal Period Waivers

On June 27, 2025, the U.S. Department of Labor (“DOL”) announced a significant shift in its wage and hour enforcement policy, ending the longstanding practice of seeking liquidated damages in administrative, prelitigation proceedings under the Fair Labor Standards Act (“FLSA”). This move, outlined in Field Assistance Bulletin (FAB) No. 2025-3, represents a marked change in regulatory approach and has immediate implications for employers, employees, and the broader employment law community. The change is intended to bring the DOL’s enforcement activities back in line with its statutory authority while streamlining the resolution of wage and hour investigations.Continue Reading Department of Labor Curtails Liquidated Damages in Wage and Hour Investigations

A recent decision from the Second District California Court of Appeal highlights the importance of employers making timely payments of arbitration fees and offers a glimpse of one of the several potential outcomes of a case pending before the California Supreme Court involving the same issue.Continue Reading Another Published California Appellate Decision Finds Waiver of Right to Arbitrate Due to Untimely Payment of Fees, Ahead of California Supreme Court Ruling on Same Issue

Since our last coverage of “headless PAGA lawsuits”—i.e., lawsuits in which a plaintiff disavows his individual PAGA claim and opts to pursue the claim only on behalf of others—significant developments have further complicated the Private Attorneys General Act (“PAGA”) landscape. In Leeper v. Shipt, Inc., 107 Cal.App.5th 1001 (2024), the California Court of Appeal (Second District) rejected the so-called “headless” PAGA theory and held that every PAGA action must include both an individual and a non-individual claim even if the plaintiff disavows their own claim, thereby preventing plaintiffs from using this strategy to avoid arbitration. A conflicting decision was issued by another appellate court (the Fourth District) in Rodriguez v. Packers Sanitation Servs. LTD., LLC, 109 Cal.App.5th 69 (2025), reh’g denied (Mar. 19, 2025). This disagreement between the two appellate decisions has led to considerable uncertainty for litigants facing pre-June 2024 PAGA lawsuits, with the California Supreme Court now stepping in to provide much needed guidance.Continue Reading Will the California Supreme Court Put the Heads Back on Headless PAGA Suits?

On January 1, 2025, the statewide minimum wage increased to $16.50 per hour. With the change in the statewide minimum wage, the minimum exempt salary for California employees rose from $66,560 to $68,640 per year.Continue Reading California Minimum Wage Increases

California’s Private Attorneys General Act (PAGA)[1] allows “aggrieved employees” to sue their employers for Labor Code violations to collect civil penalties “on behalf of himself or herself and other current or former employees.” The issue of how to resolve PAGA claims where the employee and employer are subject to a binding arbitration agreement has been hotly contested over the last several years, as reported many times in this blog [see here, here, and here].Continue Reading PAGA Plaintiffs Cannot Avoid Arbitration by Bringing a “Headless PAGA Lawsuit”

Today, in the matter of E.M.D. Sales, Inc. v. Carrera, the United States Supreme Court held that employers must not meet a heightened standard of proof when defending claims under the Fair Labor Standards Act (“FLSA”). The decision is a victory for employers defending FLSA actions across the country.Continue Reading SCOTUS Hands Big Win to Employers Defending FLSA Claims

In less than two months, Donald Trump will be sworn in as the 47th President of the United States. President-elect Trump has already announced that he will nominate Republican Congresswoman Lori Chavez-DeRemer as his pick to serve as the next Secretary of the Department of Labor (“DOL”). It remains to be seen if the Trump DOL will continue the current administration’s targeting of the healthcare industry.Continue Reading Will the Trump Labor Department Continue the Current Sharp Focus on the Healthcare Industry?