Recent Blog Posts
- California Passes New Law Making Contractors Jointly Liable for Their Subcontractors’ Failure to Pay Wages Continue Reading… On October 14, 2017, California Governor Jerry Brown signed Assembly Bill 1701, which will make general contractors liable for their subcontractors’ employees’ unpaid wages if the subcontractor fails to pay wages due. The new law will go into effect on January 1, 2018.
Specifically, section 218.7 has been added to the Labor Code. Subdivision (a)(1) provides the following:
For contracts entered into on or after January 1, 2018, a direct contractor making or taking a contract in the state for the erection,... More
- Nike Prevails in California Bag Check Case Continue Reading… Because of concerns about employee theft, many employers have implemented practices whereby employees are screened before leaving work to ensure they are not taking merchandise with them. While these practices are often implemented in retail stores, other employers use them as well when employees have access to items that could be slipped into a bag or a purse.
Over the last several years, the plaintiffs’ bar has brought a great many class actions and collective actions against employers across the country,... More
- California Court of Appeal Concludes That a Collective Bargaining Agreement Can Waive an Employee’s Right to Bring Statutory Claims in a Judicial Forum Continue Reading… As courts continue to address whether and when employers can compel employees to arbitrate their wage-hour claims, the California Court of Appeal has issued a decision in Cortez v. Doty Bros. Equipment Company, No. B275255, ___ Cal. App. 5th ___ (2017), that should be of great help to many California employers with collective bargaining agreements (“CBAs”) that include arbitration provisions.
The United States Supreme Court and multiple California courts have held that a CBA may require arbitration of an employee’s statutory... More
- Ninth Circuit Rejects DOL’s “80/20 Rule” on Sidework and Tipped Employees Continue Reading… Earlier today, the Ninth Circuit issued its opinion in cases involving the Department of Labor’s (“DOL”) “80/20 Rule” regarding what is commonly referred to as “sidework” in the restaurant industry. Agreeing with the arguments made by our new colleague Paul DeCamp, among others, the Ninth Circuit issued a decidedly employer-friendly decision. In so doing, it disagreed with the Eighth Circuit, potentially setting the issue up for resolution by the United States Supreme Court.
As those in the restaurant industry are aware,... More
- New Minimum Wage Laws Now In Effect In Several California Locales Continue Reading… Not all new laws go into effect on the first of the year. On July 1, 2017, new minimum wage laws went into effect in several locales in California. Specifically:
Emeryville: $15.20/hour for businesses with 56 or more employees; $14/hour for businesses with 55 or fewer employees.
City of Los Angeles: $12/hour for employers with 26 or more employees; $10.50 an hour for employers with 25 or fewer employees.
Los Angeles County (unincorporated areas only): $12/hour for employers with 26 or more employees;... More
- California Supreme Court Gives Employers a Break on “Day of Rest” Laws Continue Reading… It is no secret that California’s wage-hour laws are complex and often raise questions that employers, employees and the courts struggle with. As we wrote here more than a year ago, faced with questions regarding California’s ambiguous “day of rest” laws, the Ninth Circuit Court of Appeals threw up its hands and asked the California Supreme Court to clarify those laws.
Among the questions to be answered was one that impacts a great many employers, particularly those in the retail and... More
- Might New “Comp Time” Bill Actually Pass This Time? Continue Reading… A new “comp time” bill that would dramatically change when and how overtime is paid to private sector employees in many, if not most, jurisdictions has passed the House of Representatives. And unlike similar bills that have been considered over the years, this one might actually have a chance of passing. If it can get past an expected Democratic filibuster in the Senate, that is.
“Comp time” – short for “compensatory time” – is generally defined as paid time off that... More
- Another California Court Confirms There Is No Right To A Jury On Private Attorneys General Act Claims Continue Reading… Persons who live and work outside of California, including employment attorneys and the most seasoned of human resources personnel, are often confounded when they first learn about California’s Private Attorneys General Act (“PAGA”). And, for many, the first they learn about PAGA is when a PAGA lawsuit has been filed against their company.
The same series of questions and answers often follow:
A single individual can file a lawsuit against an employer alleging that all employees were subjected to certain violations of... More
- Supreme Court Set To Resolve Class Action Waiver Dispute Continue Reading… On January 13, 2017, the United States Supreme Court granted certiorari to hear three cases involving the enforceability of arbitration agreements that contain class action waivers.
Whether such agreements are enforceable has been a hotly contested issue for several years now, particularly in cases involving wage-hour disputes.
The Fifth Circuit has held that such waivers can be enforceable (NLRB v. Murphy Oil, Inc.), joining the Second and Eighth Circuits in that conclusion. The Seventh (Epic Systems, Inc. v. Lewis) and Ninth Circuits... More
- Department of Labor Appeals Texas Order Enjoining Enforcement of New Overtime Rules Continue Reading… We have written more than a few times here about the new Fair Labor Standards Act (“FLSA”) overtime rules that were scheduled to go into effect on December 1, 2016, dramatically increasing the salary threshold for white collar exemptions.
Most recently, we wrote about the November 22, 2016 nationwide injunction entered by a federal judge in Texas, enjoining the Department of Labor (“DOL”) from enforcing those new rules on the grounds that the DOL had overstepped its bounds.
The injunction threw the... More