Workforce Bulletin

The U.S. Supreme Court has ruled that in determining exemption from the Federal Arbitration Act (“FAA”) for “workers engaged in foreign or interstate commerce” — commonly referred to as the “transportation worker” exemption—courts must focus on workers’ job duties rather than the industry in which they work. Bissonnette v. LePage Bakeries Park St., LLC. The ruling overturns a Second Circuit decision that held that the workers arguing exemption from the FAA did not qualify as transportation workers because they did not work in the transportation industry. The ...

As featured in #WorkforceWednesday: This week, we’re focused on California’s array of new and amended laws, including non-competes, employee cannabis usage, minimum wage, and protected time off:

New laws are changing the workplace in California, with looming deadlines for employers to meet. However, what happens in California tends not to stay in California. So, how can employers in California and beyond prepare?

Epstein Becker Green’s David Jacobs and Chelsea Hadaway provide a rundown of some of the new and amended California laws and the preemptive steps ...

An amended version of AB 1228 was passed in the California Legislature on September 14, 2023, [1] which would raise minimum wages for fast food workers and water down the authority of the new Fast Food Council that was created in a bill passed last year. AB 1228, originally introduced on February 16, 2023, was revised on September 11, 2023 after negotiations occurred between labor unions and the fast food industry. It significantly modifies provisions from the Fast Food Accountability and Standards Recovery Act (FAST Recovery Act) passed last year, which does not go into effect ...

An amended version of SB 525 was passed in the California Legislature on September 14, 2023, [1] which would raise minimum wages for health care workers across the state, starting June 1, 2024.  SB 525 is now awaiting signature or veto from California Governor Gavin Newsom, who has until October 14, 2023 to sign or veto this bill.

CHANGES IN MINIMUM WAGES:

SB 525 sets forth different tiers of minimum wage increases that vary based on the following:

• Large health systems and dialysis clinics:[2]
  • Minimum wage for covered health care employees shall be:
    • From June 1, 2024, to May 31, 2025 ...

The “regular rate of pay,” an often-misunderstood legal term of art, can be a thorn in the side of employers when calculating how to pay non-exempt hourly employees. These employees must be paid an overtime rate of at least one and a half times their regular rate of pay. Issues can arise when, in addition to their hourly wages, non-exempt hourly employees receive compensation that can change their regular rate of pay, and thus their overtime rate of pay, on a weekly basis. In some states, such as California, the regular rate of pay is also used when paying meal and rest break premiums ...

The current statewide minimum wage rate in California is $15.50 for all employers. However, some localities across the Golden State have set their own higher minimum wage rate. For many of these localities, the next increase is set to take effect on July 1, 2023.

For example, in Los Angeles County, the minimum wage increases from $16.04 to $16.78 in the City of Los Angeles and from $15.96 to $16.90 in unincorporated areas.  Here is a list of those local cities and counties raising their minimum wage rates:

Following the California Supreme Court’s remand of Naranjo v. Spectrum Security Services, Inc., the California Court of Appeal in that same case held that the defendant-employer had not committed “knowing and intentional” violations of the wage statement statute by not including meal period premiums on the wage statements and had not “willfully” paid all wages due at the end of employment by not previously paying meal period premiums that were owed. The Court held that, although the employer did not prevail on its defense that employees in a certified class action were subject to valid on-duty meal period agreements, neither waiting time penalties (capped at 30 days’ of wages at the daily rate of pay for each former employee) nor wage statement penalties (capped at $4,000 per employee) could be imposed against the employer given the good faith dispute that any meal period premiums were owed.

Pursuant to two voter initiatives, Michigan has a new minimum wage of $12 per hour, as well as a requirement that employees be provided up to 72 hours of paid sick leave – but those changes will not go into effect until February 19, 2023.

In 2018, two initiatives – the Improved Workforce Opportunity Wage Act (2018 PA 368) and the Earned Sick Time Act (2018 PA 369) – were presented to the Michigan legislature. The wage initiative raised the minimum wage to $12 per hour by 2022. The paid sick time initiative required most employers to provide up to 72 hours of paid sick leave per year.