The Federal Drug Administration’s (“FDA”) approval of the Pfizer-BioNTech COVID-19 vaccine clears the way for employers hesitant to mandate vaccines authorized under the FDA’s Emergency Use Authorization (“EUA”) to now require employees receive an FDA approved vaccine.(more…)
Blog
California Supreme Court Confirms Non-Discretionary Compensation Must be Included in the Calculation of the Regular Rate of Compensation for Premium Wages Paid for Missed Meal and Rest Breaks
The Ferra Decision
On July 15, 2021, the California Supreme Court unanimously held in Ferra v. Loews Hollywood Hotel, LLC that meal and rest break premiums must be paid at the “regular rate of pay,” which includes all non-discretionary payments. The decision has significant ramifications for California businesses, and highlights the urgent need for employers to review their meal and rest period practices to ensure compliance.(more…)
Employment Law Update – 2021
Several important new California employment laws have been passed in 2020. With exceptions as noted, the laws described below take effect on January 1, 2021.
COVID-19-Related Legislation
AB 1867—Supplemental Paid Sick Leave, Handwashing, & Small Employer Family Leave Mediation
Update for California Employers – There are New Emergency Regulations For The Handling Of COVID-19 Issues
On November 30, 2020, the Office of Administrative Law of the State of California approved a new set of Cal/OSHA emergency regulations that require employers to protect workers from hazards related to COVID-19. These regulations went into effect immediately and dramatically increase employers’ obligations in the ongoing battle against COVID-19. (more…)
California Court of Appeal Finds Overbroad Confidentiality Agreements Can Violate California’s Ban on Restrictive Covenants and be Grounds to Overturn an Arbitration Award
The California Court of Appeal recently ruled that a confidentiality provision in an employment agreement that restrains competition violates California’s non-compete statute (California Business & Professions Code § 16600) and, when an arbitrator does not address this violation of public policy, it is grounds to overturn an arbitration award. (more…)
California Voters Help App-based Transportation Companies by Approving Proposition 22
After the most expensive initiative campaign in state history, California voters approved Proposition 22 (“Prop 22”) by a 58% to 42% margin. Prop 22, backed by app-based rideshare and delivery companies including Uber, Lyft, DoorDash, and Postmates, classifies drivers for such companies not as employees but rather as independent contractors, while providing them with some additional protections beyond those typically applicable to independent contractors.(more…)
Case Alert — An Arbitrator’s Power To Order Third Party Discovery Depends On The Applicable Arbitration Language
On July 16, 2020, the California Court of Appeal held in Aixtron v. Veeco Instruments, 52 Cal.App.5th 360, as an issue of first impression, that arbitrators do not have the statutory power to issue pre-hearing discovery subpoenas to third parties unless authorized by the applicable arbitration provision.(more…)
The “ABC” Test, As Modified
In 2018, the California Supreme Court (in Dynamex Operations West, Inc. v. Superior Court) created a strict new test for determining whether a worker is an employee or an independent contractor, with a greater presumption that workers should be characterized as employees. As previously discussed, the “ABC” test presumes that a worker is an employee unless the an employer can meet its burden of proof with respect to all three of the following factors:(more…)
DOL Opinion Letter That Some Gig Workers Are Contractors Has Little Significance In California Given Dynamex
On April 29, 2019, the U.S. Department of Labor’s Wage and Hour Division (“DOL”) issued an Opinion Letter in response to an inquiry by a single, unnamed company that sought the Department’s guidance on whether its workers could properly be considered contractors under the Fair Labor Standards Act (“FLSA”), which mandates minimum wages and overtime pay for employees, but not for independent contractors.(more…)
The Rapidly Evolving Cannabis Laws: It’s Time to Think About Your Drug Use Policy
Federal, state, and local laws regarding the legalization of marijuana, and medical use of marijuana, are rapidly changing, which puts employers in a tough situation when they learn of an employee’s marijuana use. Federal law still classifies marijuana as a Schedule 1 drug, but California has legalized both recreational and medical marijuana use. As of today, California employers are not required to accommodate an employee’s use of medical marijuana outside of work. Given the rapid changes in the laws, however, it’s a good idea to make sure that your company’s drug use policy is up to date.(more…)