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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…)
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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.
AB 1867—Supplemental Paid Sick Leave, Handwashing, & Small Employer Family Leave Mediation
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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…)
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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…)
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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…)
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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…)
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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…)
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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…)
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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…)
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Outgoing Governor Jerry Brown signed dozens of bills into law on Sunday, September 30, 2018. Many of these new laws are in response to the #metoo movement and specifically target sexual harassment. This blog summarizes the key features of these laws and their effect on employers as well as others, such as VCs, who can now be held legally responsible under the sexual harassment laws for harassing non-employee persons who work for actual or potential portfolio companies.(more…)