The California Supreme Court (“Supreme Court”) granted review of Hohenshelt v. Superior Court (2024) 99 Cal.App.5th 1319, which held the defendant’s payment of arbitration fees after thirty (30) days from issuance of the invoice entitled the plaintiff to withdraw from arbitration. The Supreme Court will decide whether the state law that permits waiver of arbitration when fees are paid after thirty (30) days is pre-empted by the Federal Arbitration Act (“FAA”).(more…)
Employment Law
New Guidance from the United States Department of Labor Regarding Independent Contractor Classification
On January 10, 2024, the Wage and Hour Division of the United States Department of Labor (“DOL”) issued a new “Final Rule” addressing analysis for classifying workers as either independent contractors or employees under the federal Fair Labor Standards Act (“FLSA”). The Final Rule went into effect on March 11, 2024.(more…)
The U.S. Supreme Court Decision in Muldrow v. City of St. Louis Lowers the Standard for Employees Challenging Job Transfers under Title VII of the Civil Rights Act of 1964
On April 17, 2024, the Supreme Court issued a unanimous decision in Muldrow v. City of St. Louis, holding that an employee alleging a discriminatory job transfer must show that the transfer inflicted “some harm with respect to an identifiable term or condition of employment,” but, that such harm “need not be significant” to violate Title VII of the Civil Rights Act of 1964 (“Title VII”). Muldrow v. City of St. Louis, Missouri, 601 U.S. —-, at *2 (2024). (more…)
The Federal Trade Commission Bans Noncompete Agreements Nationwide
On April 23, 2024, the Federal Trade Commission (“FTC”) issued a final rule banning noncompete agreements in the United States, effective September 4, 2024. Immediately after the FTC approved the final rule, multiple entities filed lawsuits challenging the rule and seeking injunctions to postpone the effective date. Currently it is unclear if and when the rule will go into effect, but employers should be prepared for the rule to become effective.(more…)
Employment Law Update for 2024
The California Legislature has been busy creating new rights for employees and responsibilities for employers. As employers prepare for 2024, and update their policies and practices, there are a number of new laws to consider. Unless otherwise noted, all law discussed below will be effective as of January 1, 2024.(more…)
New California Statutes Will Impose Hightened Requirements and Consequences on Companies With Improper Noncompete Agreements
California’s strong public policy disfavors noncompete agreements. Under California Business & Professions Code Section 16600 “every contract by which any one is restrained from engaging in a lawful profession, trade, or business of any kind is to that extent void.” Recent California law significantly increases the stakes for employers who utilize such improper covenants in their employee contracts. (more…)
New Bill Signals Widening Gulf Between California and the United States Supreme Court on Arbitration Policy
On July 17, 2023, the California Supreme Court issued its ruling in Adolph v. Uber Technologies, Inc. (2023) 14 Cal. 5th 1104. In that opinion, the Court departed from the United States Supreme Court’s guidance in Viking River Cruises, Inc. v. Moriana (2022) 142 S.Ct. 1906 and, contrary to the reasoning of Viking River, found that a plaintiff suing under the Private Attorneys General Act of 2004 (“PAGA”) retains standing to pursue his or her representative PAGA claims in court, even when his or her individual PAGA claims are compelled to arbitration. (See our prior discussion on this issue here.)(more…)
2023 Employment Law Update – New California Statutes to Consider
2023 will bring a variety of new California labor and employment laws that employers will need to stay abreast of as they review and update their policies and practices. This blog spotlights key pieces of legislation that will come into effect in the new year. Unless otherwise stated, the following new laws will take effect January 1, 2023.(more…)
California Enacts Law Prohibiting Discrimination Against Off Duty Cannabis Use
Effective January 1, 2024, AB-2188 will amend Government Code section 12954 and make it unlawful for an employer to discriminate against a person in hiring, termination, or any term or condition of employment, or otherwise penalizing a person, if the discrimination is based upon:(more…)
Employees Entitled to Protected Leave Under the California Family Rights Act and the Healthy Workplaces, Healthy Families Act of 2014 for a “Designated Person”
Assembly Bill (“AB-1041”), signed into law by Governor Newsom on September 29, 2022, expands the list of individuals for which an employee can take leave under the California Family Rights Act (“CFRA”) and the Healthy Workplaces, Healthy Families Act of 2014 (“Mandated Paid Sick Leave”). (more…)