As a follow-up to Executive Order N-33-20, on March 20, Governor Newsom’s office released a 14-page report which provides additional guidance regarding “essential business operations” in California. Originally, the Governor’s Executive Order directed California workers to the Cybersecurity and Infrastructure Security Agency (CISA) website to determine whether they qualify as essential to one of 16 federal critical infrastructure sectors. The 14-page report narrows “essential business operations” to workers in 13 sectors: (1) Healthcare/Public Health, (2) Emergency Services; (3) Food and Agriculture, (4) Energy, (5) Water and Wastewater, (6) Transportation and Logistics, (7) Communications and Information Technology (8) Other Community-Based Government Operations and Essential Functions, (9) Critical Manufacturing, (10) Hazardous Materials, (11) Financial Services, (12) Chemical, (13) and Defense Industrial Base. READ MORE
Kourosh Jahansouz is a Managing Associate in the Labor & Employment Group and is based in the San Francisco office.
Kourosh focuses his practice on defending employers against claims alleging unlawful harassment and discrimination, wrongful termination, and wage and hour. He also counsels employers and offers practical solutions to address a wide range of employment issues, including new and developing areas of the law.
Prior to joining Orrick, Kourosh was an associate at Sheppard Mullin Richter & Hampton.
Posts by: Kourosh Jahansouz
On the evening of March 19, 2020, California Governor Gavin Newson issued Executive Order N-33-20, which requires all individuals living in the State of California to stay home or at their place of residence except “as needed to maintain continuity of operations of the federal critical infrastructure sectors,” as outlined by the Cybersecurity and Infrastructure Security Agency (CISA). This order, which applies to 40 million California residents, is intended to slow the spread of the novel Coronavirus (COVID-19). In issuing the Order, Governor Newsom suggested that 56 percent of Californians (more than 25 million people) could be infected over the next eight weeks. Although the Order states it is to go into effect immediately and shall stay in effect until further notice, Governor Newsom also emphasized this is “not a permanent state.” READ MORE
On February 6, 2020 the U.S. Court of Appeals for the Third Circuit upheld a Philadelphia pay equity ordinance banning employers from inquiring into prospective employees’ prior pay or relying on prior pay in making compensation decisions unless candidates knowingly and willingly disclose the information. In upholding the ordinance, the Third Circuit vacated a lower court decision that enjoined enforcement of the inquiry provision on the grounds that it violated employers’ First Amendment free speech rights. While the Third Circuit acknowledged that the ordinance implicated First Amendment rights, the court found that there was “a plethora of evidence” provided by the city to meet its burden of clearing intermediate scrutiny for commercial speech. Consequently, it was reasonable for the city to conclude that the inquiry provision would address gender and race-based wage gaps based on experiments, witness testimony, and historical research concluding as much. READ MORE
As was reported late last year, the Department of Labor (“DOL”) in 2018 published an Opinion Letter (FLSA2018-27), effectively rescinding the agency’s 80/20 tip credit rule. In general, the tip credit rule permits employers in tip-producing industries, such as the restaurant industry, to compensate employees at a minimum rate of $2.13 per hour, and to take a credit against the tips an employee receives. An employer is additionally responsible for the remainder of an employee’s wages, if any, between what the employee earned in wages and tips combined, and the federal minimum wage. READ MORE
California law has long prohibited harassment and discrimination based on national origin. However, articulating the distinction between race and national origin, and identifying conduct that may constitute national origin discrimination in particular, can be challenging. Concerned that national origin was too “opaque,” the state Fair Employment and Housing Council recently proposed new regulations to explicitly define national origin under California law and provide additional examples of prohibited practices. Following a year-long notice and comment period, these new regulations took effect July 1, 2018. See Cal. Code Regs. tit. 2, §§ 11027.1, 11028. READ MORE
In a break from federal law, the California Supreme Court clarified in Alvarado v. Dart Container Corp. the proper formula for calculating flat-rate bonuses into overtime pay under California law. The Court adopted the Plaintiff’s position and held that, for purposes of calculating the per-hour value of a flat rate bonus, the divisor should be the number of nonovertime hours the employee worked in the pay period rather than all hours worked during the pay period. READ MORE