California Developments

San Francisco “Flexible Workplace” Measure May be Tip of the Iceberg of Increasing Local Employment Regulation

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Pen and Calculator

October 2013, the San Francisco Board of Supervisors unanimously approved the “Family Friendly Workplace Ordinance,” which if signed by the mayor will expand protections for workers with family care-giving duties and require employers to take requests for flexible work arrangements seriously. The measure creates a new, “only in San Francisco” protected category of workers that employers will likely have to keep in mind when making workplace decisions, as Mayor Ed Lee has indicated his intention to sign the measure into law.   READ MORE →

Governor Brown Expands Paid Family Leave Eligibility, Boosts Minimum Wage, and Grants Overtime to Nannies

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California’s Paid Family Leave Now Covers More Kin 

Currently, through California’s Paid Family Leave (“PFL”) insurance program, workers may collect up to six weeks of partial wage replacement benefits while taking leave under the Federal Family Medical Leave Act (“FMLA”) or California’s Family Rights Act (“CFRA”) to care for a seriously ill child, spouse, or registered domestic partner, or to bond with a minor child within one year of birth or the placement of the child in connection with foster care or adoption. On September 24, 2013, Governor Brown signed SB 770, expanding the PFL program to cover siblings, grandparents, grandchildren and parents in-law. Note, however, that PFL does not provide leave rights. CFRA was not similarly amended and, as with FMLA, only provides protected leave with reinstatement rights when taken to care for a seriously ill child, spouse, or registered domestic partner, or to bond with a minor child within one year of birth or the placement of the child in connection with foster care or adoption (among other things). Thus, employees who take leave to care for a sibling, grandparent, grandchild, or parent in-law, though they may receive partial wage replacement, will not be afforded job protection and reinstatement rights unless provided under an employer plan. READ MORE →

Employers Beware: You May be Liable for Your Employees’ Tortious Off-Duty Conduct during Their Commutes

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People Walking

In Moradi v. Marsh USA, Inc., the California Court of Appeal concluded that employees who are required to use their personal vehicles to travel to and from the office and make other work-related trips during the day are acting within in the scope of their employment when they are commuting to and from work. READ MORE →

A Midsummer Night’s Dream? Not So Much, For California Employers: Two New Employee-Friendly Bills Are Signed by Governor Brown

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Even in the summer months, the California legislature is busy changing the laws that affect the state’s employers. This summer, California’s governor signed into law two bills that should be of interest to all employers—one amending the definition of sexual harassment under the Fair Employment and Housing Act (“FEHA”) and the other amending a provision of the California Labor relating to the award of attorneys‘ fees and costs in actions for the non-payment of wages. READ MORE →

Further Down the Rabbit-Hole we go: California’s Troubling Treatment of Incentive-Based Compensation Systems

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On July 17, 2013, the California Supreme Court denied review of the Second Appellate District’s decision in Gonzalez v. Downtown LA Motors, 2013 Cal. App. LEXIS 257 (Cal. App. 2d Dist. Mar. 6, 2013), which addressed minimum-wage requirements for piece-rate workers. The Court of Appeal held that the employer had to pay a separate hourly rate of at least minimum wage during work time when piece-rate employees are engaged in compensable activity that does not directly produce piece-rates.  READ MORE →

Required Extension of Statutory Pregnancy Leave as a Reasonable Accommodation

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Calendar and Pushpin

In a case of first impression, the Second Appellate District in California, recently took an expansive view of pregnancy leave rights for employees. Under California’s Pregnancy Disability Leave Law (“PDLL”), employees disabled by pregnancy are entitled to up to four months of job-protected leave. Under the California Family Rights Act (“CFRA”), employees may take leave up to 12 weeks for baby bonding. CFRA, however, does not include pregnancy disability as a “serious health condition,” which means that employees cannot begin to use their CFRA leave until after the child is born. Pregnant employees who need additional leave beyond the four months provided by the PDLL, but before their CFRA leave begins, are now explicitly protected by the Fair Employment and Housing Act (“FEHA”). READ MORE →

California Court of Appeal Denies Wage-and-Hour Class Claims and Enforces Arbitration Agreement under Concepcion

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Gavel and Hundred-Dollar Bill

Employers in California have been watching closely to see how courts will apply the United States Supreme Court’s decision in AT&T Mobility v. Concepcion, 131 S. Ct. 1740 (2011), which held that the Federal Arbitration Act (FAA) preempted state law concerning the enforceability of class action waiver provisions, in which a party waives his or her right to arbitrate claims on a class basis. READ MORE →

2013 Updates to the FEHA California Pregnancy Regulations

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Amendments to California’s pregnancy regulations became effective on December 30, 2012, creating many new responsibilities for employers. While employers should take note of all of the amended regulations, some of the most significant changes are discussed below. READ MORE →

California Court of Appeal Overturns $1.3 Million in Damages and Attorneys’ Fees against Lucasfilm for Failure to Give Instruction on Business Judgment

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On December 10, 2012, in Veronese v. Lucasfilm Ltd., a California Court of Appeal overturned a Marin County jury’s verdict against Lucasfilm based on its finding that several errors in jury instructions prejudicially affected the verdict. Plaintiff had sued under the Fair Employment and Housing Act (“FEHA”) for pregnancy discrimination and related claims when she accepted, but did not start, in a temporary position at Lucasfilm. After eleven days of testimony and three days of deliberation, a jury awarded Veronese a total of $113,800 in damages and the trial court awarded Veronese $1,157,411 in attorneys’ fees. Lucasfilm challenged both the judgment and the fee award. Lucasfilm argued that the trial court judge erred in giving certain instructions proposed by Veronese, failing to give certain instructions proposed by Lucasfilm, and failing to instruct on certain issues submitted to the jury. Notably, this Court of Appeal decision appears to be the first California appellate decision reversing a jury verdict for an employee based on failure to give a business judgment instruction. READ MORE →