California Developments

CARES Act: What Do Employers Need to Know?

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On Friday afternoon, Congress passed the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”). The Act addresses the coronavirus pandemic by directing funds to address the strains on the health care system as well as alleviate the intense economic stress facing the country’s employers and workers. The President has stated that he will sign the bill immediately. This post focuses on those provisions that may impact employers. Below are answers to some questions that we expect employers will have about the CARES Act.

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COVID-19 Update: Senate Passes Families First Coronavirus Response Act

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On Wednesday, the Senate passed the Families First Coronavirus Response Act or H.R. 6201. The approved legislation has been sent to President Donald Trump’s desk for his signature. On Monday evening, the House passed its amended and final version of the bipartisan legislation, which we outline below. Stay tuned for updates as the approved legislation awaits the President’s signature. READ MORE →

What to do When Working From Home Won’t Work?

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If you’re like many this week you, your partner or roommates and your children of all ages may be working from home. Schools of all levels are closed and maybe have instituted distance learning. Day care centers are closed too. So are libraries, coffee shops, restaurants and other places remote workers go to think and work. Successful working is about more than just having good WiFi. So, what are the options if remote working is not working for your employees or they simply cannot do their job from home? READ MORE →

COVID-19 Update: House of Representatives Passes the Families First Coronavirus Response Act

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For other COVID-19 resources, please visit our resource center.

On March 14, 2020, the House of Representatives passed HR 6201, the Families First Coronavirus Response Act. Now, the Senate will consider the bill. As currently drafted, the bill will go into effect no later than 15 days after it is enacted and will remain in effect until December 31, 2020. Among other proposals, the bill proposes an emergency FMLA expansion, emergency paid sick leave and an employer tax credit, all of which would apply to employers with fewer than 500 employees. READ MORE →

A Preliminary Employer Victory: California Federal Court Issues Preliminary Injunction Enjoining Enforcement of AB 51

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On February 7, 2020, Chief U.S. District Judge Kimberly Mueller of the Eastern District of California issued a detailed order explaining the court’s January 31, 2020 grant of a preliminary injunction enjoining the State of California from enforcing AB 51.

As we explained in previous coverage, AB 51 was scheduled to go into effect on January 1, 2020, and would have prohibited mandatory workplace arbitration agreements. Under AB 51, employers may not, “as a condition of employment, continued employment, or the receipt of any employment-related benefit, require an applicant or employee to waive any right, forum, or procedure” for Fair Employment and Housing Act (“FEHA”) and Labor Code claims. Violations of the new statute carry hefty consequences, including criminal penalties. READ MORE →

AB 51 Update: Preliminary Injunction Granted

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On Friday January 31, 2020, Judge Kimberly Mueller of the Eastern District of California granted a preliminary injunction blocking the enforcement of California Assembly Bill 51 (AB 51) to the extent it applies to arbitration agreements covered by the Federal Arbitration Act, 9 U.S.C. §§ 1-16. AB 51 makes it unlawful to require workers or job applicants to enter into mandatory arbitration agreements covering claims under the California Fair Employment and Housing Act or the California Labor Code as a condition of employment or to obtain employment benefits. READ MORE →

The TRO on AB 51 is Still in Effect Following Oral Argument – With Modifications and Supplemental Briefing On The Way

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On Friday, January 10, 2020, Chief United States District Judge Kimberly Mueller of the Eastern District of California heard oral argument on plaintiffs’ motion for preliminary injunction.  As a result of clarifications made at the oral argument, the temporary restraining order (TRO) has been modified from its broad applicability to only enjoin defendants from enforcing AB 51 to the extent it applies to arbitration agreements covered by the FAA.  The revised TRO will remain in effect until January 31, 2020, at which point we might have a ruling on the preliminary injunction.  Judge Mueller concluded the oral argument by providing both parties the opportunity to submit supplemental briefing on two issues:  (1)  jurisdiction/standing; and (2)  severability.  As to the latter issue, Judge Mueller indicated she would accept specific proposals related to how the arbitration-related sections of the statute might be severed if she decided to grant the injunction on FAA preemption grounds. READ MORE →

It’s Heating Up: Several California Cities Prepare For Mid-Summer Minimum Wage Increases

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We are halfway through 2019, and while many employees prepare for summer vacation, California employers in various cities should brace themselves for an additional round of minimum wage increases on July 1, 2019.

Another raise, already?

As you may recall, on January 1, 2019, California raised the statewide minimum wage rate to $12.00 per hour for employers with 26 or more employees, and $11.00 per hour for employers with 25 or fewer employees. And the California minimum wage is set to increase to $15.00 per hour for all employers by January 2023. READ MORE →

AB 5 and AB 71: CA Legislature Dukes It Out Over Dynamex and Borello

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The battle between Dynamex and Borello continues. Two competing bills – Assembly Bill 5 (“AB 5”) and Assembly Bill 71 (“AB 71”) – each seek to codify the respective worker classification tests. On May 29, 2019, the California State Assembly overwhelmingly passed AB 5, a bill seeking to codify Dynamex Operations West, Inc. v. Superior Court of Los Angeles, which adopted the three-factor “ABC” test to determine a worker’s classification for wage order claims. Now the bill is headed to the state Senate. Meanwhile, AB 71, a bill seeking to codify S.G. Borello & Sons, Inc. v. Dept. of Industrial Relations, has thus far not enjoyed the same success. READ MORE →