After the California Supreme Court’s recent decision in Iskanian v. CLS Transportation, which held that PAGA representative action waivers are unenforceable under California law, employers have struggled with whether to retain such waivers in their arbitration agreements. The answer to whether such waivers should be retained is not as straightforward as one might expect.
California labor code
To Your Health: California Enacts Broad Sick Leave Law
On September 10, 2014, Governor Brown signed into law the Healthy Workplaces, Healthy Families Act of 2014 (AB 1522), making California only the second state to require paid sick leave. In a press release, the Governor’s office stated that this bill will provide sick leave to about 40 percent of California’s workforce, or 6.5 million workers, who do not currently receive this benefit.
Seeking Credit for Deferred Commissions? You Might Get Declined
Last week, the California Supreme Court issued its decision in Peabody v. Time Warner Cable, Inc., deciding that employers may not apply commission payments to earlier pay periods for the purposes of establishing that an employee meets the minimum wage component under the commissioned employee exemption.
De Minimis Defense Closes Shop on Starbucks Barista’s Off-the-Clock Claim in the Central District of California
On March 7, 2014, Judge Feess of the Central District of California granted Defendant Starbucks’ motion for summary judgment on Plaintiff’s proposed class claims for unpaid wages under the California Labor Code. Plaintiff alleged that Starbucks failed to pay him for the brief time he spent closing the store after he clocked out at the end of every closing shift. His alleged off-the-clock closing duties included closing out of the store’s computer system, activating the alarm, walking out of store, locking the door, walking employees to their cars and staying with co-workers when they waited for rides. He also occasionally moved the store’s patio furniture inside and reopened the store for an employee who forgot personal belonging in the store. READ MORE
Paid in Singles for a Shot at the Big Leagues: Former Minor Leaguers Sue MLB for Wage-and-Hour Violations
Spring training is just around the corner and major leaguers have already reported to their first workout. Meanwhile, an interesting development–three former minor leaguers have filed a lawsuit against Major League Baseball, Bud Selig, and three MLB teams, claiming that the MLB has failed to pay overtime and minimum wages in violation of the FLSA and various state labor laws. According to the plaintiffs, the MLB “has a long, infamous history of labor exploitation dating to its inception” by hoarding players, depressing salaries, and preventing unionization of the minor leagues. See Complaint, Senne v. MLB, No. 3:14-cv-00608-JCS (N.D. Cal. Feb. 7, 2014), ECF No. 1. The case is presently before Magistrate Judge Joseph C. Spero. READ MORE
A Midsummer Night’s Dream? Not So Much, For California Employers: Two New Employee-Friendly Bills Are Signed by Governor Brown
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
Rule 23(b) or Not to Be: Wang v. Chinese News the Ninth Circuit’s Latest Decision to Reevaluate Certification after Wal-Mart
The Ninth Circuit’s recent decision in Wang v. Chinese Daily News is the latest to affirm that Wal-Mart v. Dukes is controlling in wage-and-hour class action cases. READ MORE
Ringing in the New Year: New California Laws Taking Effect in 2013
As the new year rounds the corner, it is important to stay abreast of the ever-changing legal landscape in California. We’ve previously posted about some recent amendments to the California Labor Code here but here are a couple of others that take effect on January 1, 2013 that employers should keep on their radars. READ MORE
California Computer Software Employee Overtime Exemption Rate to Increase 2.6% on January 1
The California Department of Industrial Relations (DIR) released its 2013 hourly rate and minimum salary requirement adjustment for exempt computer software employees. Beginning January 1, 2013, the minimum hourly rate of pay will increase to $39.90 to qualify for exemption, the minimum monthly salary will increase to $6,927.75, and the annual minimum salary will increase to $83,132.93. The 2.6 percent increase is based upon the California Consumer Price Index for Urban Wage Earners and Clerical Workers pursuant to California Labor Code § 515.5(a)(4).
In addition to the salary requirements, computer software employees must meet the remaining criteria set forth under Labor Code § 515.5 in order to be exempted from state overtime requirements.
Governor Brown Signs Amendments to California Labor Code
On Sunday, September 30, Governor Jerry Brown signed Assembly Bill 2674, Assembly Bill 1744, and Senate Bill 1255 into law, thereby amending California Labor Code sections 226, 1198.5, and 2810.5, and adding section 226.1 to the Labor Code. The changes go into effect on January 1, 2013. READ MORE