Archives: Wage and Hour

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Is Your Piece Rate Plan Up To Date?

A piece rate exists where an employee is paid a fixed amount for each unit produced or action performed. Industries that commonly use piece rates include agriculture, automobile repair, trucking, manufacturing, and call centers. A new law went into effect this year requiring employers to provide additional pay for rest periods and recovery periods to … Continue Reading

Court May Make Reasonable Inferences about Employee’s Exempt, Non-Exempt Activities

A trier of fact can make reasonable inferences about employees’ duties to determine status for overtime pay under California labor law, the California Court of Appeal has ruled, affirming the trial court’s holding. Batze v. Safeway, Inc.,  No. B258732 (Cal. Ct. App. Apr. 4, 2017). A group of assistant store managers claimed they should have … Continue Reading

The City of Los Angeles Quietly Updates Its Rules and FAQs Regarding the Minimum Wage and Paid Sick Leave Ordinance

The sick leave landscape is constantly evolving, and the City of Angeles is no exception to that rule. This past month the City of Los Angeles Office of Wage Standards  revised its rules and regulations as well the FAQs regarding its Minimum Wage and Paid Sick Leave Ordinance. Learn what that means for employers here at … Continue Reading

California Court of Appeal Clarifies Wage Statement Requirements for Use of Unique Employee Numbers, Hourly Rates for PTO or Vacation

The California Court of Appeal has held that: (1) the use of payroll service provider generated unique employee file numbers on employee wage statements, in lieu of the employer’s internal employee identification number or last four digits of employee social security numbers, is legally permissible under California law; and (2) employers are not required to … Continue Reading

Separate Compensation for Rest Breaks and Non-Productive Time Required for Non-Exempt Commissioned Employees

Non-exempt commissioned employees must be paid separately and specifically for rest breaks and non-productive time, a California appellate court has ruled.  The court found that a compensation plan that does not pay employees directly for rest periods undermines the public policy of encouraging employees to take their rest breaks.  In Vaquero, et al. v. Stoneledge … Continue Reading

Upcoming Webinar: For California Employers, Pay Equity Keeps Getting More “Comp”licated

Understanding the recent California Fair Pay Act amendments and the rising tide of equal pay claims is “comp”licated. Employers want to ensure they pay employees fairly and without discrimination. The latest broad expansion of California’s Fair Pay Act (CFPA) is making sure employers do that, and more. In January 2016, the CFPA, went into effect … Continue Reading

Soto v. Motel 6 Operating, L.P.: Employees’ Wage Statements Need Not Include Accrued Vacation Time Prior to Termination

All California employers should know by now that if they have a paid vacation policy, the vacation benefits constitute a form of “wages” under California law. (See Murphy v. Kenneth Cole Productions, Inc. (2007) 40 Cal.4th 1094, 1103; Suastez v. Plastic Dress-Up Co. (1982) 31 Cal.3d 774, 784.)  California employers are also likely readily familiar … Continue Reading

Complimentary Webinar Series: California Legal Update

The California employment law landscape is ever-evolving. Watch a recording of our California Legal Update Webinar Series to learn about the latest changes and how they affect employers. California Legislative Update This presentation covers employment laws that have been enacted in California over the last year and proposed bills that, if passed, will affect California … Continue Reading

New Laws Enhance California’s Equal Pay Act

On September 30, 2016, California Governor Jerry Brown signed into law two bills designed to address ongoing concern of pay inequity. A.B. 1676 amends the California Fair Pay Act by prohibiting employers from relying on an employee’s prior salary to justify a disparity between the salaries of similarly situated employees.  S.B. 1063 extends the Fair … Continue Reading

Farmworkers’ “Phase-In” Overtime Bill Officially Sprouts

Much like the agricultural harvest cycles it may affect, September 12, 2016, marks the planting season for the Phase-In Overtime for Agricultural Workers Act of 2016. Assembly Bill 1066 (“AB1066”), signed into law by Governor Brown, is an aggressive “phase-in” overtime bill, which will cultivate and change the wage and hour landscape for agricultural workers … Continue Reading

Governor Brown Raises the Minimum Wage to $15.00 per Hour, Despite Strong Employer Opposition

California’s unfriendly business environment took another unprecedented step this week, with Governor Jerry Brown raising the minimum wage to $15.00 per hour by 2022.  Governor Brown signed SB 3 into law on April 4, 2016.  The new law annually increases the state minimum wage starting January 2017.  California’s minimum wage currently is $10.00 per hour.  … Continue Reading

Santa Monica, California, Joins Patchwork of Minimum Wage and Paid Sick Leave Laws

California’s City of Santa Monica’s City Council has adopted an ordinance that enacts minimum wage and paid sick leave requirements for covered employees as well as new regulations pertaining to service charges and surcharges. Ordinance Number 2509 became effective on February 25, 2016, although its provisions will not be implemented until July 1, 2016. The … Continue Reading

California Labor Commissioner’s Enforcement Powers Set to Expand Dramatically

Effective January 1, 2016, California employers face a Labor Commissioner with significantly enhanced authority to enforce judgments for unpaid wages under California’s Fair Day’s Pay Act. The new law seeks to prevent “wage theft” by authorizing the Labor Commissioner to issue stop work orders against employers (and successor employers) who have judgments against them for … Continue Reading

Waiting Time Penalties Under California Labor Code Not Wages for Federal Tax Purposes

Waiting time penalties imposed under Section 203 of the California Labor Code are not “wages” for purposes of federal income or employment taxes, according to a Chief Counsel Advice Memorandum issued by the Internal Revenue Service. Although the Memorandum is not precedential, it provides guidance regarding the IRS’s current views on the taxability of such … Continue Reading

Sacramento Minimum Wage Increases

Anyone paying attention to national politics knows increasing the minimum wage is a hot topic  being debated by employee and business groups.  While the debate rages, the Sacramento City Council decided not to wait for the feds or the state to act, and recently voted 6-3 to increase the Sacramento city minimum wage, as follows:… Continue Reading

Why You Should Take a Closer Look at California’s New Piece-Rate Legislation

Employers doing business in California have seen a barrage of class actions and representative claims for various alleged wage and hour Labor Code violations. Some cases are premised solely on “technical” wage statement violations, where the employer may not have even realized the practice was occurring or was unlawful.… Continue Reading

Plaintiff and Defendant Are “Prevailing Parties” in Same Action

In Sharif v. Mehusa, Inc., (Cal. App. 2d Dist. Oct. 14, 2015) 2015 Cal. App. LEXIS 897, plaintiff brought three claims for unpaid overtime, unpaid wages, and violation of California’s Equal Pay Act against her former employer. At trial, plaintiff only succeeded on her Equal Pay Act claim and was awarded $26,300. As the prevailing … Continue Reading

New California Law Eases Employees’ Burdens in Proving Gender-Based Pay Claims and Creates Additional Protections for Employees to Discuss Their Wages

On October 6, 2015 Governor Jerry Brown signed Senate Bill 358 (“SB 358”), a law that substantially eases California employees’ burden in proving gender-based pay claims. This law also increases the number of years that employers must retain employee records, and creates additional protections for employees who wish to discuss or disclose their wages.… Continue Reading

California Court of Appeal Affirms Expense Reimbursement Award to Misclassified Employees

Four drivers who transported cargo from the Ports of Long Beach and Los Angeles were misclassified as independent contractors and subjected to illegal paycheck deductions, a California Court of Appeal has held.  Garcia et al. v. Seacon Logix, Inc., No. B248227 (July 16, 2015) (unpublished).  This case reiterates a simple, yet important principle of employment … Continue Reading
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