California law prohibits “use it or lose it” vacation policies and, under Section 227.3 of the California Labor Code, requires all accrued vacation to be paid on termination of employment, “unless otherwise provided by a collective bargaining agreement.” Examining the meaning of the collective bargaining exception for the first time, the California Court of Appeal
Labor Code
Handbook Policy Rescues Binding Arbitration Agreement
While employees continue to challenge binding arbitration agreements with gusto, California courts have shown a consistent willingness to enforce agreements where fundamental fairness exists. In Serpa v. California Surety Investigations, Inc., No. B237363 (Cal. Ct. App. Apr. 19, 2013), a California Court of Appeal reversed a trial court order denying the employer’s motion to…
Attorneys in Same Firm Cannot Act as Public Entity’s Advocate and Advisor in a Single Matter
The California Court of Appeal has ruled that public agencies are prohibited from using partners in the same law firm as an advocate in a contested matter and as an advisor to the decision maker in the same matter, even if the law firm has established an ethical wall between the partners. Sabey v. City…
When Close isn’t Close Enough – Appeals Court Rejects ‘Me Too’ Evidence in Discrimination Case
Employees often attempt to prove discrimination by offering evidence that other, similar employees were subject to the same treatment, often referred to as “me too” evidence. The California Court of Appeal rejected an employee’s attempt to use “me too” evidence when the employee sought to introduce evidence showing how employees outside his protected class were…
Court Rules Common Issues Didn’t Dominate in Proposed Class
Class certification is unwarranted where auto center managers and assistant managers alleged they were improperly classified as exempt and denied overtime and meal and rest breaks in violation of the California Labor Code, the California Court of Appeal has ruled in Dailey v. Sears, Roebuck and Co.Statistical Sampling Could Not Establish Liability in Wage-Hour …
California Employers Receive a Welcome Victory Regarding Commission Plans and the Limited Commission Exemption From Overtime
On January 24, 2012, California employers received a welcome victory regarding commission plans and the commission overtime exemption under Wage Orders 4 and 7. In Muldrow v. Surrex Solutions Corp., (CA4/1 Case No. D057955 1/24/12), the Fourth Appellate District of the Court of Appeal found that employment recruiters were eligible for the California commission…
Explicit Mutual Wage Agreement for Straight Time and Overtime Upheld
The California Court of Appeals has held that a California employer did not owe overtime to an employee because it had entered into an explicit mutual wage agreement that provided for base compensation and overtime in one lump sum. Arechiga v. Dolores Press, Inc., No. B218171 (Cal. Ct. App. Feb. 7, 2011). Carlos Arechiga…
Julie Su has been appointed Chief of the Division of Labor Standards and Enforcement
Governor Brown announced that Julie Su has been appointed as head of the California Division of Labor Standards Enforcement.
Here is the text of the announcement from the Governor’s website: “Julie Su, 41, of Cerritos, has been appointed Chief of the Division of Labor Standards and Enforcement. Su has worked at the Asian Pacific Legal Center…
Governor Vetoes Bill Establishing “Mother-Friendly” Workplace Designation
Citing the administrative burden placed on the State Labor Commissioner, Governor Schwarzenegger has announced his veto of Assembly Bill 2468. This bill would have permitted an employer to use the designation “Mother-Friendly Worksite” in its promotional materials, if it submitted its workplace breast-feeding policy to the Labor Commissioner and the Labor Commissioner determined the employer’s…
Can I Fire My Employee Because He Has Been Arrested?
Inquires from a number of companies and recent headlines about arrests of company executives, celebrities and their companions and the resulting fall out, including job loss, raises an issue that many California employers may not be aware of. The state Labor Code prohibits employers from taking adverse action against applicants and employees for an arrest…