San Francisco’s Health Care Security Ordinance has been amended to require additional obligations for covered employers with workers in the City and County of San Francisco. The amendments will take effect January 1, 2012. The Ordinance requires many employers to spend a specified minimum amount toward certain health care expenses for their employees working in
Legal Articles
New California Employment Laws for 2012
A number of new employment laws signed by California Governor Jerry Brown have made significant changes in California labor and employment law. We suggest employers review their human resources policies and employee handbooks. The new laws are effective January 1, 2012, unless otherwise indicated. We highlight what we believe to be the most significant in California…
California AB 1396 Requires Employers to Reduce Commission Agreements to Writing
On October 7, 2011, Governor Brown signed AB 1396. The new law requires all employers doing business in California to draft written contracts for any agreements with employees that involve commissions as a method of payment for services. Commission wages are defined as compensation paid to any person for services rendered in the sale of an…
New California Law Penalizes Employers Who Misclassify Employees as Independent Contractors
In the latest effort to crack down on the misclassification of employees as independent contractors, California Governor Jerry Brown recently signed SB 459, a bill prohibiting any person or employer from “willfully” misclassifying workers as independent contractors. The bill also prohibits employers from charging a misclassified worker a fee or deducting from his pay for any…
California Changes the Rules For Employers to Obtain and Use Credit Reports
California has changed the rules for when an employer may obtain and use credit reports. Effective January 1, 2012, California will impose significant restrictions on an employer’s ability to obtain a credit report for employment purposes.
California Assembly Bill 22, signed by Governor Jerry Brown, generally permits employers who are seeking to fill only…
Supreme Court to Hear Brinker Restaurant on Nov. 8 – Uncertainty on California Meal and Rest Breaks May Be Resolved by January 2012
California’s Supreme Court will issue its long-awaited decision in its Brinker Restaurant Corporation meal and rest period case within the next four months. The Court will hold oral arguments in the case on November 8, according to an announcement the Court issued on October 4. The Court granted review in the case in October 2008.…
California Appeals Court Rules Law School Graduate Who Was Not Yet Admitted To Bar Was Exempt “Learned Professional”
California courts continue to build on the Ninth Circuit’s recent decision regarding the California Learned Professional Exemption. A California appellate court found a law clerk as exempt from state and federal overtime provisions who had not passed the California Bar Exam but graduated from law school. Zelasko-Barrett v. Brayton-Purcell, LLP, 2011 Cal. App. LEXIS 1080 (Cal.
A California Appellate Court Creates a New Test for Sabbaticals
For the first time, a California appellate court has addressed when paid leave offered as a sabbatical is considered “paid vacation.” The distinction is important because California has long held that separating employees must be paid for any accrued “paid vacation," whereas leave granted as part of a true sabbatical may be forfeited if not used…
New Case Provides More Flexibility for Employers Crafting Commission Plans
In a recent pro-employer decision, the California Court of Appeals held that California’s exemption from overtime requirements for commissioned employees applied to a car sales consultant and the decision provided flexibility for employers when crafting commission plans. Areso v. Carmax, Inc., 195 Cal. App. 4th 996 (Cal. App. 2d Dist. 2011). In Areso, the …
The California Fair Employment & Housing Commission’s Wake-Up Call to Employers
The following is a reminder about a wake-up call to employers. The California Fair Employment & Housing Commission (“FEHC”) issued a decision which held that an employer can be liable for failing to take all reasonable steps to prevent discrimination and harassment even if there is no underlying discrimination or harassment. Department of Fair …