Under the Labor Code, each year the State of California must determine and certify whether an adjustment for inflation is applied to the state’s minimum wage. In 2022, when the rate of inflation exceeded 7 percent, the state minimum wage was increased to $15.50. This year, California has decided that the minimum wage increase
Three years ago, California voters approved Proposition 22, the “Protect App-Based Drivers and Services Act,” which allowed app-based rideshare and delivery companies to hire drivers as independent contractors if certain conditions were met. This week the California Court of Appeal mostly upheld the Proposition as constitutional.
Proposition 22 went into effect in 2021 and…
While the State of California and several cities across the state increased their minimum wages on January 1, 2023, some cities—including the City of Los Angeles—will increase their minimum wage in July 2023.
On February 1, 2023, the City of Los Angeles Office of Wage Standards announced the coming increase for July 1, 2023.
Veterans Day is a federal holiday in the United States for honoring military veterans, who are people who have served in the United States Armed Forces. On this special day, it is also a time to remember workplace protections for veterans, including those currently serving in the military.
California’s Fair Employment and Housing Act (FEHA)…
While some of the 2020 election is still undecided, California voters were fairly definitive in their support of Proposition 22, which will now allow app-based rideshare and delivery companies to hire drivers as independent contractors if various conditions are met.
A key part of Prop 22 provides workers with minimum compensation levels, health insurance…
On September 30, 2020, the Governor signed Assembly Bill 323 (“AB 323”), which is intended to support local journalism.
Part of the new law focuses on California’s official advertising, requiring the Department of General Services publish by July 1 each year information relating to payments of placement marketing and outreach advertising material by each state…
On September 28, 2020, Governor Newsom signed Senate Bill 1384, which (1) expands the California Labor Commissioner’s representation to arbitrations for claimants who cannot afford counsel, (2) requires employers to serve petitions to compel arbitration on the Labor Commissioner, and (3) allows the Labor Commissioner to represent claimants in proceedings to determine whether arbitration…
On January 7, 2016, Governor Brown’s office submitted a 22-page Budget Change Proposal for 2016-2017 (http://web1a.esd.dof.ca.gov/Documents/bcp/1617/FY1617_ORG7350_BCP474.pdf) in an effort to “stabilize and improve the handling of Private Attorneys General Act cases.”
Enacted in 2003, the Private Attorneys General Act (PAGA) enables private parties to recover penalties for certain Labor Code violations that could previously only be pursued by the Labor Commissioner or other divisions within California’s Department of Industrial Relations (DIR). Following a 2004 amendment, PAGA requires employees or their representatives to initiate a case by first sending written notice to the employer and the Labor and Workforce Development Agency (LWDA) identifying the alleged violations and setting forth specific supporting facts.
Continue Reading State Budget Proposal Seeks to Reduce PAGA Litigation Through Increased State Oversight
The recent death of conservative Justice Antonin Scalia will give public sector unions a short respite in Friedrichs v. California Teachers Association et al., a case that was likely to limit public sector unions’ ability to require mandatory fees from public workers. Following last month’s oral arguments before the High Court, many legal analysts expected a 5-4 opinion in Friedrichs, striking down mandatory union fees for public workers. Now, it is possible that the lower court ruling upholding the fees will remain in place.
Continue Reading Public Sector Union Fees Continue to Hang in the Balance With Scalia’s Passing
Denying an employer’s motion to compel individual arbitration of a wage and hour class action, a California federal court ruled that the employer’s dispute resolution program violated its employees’ right to engage in concerted action under the National Labor Relations Act (“NLRA”). Totten v. Kellogg Brown & Root, LLC. Notably, this ruling departs from the established trend of federal courts declining to follow the precedent set in In re D.R. Horton, Inc. (“Horton I”) and has significant implications for employers contemplating whether to remove a class action involving the enforcement of arbitration agreements to federal court.
Kellogg Brown & Root LLC’s (“KBR”) hired David Totten (“Totten”) in 2012. During his new hire orientation, Totten signed an agreement to participate in KBR’s Dispute Resolution Program (“DRP”) as a condition of his employment. The DRP required employees to arbitrate any claims against KBR that related to, or arose out of, their employment. The DRP also prohibited “KBR, employees and applicants from pursuing claims on a class, collective, or representative basis…” KBR terminated Totten’s employment in June 2014. Approximately one month later, Totten filed a class action against KBR for alleged wage and hour violations and unfair business practices.
Continue Reading Arbitration Agreements