The U.S. Court of Appeals for the Ninth Circuit reviewed a challenge to California’s “ABC Test,” also referred to as Assembly Bill (AB) 5, which is California’s test for whether a worker can be classified as an independent contractor. In Mobilize the Message, LLC v. Bonta, the plaintiffs appealed the district court’s denial of
Eric J. Gitig
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California Legislature Gives the FAST Recovery Act a Second Chance
By Eric J. Gitig & Swaja Khanna on
Posted in California
January 31st was the last day for the California legislature to approve bills that had been initially introduced in 2021 before they are shelved for good. The FAST Recovery Act (Assembly Bill (AB 257) was such a bill.
AB 257 would create an 11 member Fast Food Sector Council appointed by the…
Meal and Rest Break Premiums Payable at Base Rate, Not Regular Rate of Pay
By Eric J. Gitig & Hazel U. Poei on
Posted in Wage and Hour
A California state appellate court has ruled that the correct rate for paying meal and rest period premiums is one hour of pay at an employee’s base hourly rate, not the regular rate of pay used for calculating overtime wages. This is the first published California case to make this distinction.
Pursuant to § 226.7…
Payroll Company Not Liable Under Third Party Beneficiary Doctrine
By Eric J. Gitig & Hazel U. Poei on
Posted in Wage and Hour
On February 7, 2019, the California Supreme Court determined that an employee cannot sue a payroll company for breach of contract under the third party beneficiary doctrine, and that it is inappropriate to impose a tort duty of care upon a payroll company with regards to the obligations owed to an employee under the applicable…