The International Brotherhood of Teamsters, Local 2785 has filed a petition for review to the Ninth Circuit Court of Appeals on the Federal Motor Carrier Safety Administration’s (FMCSA) determination that California’s meal and rest break rules are preempted as applied to drivers of commercial motor vehicles (CMVs) subject to the FMCSA’s hours-of-service (HOS) regulations. This

In November 2017, the California Labor Commissioner’s office, Division of Labor Standards Enforcement (“DLSE”), published updated guidance on employer provided paid 10-minute rest breaks.  Specifically, the DLSE maintains that employees must be relieved of all duty during rest breaks, and now has taken the position that employees must be permitted to travel off-site during their

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 Although the Memorandum is not precedential, it provides guidance regarding the IRS’s current views on the taxability of such payments. The California Department of Industrial Relations (DIR) has long taken the position that waiting time penalties are not wages.
Continue Reading Waiting Time Penalties Under California Labor Code Not Wages for Federal Tax Purposes

California employers might receive much-needed clarification on whether and to what extent employees can remain “on call” during rest breaks.  On April 29, 2015, the California Supreme Court granted review of Augustus v. ABM Sec. Services, Inc., Nos. B243788 & B247392 (Cal. Ct. App. Jan. 29, 2015).

Earlier this year, the California Court of Appeal ruled that security guards were provided lawful rest breaks even though the company required the guards to remain “on call” during the rest breaks.  In so holding, the Court of Appeal ruled that remaining on call during rest breaks does not “constitute performing work” under Section 226.7 of the Labor Code and the applicable wage order.  For additional details about the underlying decision, please see our prior blog post.
Continue Reading California Supreme Court to Review On-Call Rest Breaks

In a recent turn of events, the California Court of Appeal ruled in Gerard v. Orange Coast Memorial Medical Center (Feb. 10, 2015) that healthcare workers cannot waive their second meal period when working shifts in excess of 12-hours despite the Industrial Welfare Commission’s (“IWC”) order to the contrary. The court found that the IWC lacked authority to circumvent the California Labor Code and, therefore, partially invalidated Wage Order No. 5-2001, which governs the healthcare industry.
Continue Reading Wage Order No. 5-2001 Partially Invalidated: Healthcare Workers Cannot Waive Their Second Meal Period When Working More Than 12 Hours

Reversing a trial court’s awarding of a $90 million judgment in a class action case for alleged rest period violations under California law, the California Court of Appeal has ruled that a security company had provided its security guards with proper rest periods, even though they were required to remain “on call” during those breaks.

On October 28, 2014, a California Court of Appeal held that the Federal Aviation Administration Authorization Act of 1994 (“FAAAA”) does not preempt California’s meal and rest break requirements as applied to motor carriers.  [Godfrey v. Oakland Port Services Corp. (Cal. App. Ct. Oct. 28, 2014) Case No. A139274.]

In Godfrey, the plaintiffs