While reversing summary judgment in favor of a holding company, in Castaneda v. The Ensign Group B249119 (Cal. Ct. App. Sep. 15, 2014), the California Court of Appeal held that a “corporation with no employees [that] exercises some control over [a] corporation with employees, [] may be the employer of the employees of the corporation it owns.” In doing so, the Court found that there were triable issues of material fact whether the holding company that alleged it had no employees, The Ensign Group, Inc., was the plaintiff’s employer.
Continue Reading California Court of Appeal Holds That A Holding Company With No Employees May Be Vicariously Liable For Alleged Wage and Hour Violations of a Subsidiary

Last week, California’s legislature submitted a bill for the Governor’s approval, Assembly Bill 2074, which would amend Labor Code section 1194.2 dealing with the provision of liquidated damages arising out of an employer’s failure to pay minimum wage.

Employees who believe their employer did not pay them all of their wages may bring a civil lawsuit seeking several forms of damages, including liquidated damages for failing to pay minimum wage.  Liquidated damages under Labor Code section 1194.2(a) are comprised of “an amount equal to the wages unlawfully unpaid and interest thereon” (i.e., on top of the unpaid wages and penalties, employees may obtain another set of damages equivalent to the unpaid wages plus interest).Continue Reading Proposed Amendment to Labor Code: Three-Year Statute of Limitations on Liquidated Damages Claim for Failure to Pay Minimum Wage

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J.B. Hunt Transportation, like many trucking companies, pays its drivers “a certain amount for every mile they drive, in addition to lump sums for every delivery they make.” Consequently, “drivers are not directly compensated for certain job-related activities, including loading and unloading freight, or waiting for a customer.” Relying on Armenta v. Osmose Inc.,

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So you’re a startup. You’ve decided to take your world-changing idea and move it out of your dorm room/garage/favorite-table-at-Starbucks and start a legitimate business. So what next?

If you plan on

California Governor Brown has announced he will sign AB 10 tomorrow, in LA and Oakland, which will increase the CA state minimum wage effective July 1, 2014. See Brown’s statement: http://gov.ca.gov/news.php?id=18221. Since many employers are engaged in budgeting for 2014 and beyond, this new development should be factored into such plans.

If the California state minimum wage changes, are you ready?  Employers may need to review the salaries of certain exempt employees to ensure compliance with the minimum salary basis test under the Executive, Administrative, and Professional overtime exemptions. On September 16, 2013, AB 10, the California state minimum wage increase legislation,  was enrolled meaning

Most litigation over whether employees are classified properly as exempt from overtime turns on whether employees spend the majority of their work time performing exempt duties. However, employers should not forget the salary basis requirement. In Negri v. Koning & Associates, No. H037804 (Cal. Ct. App. May 16, 2013), the California Court of Appeal