Tag Archives: Overtime

Calculating Overtime Value of Flat-Sum Bonus Must Be Based on Actual Non-Overtime Hours Worked, California High Court Holds

The California Supreme Court has held that, under state law, when an employee earns a flat sum bonus during a pay period, the overtime pay rate will be calculated using the actual number of non-overtime hours worked by the employee during the pay period. Alvarado v. Dart Container Corp., 2018 Cal. LEXIS 1123 (Cal. Mar. … 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

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 … Continue Reading

California Supreme Court Limits Application of Commission Overtime Exemption for Employer Subject to Wage Order 4 and 7

The California Supreme Court has narrowed application of the “commission exemption” from overtime, dealing employers a setback in Peabody v. Time Warner Cable, Inc., No. S204804 (Cal. Jul. 14, 2014). Under Wage Orders 4 and 7, sales employees who earn more than 50 percent of their wages in commission and earn at least 1.5 times … Continue Reading

Reminder to Employers: California State Minimum Wage Change is Effective July 1, 2014

Although many employers are aware of the upcoming change to the California state minimum wage, here is one last reminder. The California state minimum wage will increase to $9.00 an hour starting July 1, 2014 and up to $10.00 per hour by January 1, 2016. In July 2014, the minimum salary test for the Executive, Administrative, … Continue Reading

Court Easily Finds Sufficient Allegations of Willful FLSA Violations, Denies Dismissal Motion

We’ve seen the claim often in class action wage hour disputes over proper classification of workers: the plaintiff and those similarly situated could not have been exempt managers because the employer didn’t provide adequate staffing, and so plaintiff had to spend more of her time as a worker bee than as a manager because the … Continue Reading

Overtime Requirements in the Home

On September 26, 2013, California Gov. Jerry Brown signed a bill, A.B. 241, to give overtime pay to domestic workers such as caregivers, childcare providers, and housekeepers who work in private homes. The bill enacts California Labor Code Sections 1450-1454 and will take effect on January 1, 2014. Under the new sections, domestic employees must be … Continue Reading

Are you ready? Additional Issues if the California State Minimum Wage Changes, Part 2

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 it … Continue Reading

Don’t Forget the Salary Basis Test!

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 assumed … Continue Reading

Ninth Circuit Looks to the California Supreme Court for Clarification of the Commission Overtime Exemption

The Ninth Circuit has recently requested the California Supreme Court to address the proper method of calculating employee commission payments to determine qualification for California’s commission salesperson exemption set forth in the Industrial Welfare Commission (“IWC”) Wage Order Nos. 4 and 7. An employee generally can qualify for this exemption if: (1) they work for an employer … Continue Reading

California Court of Appeal Clarifies Personal Attendant Overtime Exemption

A good case for employers was recently issued with respect to the Personal Attendant overtime exemption. On May 14, 2012, the California Court of Appeal, Fourth Appellate District held that an individual who is exempt from overtime under the Personal Attendant overtime exemption with respect to Wage Order 15 is not disqualified from the exemption … Continue Reading

California Employers Receive a Welcome Victory Regarding Commission Plans and the Limited Commission Exemption From Overtime

On January 24, 2012, California employers received a welcome victory regarding commission plans and the commission overtime exemption under Wage Orders 4 and 7. In Muldrow v. Surrex Solutions Corp., (CA4/1 Case No. D057955 1/24/12), the Fourth Appellate District of the Court of Appeal found that employment recruiters were eligible for the California commission exemption … Continue Reading

California’s Long Arm of the Law: Ninth Circuit Follows California Supreme Court to Decide Oracle Case Against Employers Headquartered in California

         California-based employers who send workers from other states into California must pay the employees pursuant to California law, not the law of the state where the employees reside, according to the Ninth Circuit Court of Appeals in Sullivan v. Oracle Corp. 06-56649 (9th Cir. Dec. 13, 2011).  In Sullivan, Oracle hired “Instructors” to train … Continue Reading

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. App. 1st Dist. … Continue Reading

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 plaintiff received a … Continue Reading

California’s Long Arm of the Law: California Supreme Court Decides Oracle Case Against Employers Headquartered in California

  California based employers who send workers from other states into California must pay  the employees pursuant to California law, not the law of the state where those employees reside, according to the California Supreme Court ruling in Sullivan v. Oracle Corp. (SC  S170577 6/30/11).  The Supreme Court’s decision is a mixed bag of chocolates … Continue Reading

The Ninth Circuit Has Revitalized The California Learned Professional Overtime Exemption and Remanded To A Jury Key Issues Under The Administrative Exemption

In 2009, companies who classified certain unlicensed accountants, engineers and other professions as exempt from overtime under the California Learned Professional Exemption were dealt a broadside by a federal District Court when it held that unlicensed accountants were categorically ineligible for the Learned Professional Exemption. The decision lead to numerous employers revaluating the Learned Professional … Continue Reading