Recent Article Reminds Employers of Risks of Wage and Hour Litigation
September 26, 2007 - 3:09 PM
MSNBC recently published an article that reports on theonslaught of wage and hour litigation being commenced against employers throughout the nation (click here to review the article). This article should serve as a reminder to all employers of the potential risks associated with a failure to comply with wage and hour laws (including, but not...
SB 622 Threatens More Penalties for Employee’s Misclassified as Independent Contractors.
September 25, 2007 - 12:00 AM
A bill sitting on Governor Schwarzenegger's desk would create even greater penalties for employees misclassified as independent contractors or exempt employees.SB 622, which was sent to Gov. Schwarzenegger's desk on September 20, 2007, would assess large civil penalties against employers who: (1) "willfully" misclassify employees as independent contractors; (2) "willfully" pay a non-exempt employee at a fixed salary;or (3)...
Update Regarding Assembly Bill 1711
September 18, 2007 - 1:08 PM
The California Assembly adjourned the 2007 session without voting on Assembly Bill 1711, a bill that proposes sweeping changes to the Labor Code provisions regulatingmeal and rest break requirements imposed on California employers. The Labor Code amendments were proposed by Assembly Member Lloyd Levine on the last day members were permitted to make amendments, and we anticipate...
Pending Bill Could Make Major Changes to Meal and Rest Break Flexibility
September 12, 2007 - 1:01 PM
Last week, California Assembly Member Lloyd Levine proposed broad changes to sections of the California Labor Code regulating, among other rules, the meal and rest break requirements imposed on the state's employers as part of AB 1711. The bill's most important provisions are summarized below.
Meal Break Timing and On Duty Meal Periods
The proposed legislation...
California Supreme Court Limits Availability of Class Action Waivers
September 4, 2007 - 11:26 AM
On August 30, 2007 the California Supreme Court issued its decision in Gentry v. Superior Court of Los Angeles, in which it significantly reduced the availability of class-action waivers in arbitration agreements for overtime wage litigation. In Gentry, a former customer service manager of Circuit City filed a class action lawsuit against Circuit City, his employer, for...
Disabled Employees Must Now Show Ability to Perform Essential Functions of the Job
August 28, 2007 - 3:51 PM
In a recent 4-3 decision, the California Supreme Court concluded that employees who allege disability discrimination based on California's Fair Employment and Housing Act ("FEHA") must prove that they can perform their essential job functions, with or without accommodation. With this ruling, the Court resolved a split in authority, and aligned FEHA requirements with those...
Employers’ Profit Sharing Plans Declared Lawful Under California Labor Law
August 28, 2007 - 12:00 AM
Employers generally recognize that profit-sharing plans can be important tools for motivating employees and improving their morale. Such plans help focus employees on their employers' bottom line and foster a common goal among employers and their employees. In California, however, such plans were also possibly unlawful until the California Supreme Court issued its recent decision...
Appellate Court Emphasizes Narrow Nature of Administrative Exemption
August 21, 2007 - 12:30 PM
On August 16, 2007, the California Court of Appeal issued Harris v. Superior Court, another in a series of California cases emphasizing the narrow scope of the administrative exemption under California law. In Harris, a class of insurance claims adjusters alleged that they were improperly classified as exempt from California's overtime compensation requirements.The defendant insurance companies...
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