With the close of the 2023 California legislative session, it is time to take a look at a few of the most important new and updated employment laws to ensure your business is prepared and compliant for the new year. Expanded Leave Protections SB 616 – Increase in Paid Sick Days Accrual and Use[1] Under existing law, employers are required to provide a minimum of 3 days (or twenty-four hours) of paid sick leave each year. Additionally, employees are entitled to accrue 6 days (or forty-eight hours) of paid sick leave which may be carried over from one year to […]

  August 2023   Dynamix Operations W. v. Superior Court and the subsequent passage of AB 5 represent seismic shifts in independent contractor rules in California.  We have previously provided details of these changes and their impacts. The Recent Evolution of Independent Contractor Laws; California Assembly Bill 5: Drastic Changes to the Healthcare Industry Are Certain and Immediate; California Motor Carriers Are Subject to AB-5; Ten Common Employment Law Violations; New California Employment Laws for 2022; California Employment Law Update 2021. But how do these laws impact the construction industry, and specifically the relationship between the prime contractor and subcontractors?  […]

  August 2023 On June 20, the United States Supreme Court denied a petition by Mobilize the Message LLC (“Mobilize”) challenging California’s test for classifying workers as independent contractors.  We have previously addressed how California made it significantly harder to classify workers as independent contractors when it passed Assembly Bill 5 (“AB 5”).  The Recent Evolution of Independent Contractor Laws; California Assembly Bill 5: Drastic Changes to the Healthcare Industry Are Certain and Immediate; California Motor Carriers Are Subject to AB-5; Ten Common Employment Law Violations; New California Employment Laws for 2022; California Employment Law Update 2021. Mobilize contracts with […]

April 2023 Wage theft is undoubtedly a major issue in the United States.  According to a study by the Economic Policy Institute, wage theft could amount to $50 billion dollars per year owed to unpaid workers. To combat wage theft, California has passed onerous regulations and severe penalties for non-compliance.  These rules are often so burdensome that it can be difficult for even the most well-intentioned employers to comply with all requirements. The ramifications of non-compliance can be devastating to businesses as they may face crippling class-action lawsuits and Private Attorneys General Act (“PAGA”) claims. There are, however, steps that […]

  January 2023 It is common practice for an employer to round employer timesheets, usually in 5, 10, or 15-minute increments, to help simplify payroll.  In 2012, the California Supreme Court approved the use of rounding in See’s Candy Shops, Inv. v. Superior Court.  The Court held that rounding was appropriate so longer as the process was neutrally applied.  For example, if an employer rounds time in 10-minute increments, the employer can round down for any time less than five minutes and round up for any time over five minutes.  In theory, therefore, the employer and employee should equally benefit […]

October 2022 As is the case each year, the California legislature passed a flurry of new employment laws at the end of the legislative session, many of which have been signed into law by Governor Newsom. Employers should be aware of these new laws, determine if they apply to their businesses, and take necessary steps to comply, including updates to their employee handbooks. Leaves of Absence Last year, California amended the California Family Rights Act (“CFRA”) to make it apply to employers with five or more employees (it previously applied to employers with 50 or more employees).  This year, the […]

  August 2022   California notoriously has some of the most stringent and complex employment laws in the nation. As such, even well-intentioned employers can easily find themselves running afoul of California’s rules and regulations, oftentimes at a significant cost. The following is a list of some of the most common mistakes employers make regarding California employment laws: 1. Overtime Under federal law, non-exempt employees are entitled to overtime for any hours worked in excess of 40 hours in a week. California, however, also requires overtime for any hours worked in excess of 8 hours in a day. California also […]

  August 2022 Many employers elect to pay salespersons commission-based wages. Employers can benefit by this arrangement as the salespeople are paid based on the amount and quality of their work. The salespeople also have the opportunity to earn higher wages for their hard work. Employers, however, need to ensure they are following the correct legal procedures for commission payments. Otherwise, they run the risk of owning considerable wages, fees, and penalties. A. Commissions Defined In 1998, the California Courts handed down the decision of Keyes Motors, Inc. v. DLSE. This case defined commissions as those payments arising from the […]

  June 2022 Under California Labor Code § 226.7, and the Industrial Welfare Commission (“IWC”) wage orders, employers must provide employees with a premium payment of one-hours’ worth of wages for every non-compliant meal and rest breaks.  Non-compliant meal breaks include failing to provide employees with at least 30 minutes, failing to completely relieve employees of job duties during the meal break, and failing to provide employees with the opportunity to take a meal break within the first five-hours of employment.  Non-compliant rest breaks include failing to provide two 10-minute paid breaks during a regular eight-hour workday and failing to […]

On March 3, 2022, President Biden signed into law the Ending Forced Arbitration of Sexual Assault and Sexual Harassment Act of 2021, also referred to as House Resolution (“H.R.”) 4445 (the “Act”). The overall purpose of the Act is to prohibit mandatory enforcement of arbitration agreements sexual assault and sexual harassment lawsuits. Instead, the Act gives the employee the option of proceeding with arbitration, if an arbitration agreement exists, or proceeding with claims in court, by amending the Federal Arbitration Act. The impact of the Act is that cases based on sexual assault or sexual harassment occurring or on or after March […]