Effective January 1, 2020, and as a result of the passage of Senate Bill (“SB”) 78, California now has a statewide healthcare mandate that is similar to the federal Affordable Care Act (“ACA”). Like the federal ACA, California’s new mandate requires most California residents to purchase and maintain “minimum essential coverage” for healthcare. Also like… Read More
Court Blocks AB 51 From Taking Effect on January 1, 2020
AB 51 was signed by Governor Newsom back in October 2019. AB 51 generally prohibited employers from requiring employees, as a condition of employment, to agree to arbitrate any future Labor Code claims and/or Fair Employment and Housing Act (“FEHA”) claims. AB 51 also made it illegal for employers to use an “opt out” provision… Read More
California Supreme Court Gives Employers a PAGA Victory
In a rare “win” for California employers, the California Supreme Court recently ruled in ZB, N.A. v. Superior Court that the “underpaid wages” authorized by Labor Code §558 are not recoverable in a PAGA action. California’s Private Attorneys General Act (PAGA) As readers of this blog know well, PAGA permits an “aggrieved employee” to bring an… Read More
Use “No Rehire” Provisions in Separation Agreements? Not Anymore…
When an employee separates from a company – whether voluntarily or involuntarily – employers generally don’t want that employee to apply for work again, or to have any chance of dealing with a subsequent lawsuit or claim for “failure to hire.” When paying severance or separation pay, or when settling with an employee, employers want… Read More
Missed Meal/Rest Periods Don’t Trigger Waiting Time Penalties
The California Court of Appeals recently ruled in Naranjo v. Spectrum Security Services that an employer’s failure to pay meal or rest period premium pay for an employee who is denied a meal period does not trigger derivative (a) waiting time penalties under Labor Code §203, or (b) pay stub violation penalties under Labor Code… Read More
McDonald’s Corp. is Not a Joint Employer of Restaurant Employees
On October 1, 2019, the federal Ninth Circuit Court of Appeals ruled in Salazar v. McDonalds Corp. that McDonald’s was not a “joint employer” of 1,400 employees who worked at various Bay Area McDonald’s restaurants owned and operated by the Haynes Family Limited Partnership (“Haynes”). As a result, only Haynes – and not McDonald’s Corp…. Read More
Governor Newsom Signs AB 5 and Codifies Dynamex’s “ABC Test” for Independent Contractors
On September 18, 2019, Governor Newsom signed AB 5 into law and, in the process, fundamentally changed the California economy by making it even harder for a business to qualify a worker as an independent contractor. The Dynamex Decision As readers of this blog know, in May 2018 the California Supreme Court, in its landmark… Read More
Employers Increasingly Using Anti-SLAPP Motions in Retaliation Cases
California’s anti-SLAPP statute allows a defendant to bring a special motion to strike any cause of action in a plaintiff’s lawsuit that arises from “any act of that person in furtherance of the person’s right of petition or free speech under the United States Constitution or the California Constitution in connection with a public issue.”… Read More
California Bans Hairstyle Discrimination
On July 3, 2019, California Governor Gavin Newsom signed SB 188 — also known as the CROWN Act — and made California the first state in the country to outlaw discrimination based on “natural hair,” including afros, braids, twists, and locks. CROWN stands for Creating a Respectful and Open Workplace for Natural hair. According to… Read More
Clever Contract Language Cannot Defeat Labor Code 218.5’s Fee-Shifting Effect
Under existing California law, an employee who prevails on his/her claims against an employer for non-payment of wages is entitled to recover his/her attorneys’ fees in addition to the unpaid wages owed. But the same is not true for an employer who prevails. Under existing California law, an employer is not entitled to recover its… Read More
