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
Blowing the Whistle…Paying the Piper
Whistleblowing in the workplace recently got a lot more expensive for California employers. A recent California Court of Appeals decision, Todd Hawkins et al. v. City of Los Angeles, has reminded employers — again — about how costly a whistleblower case can be. Blowing the Whistle… Anyone following the national news is familiar with the general… 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
California Expands Employers’ Lactation Accommodation Requirements
On October 10, 2019, Governor Gavin Newsom signed SB 142 into law, which expands California employers’ obligations to accommodate employees who need to express breastmilk during the workday, most notably by adding a number of new requirements for the lactation space itself. The bill also establishes significant penalties for employers that fail to comply with… 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
AB 9 Now Gives Employees 3 Years to Bring Harassment and Discrimination Claims
On October 10, 2019, Governor Gavin Newsom signed AB 9 into law. AB 9 extends the deadline for employees to file a charge of employment discrimination, harassment, or retaliation with the Department of Fair Employment and Housing (“DFEH”) from 1 year to 3 years. The new deadline is 3x longer than the current state requirement… Read More
EPLI Insurance May Cover Some Wage-and-Hour Claims
Employment practices liability insurance (“EPLI”) policies often contain explicit language that excludes from coverage or defense claims that are based on any federal or state wage-and-hour laws. Recently, the California Fourth Circuit Court of Appeal gave employers a glimmer of hope – and an incentive to push back if a carrier initially rejects either coverage… Read More
California Consumer Privacy Act Brings New Employer Obligations
On September 13, 2019, the California Senate and Assembly unanimously passed AB 25, amending the California Consumer Privacy Act (“CCPA”). Governor Newsom signed AB 25 into law on October 11, 2019. This amendment places serious obligations on certain employers to protect the private data of employees, and grants employees the right to statutory damages for… Read More
New Employer Notification Obligations for FSA Accounts
Governor Gavin Newsom recently signed AB 1554 into law, which requires California employers who offer their employees Flexible Spending Accounts (“FSAs”) to provide their workers with two separate notices reminding them that they must use the funds in their FSAs before the end of the plan year or the funds will expire. Currently, federal law… Read More
