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
Posts Categorized In: Compensation and Benefits
Attracting and Keeping Millennial Employees
The tech boom seems to have brought about a major shift in what employees and candidates expect from their (prospective) employers. According to a February 2019 CNBC article, this is especially true amongst millennials. On one hand, employers—particularly those within the tech realm—are offering an increasing number of “work perks,” while, on the other hand,… Read More
Heads Up — July 1 Minimum Wage Increases
If you do business in any of the cities below, be sure that as of July 1, 2019, you began paying any minimum wage employees at the current increased rates. If you use a payroll service, they likely notified you and took care of it. But if you handle your own payroll in-house, make sure… Read More
A New Approach to Employee Benefits?
Recruiting and retaining talent is a challenge for every employer, especially in the red-hot economy here in the Bay Area. That’s why many employers are taking a fresh look at their employee benefits and asking, “Are these benefits really adding value?” A recent article in Forbes explains how “forward thinking” employers are embracing a new theory of… Read More
Incentive Compensation Systems Negatively Impact Employee Mental Health?
In a first-of-its-kind academic study that looked at both employee compensation and medical records, researchers at Washington University found that employee health and wellness declines as the employer shifts compensation towards bonuses and other incentive and performance-based compensation systems. In particular, the study showed that, as an employer moves towards a bonus-focused, pay-for-performance model of… Read More
Employee’s “Imprecise” Memory is Sufficient if Employer Fails to Keep Records
In Furry v. East Bay Publishing, the California Court of Appeal held that an employee’s “imprecise” memory is sufficient evidence to support his claim for wages and overtime owed when the employer fails to keep accurate records of the employee’s work hours. The employer in Furry did not keep track of the hours its employees worked…. Read More
Employers Beware: Call-In Scheduling Policies Trigger Reporting Time Pay
The California Court of Appeal recently ruled in Ward v. Tilly’s Inc. that employers who utilize “on call” scheduling have to pay reporting time pay to their employees. This decision is sending shockwaves through California’s restaurant and retail industries because it will significantly increase payroll costs for those employers — and all others who require… Read More
2019 Brings New Laws and Obligations for California Employers
Last year was a busy legislative year in California. The #MeToo and #TimesUp movements in particular spawned a host of new employment laws that took effect on January 1st. If you haven’t done so already, you should review your employee handbook and personnel policies to make sure that you are in compliance with these new laws. SB… Read More
CA Supreme Court Rejects the “De Minimis” Doctrine — Employers Must Now Pay for Every Minute Worked by an Employee
California has some of the strictest and most complicated wage and hour laws in the nation. And guess what? They’re even stricter and more complicated now after the California Supreme Court rejected the “de minimis” defense for employers in wage and hour disputes in California. What’s the “de minimis” defense anyway? Beginning in 1961, federal… Read More
CA Supreme Court — Bonuses Impact “Rate of Pay” and Thus Overtime Calculations
California already has one of the most generous and employee-friendly overtime laws in the country. Employees in California earn overtime anytime they work over 8 hours in a day OR 40 hours in a week. Overtime is paid at 1.5 times the employee’s regular “rate of pay.” Calculating an Employee’s Regular Rate of Pay But,… Read More
