In a significant victory for California employers, earlier this month the US Supreme court issued a decision in Viking River Cruises  v. Moriana, that allows California employers to compel arbitration of Private Attorney General Act (“PAGA”) based claims of an individual and obtain a dismissal of all other aggrieved PAGA employees’ claims.  The impact of the decision could potentially result in greatly diminishing an employer’s exposure for penalties under PAGA. How PAGA Claims Were Litigated Prior to the Viking River Cruises Decision Prior to Viking River Cruises, under PAGA, an individual Plaintiff could bring a PAGA claim of their own as well as on... READ MORE

This month we remind you of upcoming changes and deadlines coming at the end of this month related to California employment law and discuss a recent California decision impacting meal and rest period violation and premium pay reporting requirements. Increase in City of Los Angeles and Unincorporated County of Los Angeles Minimum Wage Requirements Effective July 1, 2022 Effective July 1, 2022, minimum wage for employees working within the City of Los Angeles will increase from $15.00 per hour to $16.04 per hour. The City of Los Angeles minimum wage rate applies to any employees who perform at least two... READ MORE

A common wage and hour issue targeted by savvy Plaintiff’s employment attorneys is whether employers correctly and accurately provide meal and rest periods to their non exempt employees.  Under California law, an employee is entitled to an hour of pay for any missed or interrupted meal or rest period that an employee is not provided each day (for a maximum limit of two hours of penalty per day) going back over four years.  Additionally, if the meal and rest period violations occur across the board to all or many employees, such violations can serve as a basis for a Private... READ MORE

Employers in California are required to provide employees with an itemized wage statement, also known as a pay stub.  In California there are very specific requirements under the applicable wage orders and labor code that set forth what every pay stub must include. Failing to issue an accurate and California compliant wage statement can result in substantial penalties. In that regard, paystub violations are a target claim for savvy Plaintiff’s attorneys’ who bring Private Attorney General Act (PAGA) claims on behalf of all employees affected, resulting in potential six figure exposure.  Violations will occur for among other reasons, whenever an... READ MORE

Frequently, clients will tell us they have a great idea that they would like to license others to operate. When we explain that they are proposing a franchise arrangement, we get the response, “I don’t want to be a franchisor; can’t I just grant a license?” What is a “franchise”? A franchise is a special kind of license. In general, all franchises include a license, but not all licenses are franchises. What’s the difference?  A franchise is an arrangement that normally includes three elements (there are exceptions in some states, but this is the rule in California and federally). We... READ MORE

In March 2022, President Biden signed into new law the Ending Forced Arbitration of Sexual Assault and Sexual Harassment Act (EFASASHA), barring the enforcement of most mandatory arbitration provisions in cases alleging sexual assault or sexual harassment. The EFASASHA will apply to all pre-dispute arbitration clauses, including those in contracts executed before the law’s enactment. The law will also invalidate pre-dispute agreements that waive an employee’s right to participate in a joint, class or collective action in court, arbitration or any other forum that relates to a sexual assault or sexual harassment dispute. Moreover, if a dispute arises about whether... READ MORE

Doing business in California, and having employees requires a keen awareness of the risks involved and how to avoid them, particularly when it comes to California’s extensive wage and hour laws.  Violations of these laws, even if unintentional, can result in substantial penalties and owed wages. However, much of this risk can be prevented by avoiding common mistakes and ensuring that your company’s wage and hour practices and policies comply with California law. The following are the most common wage and hour mistakes made by employers: Failing to Keep Accurate Time Keeping Records including Meal and Rest Periods Employers frequently... READ MORE

California has enacted a new paid Covid Sick Leave Law (Labor Code section 248.6) effective February 19, 2022 that applies to employers with 26 or more employees and provides potentially up to 80 hours of paid sick leave for qualified employees.  The leave applies to anyone at covered employers (with 26 or more employees) from January 1, 2022 through September 20, 2022.  So, workers who already missed work due to  Covid would be entitled to paid leave for the time they missed subject to the requirements set forth below.  (Employers who already voluntarily provided paid leave for Covid illness this... READ MORE

Several bills impacting employers have been going through the legislative process during these past months and two carryover bills AB1119 / AB95 considered “job killer” bills that would have expanded mandates on employers died in the Assembly fiscal committee. AB 1119 would have required employers to accommodate any employee with family responsibilities with uncapped protected leave for employees to request time off and likely exposed employers to costly litigation under the Fair Employment and Housing Act. If passed, this bill could have enabled an employee to challenge any adverse employment action as being related to the employee’s family responsibilities, rather... READ MORE

Under AB 685, when an employee tests positive for Covid, the employer must notify employees and other onsite workers who may have been exposed to COVID-19 and to report workplace outbreaks to the local health department.  Notify Employees and Potentially Exposed Workers Within one business day of notice of the potential exposure, the employer must provide written notice to employees and employers of subcontracted employees who were on the premises at the same worksite as the worker diagnosed with COVID-19 during the infectious period. Written notice can be in a manner the employer normally uses to communicate employment-related information. The... READ MORE