As most employers are aware, California law requires employers to furnish employees with accurate and itemized wage statements that contain numerous required components. This requirement is enumerated in Labor Code section 226. Further, under the Labor Code, an employee who suffers injury due to an employer’s “knowing and intentional failure” to comply with wage statement requirements is entitled to penalties.

Continue Reading California Supreme Court Permits Good Faith Belief Defense on Wage Statement Violations

The U.S. Department of Labor (DOL) issued a final rule on April 23, 2024, increasing the minimum salary and compensation thresholds for certain overtime exemptions (the Final Rule) under the Fair Labor Standards Act (FLSA). The Final Rule has a stated effective date of July 1, 2024. The FLSA mandates that employers pay nonexempt employees one-and-a-half times their regular rate for hours worked beyond 40 in a week. However, the law exempts certain employees from receiving overtime.

Read the full Update here.

The deadline to comply with California pay reporting requirements is fast approaching. As reported last year, SB 1162 (codified in section 12999 of the California Government Code) requires private employers having 100 or more total employees to submit an annual report detailing pay, demographic, and other workforce data to the California Civil Rights Department (CRD) (formerly the Department of Fair Employment and Housing). The employee count for these purposes consists of full-time workers, part-time workers, and/or workers hired through labor contractors. This year, the reports are due on May 8, 2024, for reporting year 2023.

Continue Reading Deadline for California Employer’s Pay Reports Fast Approaches

The California Supreme Court recently issued a decision in Huerta v. CSI Electrical Contractors addressing three questions from the United States Court of Appeals for the Ninth Circuit regarding Wage Order No. 16 (which applies to certain on-site occupations in the construction, drilling, logging, and mining industries) and the scope of the term “hours worked.”

Continue Reading The California Supreme Court Clarifies Compensable Time

In an important change, beginning on March 20, 2024, employees may file lawsuits, including class actions, against their employers for alleged violations of New York City’s Earned Safe and Sick Time Act (the Sick Leave Law), rather than having to rely on agency enforcement actions. Such lawsuits may be filed within two years after the date on which the employee “knew or should have known” of the alleged violation. As a reminder, the Sick Leave Law generally requires employers with between five and 99 employees to provide up to 40 hours of annual sick leave; employers with 100 or more employees must provide up to 56 hours of annual sick leave. Sick leave may be used for purposes including an employee’s own or a covered family member’s mental or physical illness or need for a medical diagnosis, care or treatment, or to obtain services in connection with family offense matters, sexual offenses, stalking, or human trafficking. This new private right of action highlights the importance of complying with the Sick Leave Law, including maintaining detailed policies, properly advising employees of their rights, and correctly administering policies and the law itself.

Update: Further to an earlier Tip, New York’s law prohibiting employers from requesting or requiring employees or job applicants to disclose the login credentials for their personal social media accounts took effect March 12, 2024. Employers should carefully review their practices, including recruiting and hiring procedures and training, to ensure compliance.

Read the full Update here.

Recently, the U.S. District Court for the District of Arizona held in Castillo v. Spencer’s Air Conditioning & Appliance, Inc., 2024 WL 706939, that while the question of whether an entity is a joint employer under the Fair Labor Standards Act (FLSA) is a question of law, summary judgment was not appropriate because there were material disputed facts at issue in the analysis of the economic reality of an alleged joint employment relationship. 

Continue Reading Arizona District Court Denies Summary Judgment on Joint Employment Relationship Issue

Assembly Bill 1228 took effect on April 1, 2024, addressing, in part, the California fast food minimum wage law. However, on March 25, 2024, California Governor Gavin Newsom signed Assembly Bill 610 (AB 610), which added exceptions to the fast food minimum wage law.

Continue Reading New Exceptions to California Fast Food Minimum Wage Law

As previously reported, California law (AB 1228) will require fast food workers to be paid a minimum of $20 per hour effective April 1, 2024. The Labor Commissioner’s Office has posted a Fast Food Minimum Wage Frequently Asked Questions to address the new law. The FAQ provides that to qualify as an exempt employee, an employee must receive a salary of at least two times the state minimum wage and meet other specific requirements. The FAQ notes that for employees employed by a fast food restaurant, this means that the minimum salary amount is $83,200 starting on April 1, 2024. Further, a supplement to the minimum wage order should also be posted and can be found here. California employers with questions about AB 1228 should contact experienced counsel.

The California Department of Industrial Relations (DIR) and the Labor Commissioner’s Office launched a program creating opportunities for local prosecutors to obtain funding for wage theft prosecutions. The program, called the Workers’ Rights Enforcement Grant, will provide eligible prosecutors with two annual grant awards of $8,550,000 each, for a total of $18 million. The first grant cycle is 2024 – 2025, and the second is 2025 – 2026.

Continue Reading California Launches $18 Million Program Intended for Wage Theft Investigation

The Federal Acquisition Regulatory Council issued a Proposed Rule, “Pay Equity and Transparency in Federal Contracting,” on January 30, 2024. The Proposed Rule would amend the Federal Acquisition Regulations (FARs), which apply to federal government commercial contracts to be principally performed in the United States and its territories. The rule imposes three new requirements on federal contractors and subcontractors.

Read the full Update here.