As previously discussed here, the California Supreme Court determined that “missed-break premium pay constitutes wages” for purposes of waiting-time penalties pursuant to California Labor Code Section 203 in Naranjo v. Spectrum Security Services, Inc. The Supreme Court also found that employers must include missed-break premium pay on wage statements. It then remanded the case
California Supreme Court Agrees To Review Case Involving California Timekeeping Rules
In Camp v. Home Depot U.S.A., Inc., H049033, the California Court of Appeal for the Sixth District analyzed legal authority regarding an employer’s rounding practices as they pertain to timekeeping. Specifically, in Camp, the trial court granted summary judgment for the employer after determining the employer had a facially neutral rounding policy, which policy would not result in a failure to compensate employees for overtime. On appeal, the Sixth District reversed and remanded the trial court’s order granting summary judgment. In doing so, the court determined that “in relying on its quarter-hour time rounding policy, [the employer] fails to meet its burden to show that there is no triable issue of material fact regarding whether [the plaintiff] was paid for all the time he worked.” In effect, the Camp court overturned prior precedent, which approved facially neutral rounding policies that did not result in underpayment of employees for overtime.
US Department of Labor Proposes Independent Contractor Rule
On October 13, 2022, the U.S. Department of Labor (DOL) published a Notice of Proposed Rulemaking (the Proposed Rule) that provides guidance on determining employee or independent contractor classification under the Fair Labor Standards Act (FLSA). Proper classifications are significant because independent contractors are not afforded wage-and-hour protections under the FLSA and/or applicable state law, such as minimum wage for all hours worked or overtime compensation for over 40 hours worked in one workweek. Misclassification can subject companies and organizations to class and collective actions and expose them to significant liability.
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Giving a Nondiscretionary Bonus? Check the Regular Rate Calculation
Determining an employee’s overtime rate of pay can be tricky. The U.S. Department of Labor (DOL) recently found an employer owed over $1 million in back wages to employees in California and Kentucky for violations that included miscomputation of overtime pay rates. The employer failed to account for certain bonuses earned by nonexempt workers, and therefore paid overtime rates that were too low.
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CA Court Confirms Employers Must Timely Pay and Report Meal Period Premiums or Face Additional Penalties
On May 23, 2022, the California Supreme Court issued a seminal opinion in Naranjo v. Spectrum Security Services, Inc., which found that employees can recover penalties for failure to timely pay wages at termination and failure to provide accurate itemized wage statements based on untimely paid or unreported meal and rest period premiums. Prior
Department of Labor Warns Employers to Know the Rules for Putting Minors to Work
Among employers’ efforts to stay on top of numerous wage and hour issues, the rules surrounding child labor have long been considered irrelevant by many large employers because persons under age 18 did not make up a significant segment of their workforce. With acute labor shortages throughout the United States leading to more job openings than job seekers, particularly at the entry level, this is changing. On March 29, the U.S. Department of Labor (DOL) issued a press release to highlight some of its recent investigations and remind employers of regulations and limitations related to the employment of youth.
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California Requires COVID-19 Supplemental Paid Sick Leave Through September 30, 2021
On March 19, 2021, Governor Newsom approved SB 95, which requires COVID-19 supplemental sick leave through September 30, 2021 and creates new COVID-19 vaccine–related paid sick leave obligations for covered employers. The new law, which adds Sections 248.2 and 248.3 to California’s Labor Code, is effective immediately, but the employer obligation to provide COVID-19
New York Implements Targeted Paid Vaccination Leave
On March 12, 2021, New York passed a new law requiring all New York employers to provide up to four (4) hours of paid leave for the purposes of receiving the COVID-19 vaccine. New York is the first state to implement paid leave specifically limited to time spent getting vaccinated. The law is effective as
New San Francisco COVID-19–Related Employment Protections Ordinance
The City and County of San Francisco recently enacted an emergency Ordinance, the text of which is available here, effective September 11, 2020, which prevents all employers from taking adverse employment actions (e.g., firing, threatening to fire, disciplining, or in any manner discriminating) against employees and independent contractors (collectively “Workers,” as defined in the
The Department of Labor (DOL) May Issue Revised Rules Regarding the Families First Coronavirus Response Act
On August 3, 2020, a court in the Southern District of New York vacated portions of the Department of Labor’s Regulations Regarding the Families First Coronavirus Response Act (FFCRA) (discussed here). In the wake of that decision, employers have scrambled to understand how to proceed and wondered whether the DOL would update or revise