Employers who utilize the Internal Revenue Service’s (IRS) standard mileage reimbursement rates should be aware that the IRS has updated its standard mileage rates, effective January 1, 2023. This update includes three types of rates, including the business use rate, which is now 65.5 cents per mile driven. This rate represents an increase of
California Labor Commissioner Issues FAQs on New Pay Data and Salary Disclosure Bill
Last fall, California Governor Gavin Newsom signed a new pay transparency law effective January 1, 2023. A description of the law can be found here. This new law includes reporting requirements for employers with 100 or more employees and, for employers with 15 or more employees, requires pay scale disclosures to be provided in
DIR Updates 2023 California Exemption Rates for Computer Software Employees and Licensed Physicians and Surgeons
Each year, the California Department of Industrial Relations (DIR) updates the minimum pay requirements for certain exempt professions. This October, the DIR updated the 2023 rates for computer software employees and licensed physicians and surgeons. The new rates will go into effect on January 1, 2023, and reflect the 7.6% increase in the California Consumer
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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California Governor Signs New Pay Data and Salary Disclosure Bill
Governor Gavin Newsom signed California’s Senate Bill 1162, a pay transparency law aimed at identifying pay disparities based on gender, ethnicity, and race, on September 27, 2022. The bill expands employers’ obligations to report pay data and requires certain employers to disclose salary ranges for employees and positions available to applicants.
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California Assembly Amends FAST Recovery Act Proposal
On January 20, 2022, members of the California Assembly voted 43-13 to approve amendments to Assembly Bill 257, which seeks to enact the Fast Food Accountability and Standards Recovery Act (known as the “FAST Recovery Act”). Initially introduced on January 15, 2021, AB 257 would establish a Fast Food Sector Council (“Council”) charged with establishing sectorwide “minimum standards on wages, working hours, and other working conditions related to the health, safety, and welfare of, and supplying the necessary cost of proper living to, fast food restaurant workers, as well as effecting interagency coordination and prompt agency responses in this regard.”
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Minimum Wage Increases to $15 for Federal Contractors Beginning January 30, 2022
While President Biden’s vaccine mandate wends its way through the courts, another of the administration’s early initiatives impacting federal contractors is set to go into effect early next year.
On November 22, 2021, the Department of Labor (DOL) published its Final Rule implementing Executive Order 14026, which raises the minimum wage requirement for anyone working “on or in connection with” a covered federal contract from $10.95 to $15.00 per hour. The new minimum will also increase annually, starting January 1, 2023, to an amount determined by the Secretary of Labor based on inflation. The published rule explains that employees perform “on” a contract if they directly perform the specific services called for by the contract and perform “in connection with” a contract if their work activities are otherwise necessary to the performance of the contract. Employees performing “in connection with” covered contracts are excluded from coverage if they spend less than 20% of their work hours in a particular workweek doing covered work.
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U.S. Department of Labor Addresses Tips
Clarification Regarding Tip Pool Participation for Managers and Supervisors
The U.S. Department of Labor (DOL) recently clarified the rules under which managers and supervisors can participate in a mandatory tip pool. In a final rule effective November 23, 2021, the DOL clarified that managers and supervisors are permitted to contribute tips to a mandatory tip
Employee Asserts Claims of Uncompensated COVID-19 Screening Practice
On October 18, 2021, Plaintiff Ysa Santana Reynoso (Reynoso), a former employee of pork processor Hatfield Quality Meats, Inc. (Hatfield), filed a class action lawsuit before a state court in Pennsylvania against Hatfield seeking unpaid wages under the Pennsylvania Minimum Wage Act (PMWA) for time spent undergoing mandatory COVID-19 screenings.
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California Takes Aim at Productivity Quotas at Warehouse Distribution Centers
On September 22, 2021, Governor Gavin Newsom signed Assembly Bill No. 701 (“AB 701”), which makes it unlawful for employers to require nonexempt employees at warehouse distribution centers (“Covered Employee” or “Covered Employees”) to meet production quotas that prevent compliance with meal or rest periods, use of bathroom facilities (including reasonable travel time to and from bathroom facilities), or occupational health and safety laws (“Prohibitive Production Quota”). Employers are also prohibited from taking adverse action against Covered Employees for failing to meet a Prohibitive Production Quota. AB 701 will take effect January 1, 2022 (the “Effective Date”).
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