Misclassification Exempt-Employees

News & Analysis as of

Two Good Reasons to Keep Your Company's Job Descriptions Current and Accurate

Job descriptions often fall to the bottom of the human resource “to do” list. An audit of almost any company’s job descriptions will reveal job descriptions that are outdated, vague and carried forward from the company’s...more

Third Circuit Upholds the Motor Carrier Exemption for Drivers Who Did Not, But Reasonably Could Have Been Expected to, Cross State...

Are drivers of a motor carrier who rarely or never drive the carrier's interstate routes covered by the motor carrier exemption of the Fair Labor Standards Act?  Yes, according to the U.S. Court of Appeals for the Third...more

Wage-Hour Audits: Lessons Learned From Chipotle’s Heartburn

Beloved burrito-maker Chipotle Mexican Grill has found itself in a situation messier than the finger foods that brought the company more than $4 billion in revenue last year. A magistrate judge in Scott v. Chipotle Mexican...more

Trial Court Should Have Certified Class Claims Of Managerial Employees

Roberto Martinez and three other current or former employees of Joe’s Crab Shack (“JCS”) filed this putative class action asserting that they and similarly situated salaried managerial employees had been misclassified as...more

Mendiola Decision Highlights a Key Issue - The Calculation of "Hours Worked"

The continuing stream of lawsuits challenging employers’ payroll practices is well-documented. A large portion of wage and hour lawsuits seek to recover overtime compensation that should have been paid to employees who were...more

Wondering what the Department of Labor will be doing this year? Here's what the agency says:

?According to the U.S. Department of Labor (DOL), it plans to increase its emphasis on audits and prosecutions of minimum wage and overtime violations, to increase its scrutiny of independent contractor classifications, and...more

Claims Handlers: It’s Time to Adjust Our Claims!

Many insurers have a longstanding practice of paying claims adjusters a set weekly salary, regardless of the number of hours they actually work. The practice has support in federal labor regulations; the regulations...more

Feds Get Technical! Technical! (Sung to Olivia Newton John’s “Let’s Get Physical” of course)

We already know that California’s exempt/non-exempt classification scheme is a complicated system of checks and balances that takes most employers the help of an attorney to traverse. Well, just so we don’t get overly...more

California Supreme Court Clarifies Commissioned Employee Exemption

Peabody v Time Warner Cable, Inc. (July 14, 2014, No. S204804) 2014 Cal Lexis 4755, came to the California Supreme Court from the Ninth Circuit, through a certification procedure that is used when a question can determine the...more

Third Circuit: Availability of Classwide Arbitration is an Issue for the Courts – Not Arbitrators – Unless the Parties Agreed...

Wednesday, the Third Circuit held that the determination of whether an agreement allows classwide arbitration is a question of arbitrability for the courts “unless the parties unmistakably provide otherwise.” Opalinski v....more

Employee Misclassification Is an Easy, and Costly, Mistake

Classification of employees is no simple matter. Litigation over misclassification of employees is a growing trend in Ohio and throughout the country. Corporations like Walmart and Yelp have been forced into multi-million...more

Department of Labor to Revise Federal Regulations Interpreting the Right to Receive Overtime Pay under the Fair Labor Standards...

In a March 2014 Memorandum, President Obama directed the Department of Labor to “modernize and streamline” the regulations that dictate when an employer may lawfully designate an employee as exempt from overtime pay under the...more

When Numbers Lie: The Limits of Statistical Methodology in California Class Action Management

Courts that oversee class actions can use class sampling and other statistical methods to manage litigation involving large numbers of plaintiffs and the vast amount of data associated with them. In California, however, those...more

California Supreme Court: Newspaper Carriers Can Proceed With Class Action Challenging Independent Contractor Status

On June 30, 2014, the California Supreme Court issued a decision addressing how trial courts should determine the appropriateness of class certification in cases where workers claim they were improperly classified as...more

November Target For Proposed Exemption Changes

As we reported previously, in March President Obama directed the U.S. Labor Department to "modernize and streamline" its regulations governing the federal Fair Labor Standards Act's Section 13(a)(1) executive, administrative,...more

Statistical Sampling in Class Action Trial Violated Defendant's Due Process Rights

In a unanimous decision, the California Supreme Court on May 29 reversed a class action verdict for a class which was based on a flawed statistical model to determine liability and damages. Duran v. U.S. Bank National...more

When are Paralegals Illegal?

When they are not properly paid. A number of law firms and corporate employers consider paralegals to be exempt from overtime. At the federal level, the Department of Labor (DOL) has stated that most paralegals lack...more

Ninth Circuit Clarifies CAFA Removal Requirements

In its recent per curiam opinion in Rea v. Michaels Stores, Inc., the U.S. Court of Appeals for the Ninth Circuit clarified rules and procedures relevant to defendants seeking to remove cases to federal court. In Rea,...more

Employment Tip #2

Beware of wage and hour violations! There is NO defense for misclassification of employees as “exempt” employees who are not actually spending more than fifty percent of their time using their “independent discretion and...more

Passage of Increase in California’s Minimum Wage Could Impact More Than Just Hourly, Minimum Wage Workers

On September 25, 2013, California Governor, Jerry Brown, signed a bill (Assembly Bill No. 10) that will raise the hourly minimum wage up 25% over the next few years. First, the minimum wage will increase in less than one...more

California Wage/Hour Update No. 3, July 2013: Court Clarifies Impact Of Multi-Tasking On Exempt Status

The salaried exemptions remain an actively litigated area in employment litigation. In order to be exempt from overtime and related regulations governing timekeeping and meal and rest periods, it’s not enough that an...more

Misclassification of Workers: An Attempt to Save Could Cost Your Business A Bundle

In recent months, many business owners have noticed that their classification of workers is being closely scrutinized by a variety of federal and state regulatory agencies. Whether a worker is classified as an “employee” as...more

Inside Sales Exemption Poorly Understood by Many Employers

Over the past decade, employers have faced a continuing stream of claims alleging that employees have been misclassified as exempt from overtime compensation rules, as well as state laws regarding meal periods and rest...more

Plaintiffs Must Offer "Significant Proof" Of A Common Policy Or Practice To Satisfy Commonality Under Rule 23 Post-Dukes

On January 28, 2013, Hon. George King of the United States District Court for the Central District of California issued an order in Pedroza v. PetSmart, Inc. denying class certification of exempt misclassification claims...more

California’s Wage Orders: Landmines and Goldmines

Originally published in the Orange County Lawyer magazine - June issue, Vol. 54 No. 6 (pages 12-13). All California employers must comply with a multitude of wage and hour laws that go well beyond setting minimum wages...more

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