News & Analysis as of

Captain Obvious Issues Most Obvious FLSA Decision of 2014 (So Far...)

If you have been anywhere near a TV or radio over the past few months, you have probably seen or heard the ads for Hotels.com featuring Captain Obvious. If you’re from the Midwest, and Indiana in particular, it has probably...more

Peabody Decision Tightens Requirements for Commission Payments and Exempt Status

State and federal law create an exemption from overtime compensation for employees engaged in sales who satisfy specific criteria. Although the requirements under each set of laws are not identical, each generally provides...more

U.S. Supreme Court Grants Review of Restrictions on Federal Agency Rulemaking in Mortgage Loan Officer Overtime Case

In our July 2013 alert, we reported on a federal appellate court ruling in Mortgage Bankers Association v. Harris. Mortgage Bankers Association challenged a U.S. Department of Labor (DOL) 2010 opinion letter in support of...more

How to Avoid Emerging Wage & Hour Risks: Exempt or Non-Exempt, Contractor Liability & Minimum Wage Hikes

This webinar was designed to help employers keep up with recent developments in the rapidly-evolving area of wage and hour law compliance. These developments include ongoing efforts by federal and state leaders to increase...more

Seeking Credit for Deferred Commissions? You Might Get Declined

Last week, the California Supreme Court issued its decision in Peabody v. Time Warner Cable, Inc., deciding that employers may not apply commission payments to earlier pay periods for the purposes of establishing that an...more

Take 5 Newsletter: Five Labor and Employment Issues Faced by Health Care Employers

As the Affordable Care Act and the challenges of reimbursement and funding for health care services drive changes in the health care delivery system and employment in the industry, new issues in labor and employment law are...more

Standard for Class Certification of Independent Contractors Clarified by California Supreme Court

In Ayala v. Antelope Valley Newspapers, the California Supreme Court held that the proper test for determining whether newspaper carriers could proceed as a class on the issue of their employment status was the employer’s...more

New Jersey Bill Seeks to Expand Overtime and Minimum Wage Exemption to Private Summer Camp Employees

Currently, New Jersey overtime and minimum wage laws do not apply to summer camps (and other summer conferences and retreats) operated by non-profit or religious corporations or associations. On June 5, 2014, the Assembly...more

California Supreme Court Holds Independent Contractor Misclassification Claims Can Be Determined by Common Proof – But Only in...

In its first employment-related class certification decision since its seminal ruling in Duran v. U.S. Bank, the California Supreme Court, in a fragmented opinion, reversed the denial of class certification for a group of...more

Quirky Question #235, Payment of Wages – Better Late Than Never Is Half Right

Question: My company was in a tight spot last month with cash flow and we had to delay payroll by a few days. We did end up paying everyone what they were owed. I now have an employee, however, who is claiming the late...more

Another Federal Court Finds "Fluctuating Workweek" Overtime Compensation Violates Pennsylvania Minimum Wage Act

Recently, Judge Mitchell Goldberg of the United States District Court for the Eastern District of Pennsylvania issued a decision in Verderame v. RadioShack Corp., finding that the "fluctuating workweek" method of overtime...more

Six Days on the Road and I'm Gonna Park My Truck to Comply with State Laws Tonight

My apologies to Dave Dudley. The song “Six Days on the Road” just doesn’t stand up to the changes we would have to make after the Ninth Circuit’s decision that the state meal and rest break laws are not preempted by federal...more

California Supreme Court Splits From Federal Law on Commissioned Employee Exemption Compliance

On July 14, 2014, the California Supreme Court clarified the commissioned employee exemption from overtime under California law. In Peabody v. Time Warner Cable, Inc., the court confirmed that calculations necessary to...more

California Supreme Court Ruling Limits Commission Wage Allocation

On June 14, 2014, the California Supreme Court held that employers could not satisfy California’s compensation requirements for the commission sales exemption by attributing commission wages paid in one pay period to other...more

Did You Know…California Supreme Court Holds That a Challenge to Independent Contractor Status Is Class Certifiable

In Ayala v. Antelope Valley Newspapers the California Supreme Court held that the critical factor in determining whether a worker is an employee or an independent contractor is “the degree of a hirer’s right to control how...more

Federal Court: Employer’s Method of Calculating Overtime Violated Pa. Statute

A federal district judge in Pennsylvania recently found that RadioShack’s method of computing overtime violates the Pennsylvania Minimum Wage Act (PMWA). In Verderame v. RadioShack Corp., the plaintiff brought a putative...more

California Supreme Court Nixes Certification Denial Ruling Against Newspaper Carriers Classified as Independent Contractors

The California Supreme Court recently held that a trial court needed to revisit its class certification decision regarding newspaper carriers who alleged that they should have been classified as employees rather than...more

California Employers May Not Allocate Commissions Paid In One Pay Period To Different Pay Periods To Satisfy California Wage And...

The California Supreme Court recently considered whether an employer may allocate an employee's commission wages from one pay period to other pay periods in order to meet the commissioned employee overtime exemption. (Susan...more

Unpaid Prevailing Wage Assessments and Actions: Ways a General Contractor (and Its Surety) Can Protect Itself or Limit Its...

General contractors and their sureties on public works construction projects in California have faced an onslaught of claims, assessments, and lawsuits based on the failure of subcontractors, regardless of tier, to pay their...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

City of San Diego Imposes Minimum Wage Hike and Sick Pay Ordinance

Rejecting a call to place a proposed minimum wage hike on the November ballot as a referendum item, on July 14 the San Diego City Council approved an ordinance raising the city’s minimum wage to $11.50 per hour by 2017....more

Ninth Circuit Holds FAAAA Does Not Preempt California’s Meal and Rest Break Laws

Last week the U.S. Court of Appeals for the Ninth Circuit concluded, in Dilts v. Penske Logistics, LLC, that the Federal Aviation Administration Authorization Act of 1994 (FAAAA) does not preempt the application of...more

California Supreme Court Clarifies Requirements of Commissioned Employee Exemption

In recent years there has been substantial litigation regarding whether and how employers may satisfy California minimum wage requirements for compensation plans involving commissions. In Peabody v. Time Warner Cable, Inc.,...more

California Employment Law Notes - July 2014

"Unauthorized Alien" Who Provided False SSN Can Proceed With Disability Discrimination Lawsuit - Salas v. Sierra Chem. Co., 2014 WL 2883878 (Cal. S. Ct. 2014) Vicente Salas worked on Sierra Chemical's production...more

How Employers Fared With the Supremes This Term and What the Future May Hold

During its recently concluded 2013 term, the U.S. Supreme Court issued decisions in two labor and employment cases, three constitutional or quasi-constitutional cases that impact labor and employment concerns, and one tax...more

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