News & Analysis as of

Wage and Hour Good Faith

Weintraub Tobin

PAGA Reform: Key Takeaways for California Employers

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On July 1, 2024 Governor Newsom signed SB-92 and AB-2288 into law, which instituted sweeping reforms to California’s Private Attorneys General Act (“PAGA”). PAGA was passed 20 years ago to provide a private mechanism for...more

Jackson Lewis P.C.

California Overhauls Private Attorneys General Act

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On July 1, 2024, California Governor Gavin Newsom signed two bills, Senate Bill 92 and Assembly Bill 2288, that amend the state’s Labor Code Private Attorneys General Act (PAGA), which deputizes private parties to enforce the...more

Manatt, Phelps & Phillips, LLP

California Supreme Court Finds Good Faith Defense For Employers

When is an employer’s violation of providing employees with wage statements knowing and intentional, triggering financial penalties? Taking its second look at the case, the California Supreme Court ruled that an...more

Fox Rothschild LLP

California Supreme Court Holds Good Faith Defense Precludes Penalties for Wage Statement Noncompliance

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In a significant victory for employers, the California Supreme Court recently held that if an employer reasonably and in good faith believed it was providing complete and accurate wage statements in compliance with wage...more

Fisher Phillips

Pay Transparency Comes to Maryland: 6 Key Takeaways and What You Should Do Next

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Maryland is the latest state to jump on the pay transparency bandwagon after Gov. Wes Moore signed new “wage range” requirements into law last month. Beginning October 1, Maryland employers must include salary and benefits...more

ArentFox Schiff

In a Rare Win for Employers, the California Supreme Court Holds That Wage Statement Penalties Are Not Available if an Employer...

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In Naranjo v. Spectrum Security Services, Inc., Case No. S279397 (May 6, 2024), the California Supreme Court held that if an employer reasonably and in good faith believed it was providing a complete and accurate wage...more

Littler

California Supreme Court Affirms Good-Faith Efforts May Shield Employers in Wage Statement Lawsuits

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In a favorable ruling for employers defending against wage statement compliance claims, the California Supreme Court in Naranjo v. Spectrum Services Inc. (Naranjo) settled an age-old dispute by determining that an employer...more

Amundsen Davis LLC

California’s Supreme Court Makes It Harder For Employees to Recover Penalties In Wage Statement Claims

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On May 6, 2024, California LawCalifornia’s Supreme Court, in a rare and surprising “employer friendly” decision, held that an employer can avoid penalties under California’s wage statement law, Cal. Lab. Code § 226, if it...more

Ogletree, Deakins, Nash, Smoak & Stewart,...

California Supreme Court Rules Employer Can Avoid Penalties for Good-Faith Wage Reporting Violation

On May 6, 2024, the Supreme Court of California held that when an employer “reasonably and in good faith” believes it complied with California’s legal requirement to provide accurate wage statements and it does not, the...more

Davis Wright Tremaine LLP

California Supreme Court: Employees Are Not Entitled to Wage Statement Penalties When Employer Acted in Good Faith

Earlier this week, a unanimous California Supreme Court held that employers have a viable good faith defense to claims for statutory penalties arising out of wage statement violations. The Court's decision, in Naranjo v....more

Payne & Fears

Employers Have a Good Faith Defense to Statutory Penalties for Wage Statement Violations

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The Question - The basics of California’s wage statement requirements should be familiar to employers. The consequences for failing to comply with these requirements can be severe....more

CDF Labor Law LLP

California Supreme Court Provides Relief and Hope for Good Faith Employers

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This week, the California Supreme Court filed a decision in Naranjo v. Spectrum Security Services, Inc., S279397, holding that “an employer’s objectively reasonable, good faith belief that it has provided employees with...more

K&L Gates LLP

Keeping the Faith: Employer's Good Faith Belief Prevails

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In a rare victory for employers, the California Supreme Court unanimously held in Naranjo v. Spectrum Sec. Serv., Inc., S279397 (Decided 6 May 2024) that an employer’s “objectively reasonable, good faith belief” that it has...more

Seyfarth Shaw LLP

Good Faith Defense Applies To Wage Statement Penalty Claims

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The California Supreme Court concluded that the “good faith” defense applies to claims seeking to impose penalties under California Labor Code section 226. An employee must show that an employer’s failure to comply with...more

Fisher Phillips

Good Faith Goes a Long Way to Defeat Wage Statement Claims: 4 Tips for Employers After California Supreme Court Win

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Employers finally received some welcome news from the California Supreme Court Monday and now have a better shot of successfully using a “good faith” defense to wage-and-hour lawsuits. According to the ruling, if an employer...more

Constangy, Brooks, Smith & Prophete, LLP

Respondeat superior and other Latin terms you should know

When I was in high school, the foreign language offerings were French and Spanish. That was a long, long time ago, in a galaxy far, far away. Today, the best I can do in Spanish is ask your name, what time it is, and how to...more

Fox Rothschild LLP

Proposed Rules Issued for New York’s Pay Transparency Law: What You Need to Know

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The New York Department of Labor (NYDOL) has issued proposed regulations related to New York’s Pay Transparency Law, which are open for comment until November 12, 2023. In addition, the NYDOL issued a fact sheet and a set of...more

Fisher Phillips

New York Proposes Pay Transparency Regulations: 10 Takeaways for Employers

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With only a few days left before New York’s pay transparency law takes effect, the state labor department issued proposed rules aiming to clarify employers’ wage disclosure obligations. Though the regulations are not yet...more

American Conference Institute (ACI)

Addressing the Jurisdictional Challenges of Compensation Clawbacks

The Department of Justice’s newly launched compensation and clawback pilot program is certain to bring with it numerous implementation hurdles and jurisdictional challenges, but it also incentivizes companies to have in place...more

Weintraub Tobin

Safe Harbor from Class-Based Waiting Time and Wage Statement Penalties for Employers with “Good Faith Disputes” That Meal or Rest...

Weintraub Tobin on

Almost exactly one year ago, the California Supreme Court issued its decision in Gustavo Naranjo v Spectrum Security Services, Inc. (“Naranjo”), reviewing a decision by the Second Appellate District (the “Appellate Court”) in...more

Constangy, Brooks, Smith & Prophete, LLP

Employment law and Aesop

Morals based on a real court decision. My law partner Jon Yarbrough alerted me to a recent court decision that is full of little gems for employers. I thought I'd break the decision down into "true fables," each with a...more

ArentFox Schiff

Attention Los Angeles Retail Businesses: Fair Work Week Ordinance Goes into Effect

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Los Angeles retail businesses must now comply with a new ordinance that promotes predictable work hours for employees. On April 1, 2023, the Los Angeles Fair Work Week Ordinance went into effect, which applies to retail...more

Manatt, Phelps & Phillips, LLP

California Appellate Panel Defines ‘Willful’ Wage Nonpayment and ‘Good Faith Dispute’

A California appellate panel has weighed in on premium pay in a decision on remand from the state’s highest court, with an employer-friendly result....more

ArentFox Schiff

Good Faith Defense Defeats Penalties on California Break Issues

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Last year, in Naranjo v. Spectrum Security Services, Inc., 13 Cal.5th 93 (2022), the California Supreme Court held that an employer’s failure to timely pay premium pay for meal and rest break violations could subject the...more

Fox Rothschild LLP

Wage Statement Violations – Court Recognizes Good-Faith Dispute Defense

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Good news – employers may now argue that wage statement errors were not “willful” as a defense to wage statement claims. Not everything from Naranjo v. Spectrum Security Services, Inc. was bad....more

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