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California's New PAGA Bill: Key Changes and Implications for Employers

The State of California significantly overhauled the Labor Code Private Attorneys General Act of 2004 (PAGA) with the recent enactment of Assembly Bill 2288 and Senate Bill 92. This LawFlash summarizes some of the key...more

California Supreme Court Confirms There is a Good Faith Defense to Wage Statement Penalties

The California Supreme Court recently issued its opinion in Naranjo v. Spectrum Security Services Inc., resolving a split of authority in California state and federal courts whether there is a “good faith” defense to claims...more

Department of Labor Issues Final Rule Raising Salary Level for FLSA ‘White Collar’ Exemptions

On April 24, 2024, the US Department of Labor (DOL) announced the highly anticipated revisions to the salary thresholds for the Fair Labor Standards Act’s (FLSA’s) “white collar” overtime exemptions. The update significantly...more

California Supreme Court Ruling Gives Guidance on Compensable Time Under California Law

The California Supreme Court issued its decision in Huerta v. CSI Electrical Contractors, providing further guidance to employers on when employee time spent in (1) security exit procedures, (2) traveling on employer...more

California Supreme Court: Trial Courts Lack Authority to Strike or Dismiss PAGA Claims on Manageability Grounds

In Estrada v. Royalty Carpet Mills Inc., a unanimous decision by the California Supreme Court resolves a split between California courts of appeal by ruling that a trial court does not have inherent authority to strike PAGA...more

Employee Required to Arbitrate Individual PAGA Claim Maintains Standing to Pursue Representative PAGA Court Claims

In Adolph v. Uber Technologies Inc., the California Supreme Court held that it is not bound by the US Supreme Court’s interpretation of state law in Viking River Cruises v. Moriana, ruling that an order compelling arbitration...more

California’s Pandemic Stay-at-Home Order Didn’t Excuse Employer’s Obligation to Reimburse Necessary Work-From-Home Expenses

The California Court of Appeal held in Thai v. International Business Machines Corp. that even if government-mandated stay-at-home orders during the COVID-19 pandemic were an intervening cause of employees working from home...more

Ninth Circuit Rejects California Ban on Mandatory Arbitration

California employers can require arbitration of employees’ California Fair Employment and Housing Act and Labor Code claims as a condition of employment, according to a recent circuit court ruling....more

US Supreme Court Finds Individual PAGA Claims Can Be Compelled to Arbitration

The US Supreme Court has issued its highly anticipated opinion in Viking River Cruises Inc. v. Moriana, on whether the Federal Arbitration Act (FAA) preempts California law that invalidates contractual waivers in arbitration...more

Recent Legal Developments Could Significantly Impact Employer Arbitration Agreements

Despite the passage of the Ending Forced Arbitration of Sexual Assault and Sexual Harassment Act on March 3, arbitration remains a viable option for disputes outside the act’s purview. Several recent and pending legal...more

Ninth Circuit Permits California Ban on Mandatory Arbitration

In a 2-1 decision, the US Court of Appeals for the Ninth Circuit on September 15 reversed a district court’s order enjoining the enforcement of California Assembly Bill 51 (AB 51) codified as Labor Code Section 432.6. Chamber...more

California Supreme Court: Meal, Rest, and Recovery Period Premiums Must Be Calculated Based on Hourly and Nondiscretionary Wages

The California Supreme Court ruled on July 15 that California employers must calculate nonexempt employees’ meal, rest, and recovery period premium payments based on both hourly wages and any other nondiscretionary wage...more

New California Law Makes It Much Tougher to Treat Workers as Independent Contractors

Assembly Bill 5, signed into law on September 18, generally codifies Dynamex and establishes difficult standards for classifying workers as independent contractors. Employers should review their independent contractor...more

California Court of Appeal: Two-Hour On-Call Scheduling Policy May Create Reporting Time Pay Liability

The California Court of Appeal recently held that if an employer requires an employee to call in two hours before the start of a scheduled shift to find out if the employee will be required to work the shift, and the employee...more

California Court Strikes Down Employee Nonsolicitation Provision

The California Court of Appeal also concluded that a “customer list” of identities and contact information was not protectable as a trade secret. In AMN Healthcare, Inc. v. Aya Healthcare Services, Inc., the California Court...more

California Supreme Court Holds That Employees Must Be Paid for Routinely Worked Minutes Off the Clock

In Troester v. Starbucks Corp., the California Supreme Court held that the Fair Labor Standards Act’s de minimis doctrine does not apply to wage claims under California law. However, the court left open the question of...more

California Supreme Court Changes Rules for Classifying Workers as Independent Contractors by Adopting ABC Test in Some...

The April 30 ruling adopts the more stringent “ABC test” to distinguish between independent contractors and employees for purposes of claims based on California’s Wage Orders. Because satisfying this test is more difficult...more

California Supreme Court Rules on Overtime Rate Calculation for ‘Flat Sum’ Bonus

The March 5 ruling, which will apply retroactively, establishes a method that will result in a much higher overtime rate than the federal method. California employers who pay flat sum or other similar bonuses to nonexempt...more

California Supreme Court: Statewide Employee Contact Info Generally Discoverable in PAGA Actions

California’s Supreme Court holds that representative plaintiffs in PAGA actions brought in state court on behalf of California employees are generally entitled to discovery of statewide employee contact information as an...more

California Court of Appeal Expands Law on Separate Rest Break Payments

Employees who are paid solely on commission must receive separate compensation for rest breaks. On February 28, the California Court of Appeal ruled in Vaquero v. Stoneledge Furniture, LLC that employees who are paid...more

California Supreme Court: No On-Duty, On-Call Rest Breaks

The California Supreme Court holds that California wage and hour laws prohibit on-duty and on-call rest breaks. On December 22, 2016, the California Supreme Court ruled that California “employers must relieve their...more

Texas Court Enjoins Most of DOL's New Overtime Regulations

The regulations were scheduled to go into effect on December 1. On November 22, a judge from the US District Court for the Eastern District of Texas issued an order enjoining, on a national basis, all but a few parts of...more

Ninth Circuit: Arbitration Agreements Cannot Require Employees to Individually Arbitrate Claims in Separate Proceedings

The Ninth Circuit is the latest court to consider the NLRB’s position that class and collective action waivers violate the NLRA; here, the court ruled that an arbitration agreement that completely prevents employees from...more

Checklist for Employers to Comply with New California Laws

Employers should take action to ensure compliance with new employment laws that take effect January 1, 2015. In September 2014, California Governor Jerry Brown signed more than 300 new laws, many of which may require...more

California Supreme Court Enforces Class Action Waivers in Employee Arbitration Agreements

However, the court found PAGA representative action waivers unenforceable; employers should consider practical implications with respect to arbitration agreements. On June 23, the California Supreme Court issued its...more

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