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California’s Amended PAGA Statute Eases Burdens on Employers

The California Legislature passed legislation on June 27, 2024, representing a significant overhaul of the Labor Code Private Attorneys General Act of 2004 (PAGA). PAGA permits a current or former employee to pursue an action...more

California Supreme Court: Exit Security Checks in Personal Vehicles Are Compensable

On March 25, 2024, the California Supreme Court held that workers are entitled to compensation for time spent undergoing exit security checks that included an inspection of their personal vehicle. In the same decision, the...more

California Supreme Court Rejects PAGA Manageability Argument

Defendants have long argued that Private Attorneys General Act (PAGA) claims can be unwieldy and that courts should strike such claims where individual issues make them unmanageable. In Estrada v. Royalty Carpet Mills, Inc.,...more

What Businesses Should Know About the NLRB’s Broad Standard for Joint Employment Status

On Oct. 26, 2023, the National Labor Relations Board issued a final rule that significantly broadens the definition of “joint employment” under the National Labor Relations Act (NLRA), marking the fifth change to the board’s...more

California Expands Protections for Employees Who Use Recreational Cannabis

Effective Jan. 1, 2024, California employers may not inquire about employees’ prior use of cannabis, even if the employer learns of that prior use from an employee’s criminal history. On Oct. 7, 2023, Gov. Gavin Newsom...more

Employer Alert: Resolution of AI-Focused Writers’ Strike Sets Precedent in Hollywood and Beyond

After 148 days, the Writers Guild of America (WGA) resolved its strike against several major Hollywood studios. As writers leave the picket lines, a new labor agreement will seek to limit the use and training of generative...more

IRS Proposes Prevailing Wage and Apprenticeship Regulations

On Aug. 29, 2023, the U.S. Department of the Treasury and the IRS released comprehensive proposed regulations adding clarity to the prevailing wage and apprenticeship (PWA) prerequisites associated with eligibility for...more

National Labor Relations Board Significantly Alters Union Election Process

On Aug. 24 and 25, 2023, the National Labor Relations Board (NLRB) issued new regulations and a decision, which together overturn decades of precedent and represent a sea change in the union election process. First, the NLRB...more

Employers Beware: AI Tools May Lead to Labor Force Friction and Strikes

According to recent studies, 83% of large employers surveyed rely in some form on artificial intelligence (AI) in employment decision-making, and 86% of employers that use AI admit that it is becoming a mainstream technology...more

Uber’s Challenge to Non-Individual PAGA Standing Crashes at the California Supreme Court

In a significant blow to employment-related arbitration agreements, the California Supreme Court ruled in Adolph v. Uber Technologies, Inc. that an employee has standing to bring non-individual, representative California...more

California Protects Employees Who Use Recreational Cannabis and Limits Drug Tests

Effective Jan. 1, 2024, California law will restrict employers from using traditional drug tests to test for cannabis use. California Gov. Gavin Newsom signed the law on Sept. 18, 2022, prohibiting employers from...more

Finding Irreparable Harm: 5th Circuit Vacates Refusal to Enter Preliminary Injunction

Injunctions are a powerful deterrent against those who seek to misappropriate valuable trade secrets. And without preliminary injunctions — which typically last until the conclusion of a trial — trade secret owners can face...more

Ninth Circuit Holds Federal Arbitration Act Preempts California Law Prohibiting “Forced Arbitration”

On Feb. 15, 2023, the Ninth U.S. Circuit Court of Appeals affirmed a district court’s ruling that the Federal Arbitration Act (FAA) preempts California Assembly Bill 51 (AB 51), which made it a criminal offense for an...more

9th Circuit Rejects Classwide Reprocessing Remedy in ERISA Denial-of-Benefits Claim

On Jan. 26, 2023, a 9th U.S. Circuit Court of Appeals panel issued an opinion in Wit v. United Behavioral Health, rejecting the plaintiffs’ attempt to meet Rule 23 commonality requirements by seeking reprocessing of claims as...more

Employers Face Six-Year Statute of Limitations for Criminal Background Check Claims

On Jan. 12, 2023, the U.S. District Court for the District of New Jersey held in Ramos v. WalMart, Inc. that Pennsylvania plaintiffs have up to six years to file claims against employers for improper use of criminal history...more

New California Employment Laws Take Effect in 2023

California has introduced some significant and widely applicable new employment laws that took effect on Jan. 1, 2023, unless otherwise stated. Minimum Wage Increases - On Jan. 1, 2023, the California state minimum...more

California’s Requirements for Pay Transparency to Increase in 2023

On Sept. 27, 2022, in a continuing effort toward pay equity, California Gov. Gavin Newsom signed Senate Bill 1162, the state’s pay transparency law. S.B. 1162 brings a number of changes employers will need to implement by...more

Divided NLRB Reaffirms Employees’ Right to Wear Union Apparel Absent “Special Circumstances”

On Aug. 29, 2022, the National Labor Relations Board (NLRB) ruled in a 3-2 decision along party lines in Tesla, Inc. , 370 NLRB No. 131 (2022), that an employer cannot impose any restriction on its employees’ right to wear...more

Department of Labor Proposes Rule Granting Government Contractor Employees Right of First Refusal

On July 15, 2022, the U.S. Department of Labor issued a Notice of Proposed Rulemaking (NPRM) that would require successor contractors to offer employees of predecessor contractors the first right of refusal for employment on...more

DOJ and NLRB Announce New Partnership to Enhance Enforcement in Labor Markets

On July 26, 2022, the U.S. Department of Justice (DOJ) Antitrust Division and the National Labor Relations Board (NLRB) signed a joint memorandum of understanding (MOU) with the goal of “promoting the free flow of commerce...more

U.S. Supreme Court: Individual PAGA Claim Must Cruise Into Arbitration

In a significant ruling for California employers, the U.S. Supreme Court on June 15, 2022, held in Viking River Cruises, Inc. v. Moriana, No. 20-1573, that the Federal Arbitration Act (FAA) partially preempts California state...more

California Supreme Court: Meal and Rest Premium Payments Are “Wages”

On May 23, 2022, the California Supreme Court held that premium pay for missed meal and rest breaks pursuant to Cal. Labor Code Section 226.7 are “wages” that must be reported on wage statements per Cal. Lab. Code § 226 and...more

Signed Into Law: Ending Forced Arbitration of Sexual Assault and Sexual Harassment Act

On March 3, President Biden signed into law the Ending Forced Arbitration of Sexual Assault and Sexual Harassment Act. The new law invalidates pre-dispute arbitration agreements and class and collective waivers for sexual...more

California Reinstates COVID-19 Supplemental Paid Sick Leave

On Feb. 9, 2022, California Gov. Gavin Newsom signed into law Senate Bill 114, granting covered employees up to 80 hours of paid sick leave for COVID-19-related reasons (CSPSL). Effective Dates of Application. The new...more

California Supreme Court Clarifies Legal Standard for Statutory Whistleblower Retaliation Claims

On Jan. 27, 2022, the California Supreme Court issued its unanimous decision in Lawson v. PPG Architectural Finishes, Inc., clarifying that whistleblower retaliation claims brought pursuant to Section 1102.5 of the California...more

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