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8 Tips to Give Your Confidentiality Agreements Teeth (In a Post-Non-Compete World)

An employee with access to customer lists and other key business information leaves the company. You want to enforce your confidentiality agreement, but with the recent restrictions on non-competition/non-solicitation...more

85% Discount on PAGA Claims

The PAGA reform caps penalties at 15% or 30% for employers that take “all reasonable steps” to comply with the law. This cap is especially meaningful when plaintiffs demand seven figures for alleged PAGA violations. This...more

PAGA Reform: Everything You Need To Know

The comprehensive reform of California’s Private Attorneys General Act is now the law. The PAGA reform (AB 2288 and SB 92) was a result of an agreement approved by Governor Newsom that removed the vote on the repeal of PAGA...more

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

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

Court Makes it Easier to Sue Under PAGA

In Balderas v. Fresh Start Harvesting, Inc., 101 Cal. App. 5th 533 (2024), the plaintiff sued her former employer on behalf of other employees but not in her individual capacity (that is, she brought only a representative...more

Stock Options are Not Wages Under the California Labor Code

In a win for California employers, the California Court of Appeal held that stock options are not wages. A stock option is a contractual right to buy company stock at a certain price regardless of whether the stock price...more

Doing Business in California: A Guide for Employers - 2024

The allure of doing business in California is undeniable. It is the world’s fifth largest economy (moving toward fourth) and a market of more than 39 million people. For employers, however, California presents unique...more

Mandatory Arbitration Agreements Are Ok

After four long years of litigation, AB 51, intended to prohibit mandatory arbitration agreements, has been permanently enjoined. California companies may rejoice in a rare win allowing enforceable arbitration agreements to...more

California Supreme Court Holds That Trial Courts May Not Strike PAGA Claims on Manageability Grounds

In a blow for employers, the California Supreme Court held that trial courts may not strike PAGA claims on manageability grounds. The Backdrop on PAGA Manageability- PAGA trials are a collection of mini trials, as...more

2024 Handbook Updates: What You Can’t Afford to Miss

Though you may still be on a sugar high from Halloween, the new year is fast approaching, and with it, the onset of several new California employment laws. Employers should prepare now by updating their handbooks for 2024....more

Pay Your Arbitration Fees on Time or Forfeit Arbitration

You’ve taken the right steps. You prepared and rolled out an enforceable arbitration agreement to your employees. Not surprisingly in California, you were sued. The Plaintiff, by force or voluntarily, agreed to arbitrate. You...more

PAGA Dischargeable in Bankruptcy?

Portions of employer liability in California PAGA actions are dischargeable in bankruptcy under a bankruptcy court decision issued this summer. Specifically, employers’ liability for the 25% share of PAGA penalties to be...more

Representative PAGA Claims Survive After Individual Arbitration— Employer-Friendly Viking River Ruling Nullified by California...

The United States Supreme Court in Viking River Cruises, Inc. v. Moriana divided PAGA claims into two buckets: (1) individual PAGA claims; and (2) representative PAGA claims (a claim somewhat akin to a class action). The U.S....more

ALERT: Change In Law – Retaliation Protection Now Given To Employees Complaining Of Known Violations

The New Rule: Employees are given whistleblower protection for lodging complaints of violations already known to the employer. While California courts have already granted employees with broad whistleblower protection for...more

You CAN Be Sued for Sick Pay Violations + Paid Sick Leave Reminders

Yes, you can now be sued for sick pay violations (makes us sick too). In Wood v. Kaiser Foundation Hospitals, the Court analyzed the statutory framework and legislative history of the sick pay statutes and ruled that...more

PAGA: Loss on Individual Wage Claims in Arbitration May Preclude Representative PAGA Claims in Court (Even if Stayed)

Courts are split on whether to stay or dismiss representative PAGA claims after individual PAGA claims are compelled to arbitration. However, assuming the Court stays the representative PAGA claims or even allows the...more

Mark Your Calendars – PAGA Waivers to be Decided by August 7, 2023

The California Supreme Court granted review of Adolph v. Uber Technologies, Inc. (“Adolph”) in July 2022. The case calls into question whether a PAGA representative maintains standing for the representative portion of their...more

Representative PAGA Claims Survive Arbitration Agreements—California Rejects U.S. Supreme Court’s Viking River Holding

The California Court of Appeal dealt another blow to California employers—employees who’s individual PAGA claims are compelled to arbitration now maintain standing to bring their representative PAGA claims in court....more

Wage Statement Violations – Court Recognizes Good-Faith Dispute Defense

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

Sit Down, PAGA

Employers can celebrate a common-sense win for suitable seating PAGA claims—store greeters generally do not need to be provided seating. Last week, a California Superior Court held that even though significant job tasks of...more

No Overtime on Overtime – a Qualified Win for Employers

Employers got a rare win in a regular rate case earlier this month. In Lemm v. Ecolab, Inc., the Second District cemented California’s adoption of the percentage of total earnings bonus exemption to the regular rate for...more

Doing Business in California: A Guide for Employers - 2023

The allure of doing business in California is undeniable. It is the world’s fifth largest economy (moving toward fourth) and a market of more than 39 million people. For employers, however, California presents unique...more

Avoid Holiday Liability – 5 Tips for Employers in December

December has started, and the holiday season is officially here. While you drink your peppermint latte and regret Black-Friday splurges, consider these five tips to avoid commonplace mistakes made by employers in December:...more

Neutral Rounding Policies on Life Support

Leave it to California courts to deliver another setback to employers right before the holidays. Near decade-old rounding rules were just dealt a hearty blow. Employers should immediately reconsider rounding policies....more

The Taxman Cometh: How to Handle an EDD Audit [Click Here if You Received an “Inquiry Regarding Records,” a “Preaudit...

The EDD is aggressively pursuing unemployment tax audits aimed at evaluating potential independent contractor misclassification. Presumably due to the overwhelming financial burden the pandemic imposed, the EDD is pursuing...more

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