In a pro-employer decision addressing the overlap of federal and California wage and hour law, the California Court of Appeal for the Second Appellate District upheld summary adjudication for the employer, finding that the...more
In September 2021, California’s Governor signed Senate Bill (SB) 62 which expands the definition of the garment manufacturing industry for purposes of wage claim enforcement to include brand guarantors. A brand guarantor is...more
In a less-than-favorable decision for employers – Alvarado v. Dart Container Corporation – the California Supreme Court addressed how to calculate the overtime pay rate when the employee earns a non-production, flat sum bonus...more
California is a difficult landscape for employers, and last month, the California Supreme Court made that landscape all the more difficult. In a case called Alvarado v. Dart Container Corp., the California Supreme Court...more
It is an old joke that the world can be divided into people who are good at math and those who go to law school. Whether you believe the joke or not, math – or in this case, simple arithmetic – can be at the heart of many...more
This month’s two key California employment law cases are both significant decisions involving wage and hour laws. Alvarado v. DART Container Corp. of Cal., 4 Cal. 5th 542 (2018) - Summary: California formula for...more
California businesses must follow a different standard than that allowed under the federal rules when calculating overtime to address flat sum bonuses. ...more
For decades, many employers across California relied upon established federal law governing the calculation of overtime compensation on bonuses. Under federal law, the same set of rules apply to flat sum bonuses (i.e., set...more
In Alvarado v. Dart Container Corporation of California, the California Supreme Court clarified how a flat sum bonus – a bonus that is independent of the number of hours worked by an employee – must be enhanced to comply with...more
Failing to comply with last week’s California Supreme Court order concerning overtime pay and lump sum bonuses may expose you to costly class actions like so many other California employers....more
• In Alvarado v. Dart Container Corp. of California, the California Supreme Court held that California law—unlike federal law—requires employers to calculate overtime by treating flat-sum bonuses as if they were earned during...more
In a unanimous decision, the California Supreme Court today issued a ruling that will have far-reaching effects for employers who pay employees a flat rate bonus and overtime. Specifically, the court ruled that when...more
Seyfarth Synopsis: California employers must use the formula prescribed by the Division of Labor Standards Enforcement Manual to calculate overtime on flat sum bonuses, not the bonus overtime formula used under federal law....more
Seyfarth Synopsis In A Second: A California employer can use the federal formula for calculating overtime on a flat sum bonus, even though the California Division of Labor Standards Enforcement Manual states otherwise....more
A California court of appeal has addressed a gap in California law to clarify what can be a tricky problem for employers — how to calculate overtime on bonuses of a fixed amount, or “flat sum” bonuses. The court’s answer can...more