News & Analysis as of

Misclassification California

Thompson Coburn LLP

New California 2026 Minimum Wage Will Also Increase Salary Threshold for Many Exempt Employees

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Starting January 1, 2026, California’s minimum wage for non-exempt employees will increase from $16.50 to $16.90 per hour — a 2.49% increase over 2025 rates.  (Certain industries – fast food and health care – are already...more

Sheppard Mullin Richter & Hampton LLP

California’s 2024-2025 Legislative Session Closes with a Host of New Employment Laws for 2026

The 2024–2025 California legislative session came to an official close at midnight on October 13, 2025, when Governor Newsom’s deadline to sign or veto bills passed by the Legislature expired. Of the approximately 917 bills...more

Morgan Lewis

California Announces 2026 Increase in Computer Professional Exemption Compensation Rate

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California employers must ensure that compensation rates for computer professionals meet new compensation thresholds as of January 1, 2026. Each year, the California Department of Industrial Relations (DIR) sets the...more

Bradley Arant Boult Cummings LLP

Independent Contractors May Not Be the Cheapest Route

For those thinking that classifying workers as independent contractors is a cheaper way of doing business, beware. A California court just ordered a home healthcare business to pay $10 million in restitution and civil...more

Cozen O'Connor

California AG Wins $10M Judgment in Workforce Misclassification Case

Cozen O'Connor on

California AG Rob Bonta secured a $10 million judgment and permanent injunction against Care Specialist HCS Inc. and its former and current owner-operators for illegally misclassifying hundreds of in-home care workers as...more

Jackson Lewis P.C.

Assembly Bill 1340: California Gives Gig Drivers the Right to Organize

Jackson Lewis P.C. on

On October 3, 2025, California’s Governor signed Assembly Bill (AB) 1340 which establishes the Transportation Network Company Drivers Labor Relations Act (Act) which provides drivers for certain gig drivers with the right to...more

Lathrop GPM

[Event] 2025 Employment & Labor Law Seminar - October 29th, San Jose, CA

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Join us for our annual employment law seminar—with a bold refresh—on Wednesday, October 29. Building on the strong foundation laid by Hopkins Carley, this year’s event will feature expanded content, breakout sessions, and a...more

Troutman Pepper Locke

Three of the Oldest Independent Contractor Misclassification Cases Are Coming to an End: August 2025 IC Legal News Update

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This past month, three of the longest-running class actions alleging independent contractor (IC) misclassification are finally ending. In all three cases, the companies, after vigorously defending themselves for close to a...more

Proskauer - California Employment Law

Employer Properly Calculated Sick Leave For Exempt Employee

Hirdman v. Charter Commc’ns, LLC, 113 Cal. App. 5th 376 (2025) - Bradley Hirdman filed a lawsuit against his former employer (Charter Communications, LLC) alleging a violation of the Private Attorneys General Act (PAGA)...more

Lewitt Hackman

Good Faith Requires Action: The New Standard for Employer Defense

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As defense attorneys, we often encounter matters where an employer’s good-faith mistake gives rise to wage and hour litigation. While ignorance of the law generally provides no defense, a good-faith mistake, historically...more

Keating Muething & Klekamp PLL

No Free Delivery: Misclassification Comes at a Price

A recent $24.75 million class action settlement in Lawson v. Grubhub, Inc., marks yet another milestone in the ongoing debate over gig-economy worker classification. This settlement serves as a reminder to companies of all...more

Constangy, Brooks, Smith & Prophete, LLP

California Supreme Court raises bar for employers: “We didn’t know” is no defense

In a unanimous decision that strengthened California’s already robust worker protections laws, the state’s Supreme Court has made it harder for employers to avoid increased damages for minimum wage violations. The ruling in...more

Weintraub Tobin

Wage Compliance Mistakes Could Cost You — Are You at Risk?

Weintraub Tobin on

One of the primary issues employers must navigate is determining how to pay their employees, and that process begins with correctly classifying them. Only a limited number of positions within any company, such as managers,...more

Allen Barron, Inc.

An Experienced Tax Lawyer for a California Business Tax Audit

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Why do you need an experienced tax lawyer for a California business tax audit? What are some of the genuine risks during an audit of your business or professional practice?...more

CDF Labor Law LLP

California Court of Appeal Affirms Definition of Exempt Employee Under Sick Pay Leave

CDF Labor Law LLP on

In a case of statutory interpretation, the California Court of Appeal in Hirdman v. Charter Communications, LLC recently affirmed a win for the employer, holding that outside sales employees can be paid as “exempt employees”...more

Weintraub Tobin

The Term “Exempt Employees” Under the HWHFA Applies to More than “White Collar” Exemptions When Calculating Paid Sick Time

Weintraub Tobin on

In Hirdman v. Charter Communication (8/4/25) 113 Cal.App.5th 376, the Fourth Circuit Court of Appeals was faced with the sole issue of determining the meaning of the phrase “exempt employees” as used in California Labor Code...more

Littler

California Supreme Court Issues Decision on Good-Faith Defense for Minimum Wage Violations and Enforcement of Paid Leave...

Littler on

In Iloff v. LaPaille, the California Supreme Court addressed when “liquidated” or double damages may be avoided by an employer for minimum wage violations and how employees can pursue paid leave claims under California’s...more

Whiteford

Employment Law Update: Danger, Employers, Danger! How Machine Intelligence Is Pushing White-Collar Employees Toward Overtime...

Whiteford on

Artificial intelligence (AI) is rapidly automating the very tasks that once anchored white-collar exemptions under the federal Fair Labor Standards Act (FLSA) and comparable state laws. When algorithms screen résumés, rank...more

Troutman Pepper Locke

Artificial Intelligence Industry Targeted for Independent Contractor Misclassification Lawsuits: May 2025 IC Legal News Update

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Five months ago, we reported about a class action lawsuit against an artificial intelligence (AI) company that engages workers to perform data labeling and content creation and classifies them as independent contractors (ICs)...more

Troutman Pepper Locke

Trump Administration Reissues 2019 Opinion Letter on Independent Contractors and Virtual Marketplace Companies

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The U.S. Department of Labor re-issued an Opinion Letter on the issue of independent contractor (IC) status of an on-demand virtual marketplace company (VMC) that refers end-market consumers to service providers who offer...more

Meyers Nave

10 Things California Non-Profit Employers Need to Know

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1. Non-Profits Are Not Exempt from Employment Laws.Just because your organization is mission-driven doesn’t mean you’re exempt from California’s strict labor laws. Wage and hour rules, discrimination laws, and workplace...more

CDF Labor Law LLP

[Webinar] Wage & Hour Minefield: Top Compliance Risks and Litigation Trends for 2025 - February 26th, 10:00 am - 11:00 am PT

CDF Labor Law LLP on

Wage and hour claims—especially under California’s Private Attorneys General Act (PAGA) and class action lawsuits—continue to rise at an alarming rate. With more PAGA notices filed than ever before and wage and hour class...more

CDF Labor Law LLP

[Webinar] Golden Rules Gone Wrong: Top 10 Compliance Hazards for California Workplaces in 2025 - January 29th, 10:00 am - 11:00 am...

CDF Labor Law LLP on

With employment lawsuits and regulatory scrutiny on the rise, staying ahead of employment law compliance risks is critical. California employers face unique challenges as the Golden State continues to lead the nation in labor...more

Troutman Pepper Locke

Artificial Intelligence Industry Faces Independent Contractor Misclassification Claim: December 2024 IC Legal News Update

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As the business of artificial intelligence is expanding, it seemed it was only a matter of time before the AI industry became the subject of an independent contractor misclassification lawsuit. Last month, one of the leading...more

Buchalter

Beauty is Pain: Lessons and Trends Impacting the Beauty Industry and Employment Law Concerns for 2025 and Beyond

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It was a normal, busy day at Young’s Nail Spa in Temecula, California, when the nail salon was abruptly hit with a $1.2 million fine by the California Labor Commissioner after an investigation found that 36 workers were...more

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