On Wednesday, January 20, 2021 at 10:00 AM PT / 1:00 PM ET, join Andrew J. Sommer and Megan S. Shaked for a webinar regarding California Employment Law Update for 2021: New Legal Requirements and Practical Compliance Strategies Every HR Professional and Manager Should Know.
2021 brings significant changes for California employers, from legislation and Cal/OSHA rulemaking associated with COVID-19 prevention to wage and hour developments. This webinar will review compliance obligations for companies doing business in California, as well as discuss the practical impact of these new laws and best practices for avoiding potential employment-related claims.
Participants in this webinar will learn about: Continue reading
By Andrew Sommer, Fred Walter, and Megan Shaked
2020 has been another banner year for California employment laws, with legislation and Cal/OSHA rulemaking associated with COVID-19 prevention and reporting taking center stage. In our annual update of new employment laws impacting California private sector employers, we lead off with California’s COVID-19 related laws, given their far-reaching impact on the state’s workforce during the pandemic as employers continue to implement measures to prevent the spread of COVID-19 in the workplace. We have also addressed other substantive legislative developments, particularly in the areas of wage and hour law and reporting of employee pay data. Unless otherwise indicated, these new laws will take effect on January 1, 2021.
COVID-19 Related Rulemaking and Legislation
Temporary Emergency COVID-19 Prevention Rule Not to be outdone by Virginia OSHA, Oregon OSHA or Michigan OSHA, Cal/OSHA adopted an onerous COVID-19 specific temporary emergency regulation effective November 30, 2020. Below is a detailed summary of how we got here, as well as an outline of what the rule requires.
On November 19, 2020, the California’s Occupational Safety and Health Standards Board (Standards Board) voted unanimously to adopt an Emergency COVID-19 Prevention Rule following a contentious public hearing with over 500 participants in attendance (albeit virtually). The Emergency Rule was then presented to California’s Office of Administrative Law for approval and publication. The Rule brings with it a combination of requirements overlapping with and duplicative of already-existing state and county requirements applicable to employers, as well as a number of new and, in some cases, very burdensome compliance obligations.
The Standards Board’s emergency rulemaking was triggered last May with the submission of a Petition for an emergency rulemaking filed by worker advocacy group WorkSafe and National Lawyers’ Guild, Labor & Employment Committee. The Petition requested the Board amend Title 8 standards to create two new regulations Continue reading
On Wednesday, November 11th at 1:00 PM ET, join Kara M. Maciel and Jordan B. Schwartz for a webinar regarding Wage and Hour Issues During the COVID-19 Pandemic.
While many companies are dealing with the more noticeable effects of the COVID-19 pandemic, wage and hour issues continue to be a concern as they could result in significant financial liability. As a result, it is important to be aware of these new pandemic-related wage and hour issues, including:
- Tricky “off the clock” and other wage payment issues for teleworking employees;
- Whether teleworking employees need to be paid for “commuting” time;
- Whether on-site employees should be paid for health screening time and other safety protocols; and
- Exempt/non-exempt issues resulting from employees performing multiple tasks on emergency bases.
At the same time, there are other important wage and hour issues that have changed significantly in 2020, including the new overtime rule, new classification guidance for independent contractors, and new joint employer guidance under the FLSA.
In this webinar, participants will learn about: Continue reading
Many states are beginning to re-open their economies, and employers are resuming or increasing business operations in some fashion. As employers make this transition, there are several key employment considerations that employers should pay close attention to. Below is an overview of some of the topics employers should carefully analyze when reopening or increasing business operations.
- Exempt and Non-Exempt Employee Classification Issues
As employers begin to ramp up business or begin plans to do so, employers should carefully evaluate whether exempt employees performing a majority of work on non-exempt tasks still meet the administrative exemption Continue reading
On September 10, 2019, the U.S. Department of Labor (DOL) issued a new Opinion Letter providing clarity on the Fair Labor Standards Act’s (FLSA)’s Section 7(i) retail or service establishment overtime pay exemption that commissions on goods or services represent more than half an employee’s compensation for a representative period of not less than one month.
The FLSA Section 7(i) exempts Continue reading
Although summer seems far away, now is the time when most employers begin to prepare for their summer internship programs. Internships are a great way to give college students or new professionals some hands-on experience in your industry. However, one major question that has plagued employers over the past decade is whether an intern must be paid under the Fair Labor Standards Act (“FLSA”) based on the duties he or she performs in the intern role and the structure of internship program.
While some employers offer paid internships, other internships are unpaid or only provide a stipend lower than the minimum wage. Given the recent string of high-profile class action cases brought by unpaid interns, for-profit, private sector employers must be aware of the FLSA’s requirements as it relates to unpaid interns. Specifically, employers need to carefully evaluate whether an intern qualifies as an “unpaid intern” or an “employee” entitled to compensation. Continue reading
The holiday season is here, and employees are looking forward to celebrating with their family and co-workers. However, the office holiday party – an anticipated yearly tradition in many workplaces – has now become a cause for concern for employers, especially amidst the current national conversation about workplace sexual harassment.
What is the result? Many companies are cancelling holiday party plans, or hosting alternative parties with less alcohol and more day light.
There is certainly nothing wrong with hosting a holiday party, and employers should not be discouraged from doing so. Hosting a holiday party for your employees is beneficial, as it helps boost employee morale and demonstrates Continue reading
On May 2, 2017, the U.S. House of Representatives passed the Working Family Flexibility Act of 2017 – a bill that would amend the Fair Labor Standards Act (FLSA) to permit private employees to take paid time off instead of receiving monetary overtime compensation when working more than 40 hours per week. While uncertainty looms over the fate of the bill as it moves to the Senate, if the bill is passed and becomes law, it would be a major amendment to the FLSA.
Private sector employers must be vigilant of this bill as it progresses through Congress and be prepared to implement procedures to offer comp time instead of overtime wages, and establish a system to keep track of the amount of comp time employees accrue. Continue reading
By: Kara M. Maciel and Dan Deacon
On September 20, 2016, business groups and states filed two lawsuits in the U.S. District Court for the Eastern District of Texas challenging President Obama’s new overtime rule that is set to take effect December 1, 2016 . Twenty-one states banded together to challenge the U.S. Department of Labor’s (“DOL”) new overtime exemption rule in States of Nevada et al. v. United States Department of Labor et al, Case No. 1:16-cv-004070., and the U.S. Chamber of Commerce, leading a coalition of 50 national and Texas business groups, filed a similar lawsuit in Plano Chamber of Commerce et al. v. Thomas Perez et al. Case No. 4:16-cv-00732. The two lawsuits argue that DOL unconstitutionally overstepped its authority to establish a federal minimum salary level to qualify for the Fair Labor Standards Act’s (“FLSA”) white collar exemption and violated the Administrative Procedure Act (“APA”).
The New Rule & its Impact on Employers
The long awaited controversial rule was released in May 2016 to the disdain of employers, as we’ve explained in prior blog posts. The most significant change in the final rule is the new $47,476.00 minimum threshold salary required to qualify as an exempt employee, representing more than a 100% increase from the present level and a huge financial undertaking for employers. All employers throughout Continue reading
In response to the final overtime rule, which increases the minimum salary level to qualify for the white collar exemptions under the Fair Labor Standards Act (“FLSA”), employers must begin to evaluate and alter their current employee classifications and pay structures in preparation for the rule’s December 1st effective date. For many employers, it may not be possible to raise every exempt employee’s salary level to the new minimum of $47,476.00, over double the current threshold level of $23,660.00. If employers cannot raise salary levels, exempt employees will have to be reclassified as non-exempt employees entitled to overtime pay. This can be a very challenging situation for employers because many exempt employees are expected, and regularly do, work a certain amount of overtime each week to complete the required responsibilities of their positions. Furthermore, exempt employees are used to being paid on a salary basis with some level of certainty in their take home pay.
To address these issues and create some predictability for both the employer and the employee, one option is to implement a compensation structure that pays certain non-exempt employees an annual salary factoring in a certain amount of overtime. The FLSA permits non-exempt employees to be paid on a salary basis as long as Continue reading