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Federal Contractor Minimum Wage Increase

The minimum wage for federal contractors may increase to $15.00 on January 30, 2022, up from the current minimum wage of $10.95. President Biden issued Executive Order 14026, which seeks to increase the minimum hourly wage by $4.05 for all federal contractor employees. If implemented: On January 30, 2022, all federal agencies must incorporate the […]

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California Supreme Court Rules That Dynamex ABC Test Applies Retroactively

On January 14, 2021, the California Supreme Court ruled in Vazquez et al. v. Jan-Pro Franchising International, Case no. S258191, that the Dynamex ABC Test, which makes it harder for companies to classify workers as independent contractors, applies retroactively, thus making businesses potentially liable for lawsuits filed years before the ABC Test existed. Click here to […]

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PB

AZ Minimum Wage Increase – January 1, 2020

Arizona’s minimum wage is set to increase to $12.00 on January 1, 2020. The $1.00 increase is the largest jump under the schedule listed in A.R.S. § 23-363 pursuant to Proposition 206. On November 8, 2016, Arizona voters approved Proposition 206, referred to as the Fair Wages and Healthy Families Act (the “Act”).  The Act […]

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Dynamex Impact on California Businesses – Revisiting Dynamex One Year Later

It has been more than a year since the California Supreme Court issued its landmark decision in Dynamex Operations West, Inc. v. Superior Court of Los Angeles, setting forth a new test for determining whether a worker is properly classified as an independent contractor for wage order claims. As many commentators explained, the court significantly changed the […]

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AM
Former Associate

Can California Payroll Companies Be Held Liable for Wage Statement Claims?

California law provides that a payroll service provider cannot be held liable for labor code violations –  but, a California appeals court recently held that employees may pursue tort claims against payroll service providers under a theory that the payroll service provider is a third-party beneficiary of the employer’s contract with the employee. On December […]

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AM
Former Associate

Department of Labor Changes Course and Ends “80/20 Rule” for Tipped Employees

This month, the Department of Labor’s Wage and Hour Division (“Division”) issued an opinion letter that, once again, reversed the Division’s position as to which service industry employees may be subject to the “tip credit.” For those who do not know, the tip credit permits an employer to pay its tipped employees not less than […]

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Every Minute Counts: Supreme Court Rules Employers Cannot “Skim” Minutes

On Thursday, the California Supreme Court held the federal Fair Labor Standards Act de minimis rule, which limits suits over small increments of unpaid time upon a showing that the bits of time are administratively difficult to record, does not apply to California wage order claims. Limiting its holding to the facts of the case, […]

AM
Former Associate

Arbitration Agreement Contained in Employee Handbook and Signed During Pending Class Action Is Invalid

On April 20, 2018, the California Court of Appeal, in the case Nguyen v. Inter-Coast International Training, Inc., held that an arbitration agreement contained in an employee handbook was both procedurally and substantively unconscionable. In that case, after a wage and hour class action was filed and certified against the employer, the employer modified its […]

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Employers Cannot Use Salary History to Defend Against Equal Pay Claims

On April 9, 2018, the Ninth Circuit ruled en banc that an employee’s prior salary does not constitute a “factor other than sex” to justify wage disparities between male and female employees. “Other than sex” factors is limited to legitimate, job-related factors, including the candidate’s experience, educational background, ability, or prior job performance. The court […]

AM
Former Associate

Legal Alert: U.S. Supreme Court Adopts a “Fair Reading” Standard for FLSA Exemptions

In this week’s L&E Legal Alert, Jennifer Yee and Josh Woodard take a deeper dive into the Encino Motorcars, LLC v. Navarro where the U.S. Supreme Court rejected  the longstanding principle that courts construe FLSA exemptions narrowly and, instead, adopted a “fair reading” standard. For more information, see here.

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