California Construction Industry, Are They The Next Ripe Target For Private Attorney General Act Claims? Hint-The Answer Is Yes.

In January, California ushered in a new law designed to strengthen wage protections for employees who work under private construction contracts. The law makes all “direct contractors” potentially liable for wages incurred by an employee of any subcontractor-at any tier. … Continue reading

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Court Embraces Worker-Friendly Test for Determining Independent Contractor Status Under California Wage Orders, Broadening Definition of “Employee”

On Monday, the California Supreme Court ruled in a unanimous decision to reject 30-year old precedent which focused the inquiry on the amount of control the company exercises over the worker, embracing a new test for determining whether a worker … Continue reading

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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 … Continue reading

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Forget Referring to it as the “Garden State”: New Jersey Just Became the “Equal Pay” State

On April 24, 2018, New Jersey’s Governor, Phil Murphy, signed the Diane B. Allen Equal Pay Act (the “Act”) into law. Recognized as the strongest equal pay law in the United States, the Act amends New Jersey’s Law Against Discrimination … Continue reading

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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, … Continue reading

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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 … Continue reading

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Supreme Court Rejects Principle that FLSA Overtime Exemptions Should Be Construed Narrowly

In a 5-4 opinion issued on April 2nd, the United States Supreme Court held that service advisers at car dealerships are exempt from the overtime pay requirement of the FLSA because they are “salesmn . . . primarily engaged in … Continue reading

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California Supreme Court Deviates From Federal Regulations on Calculating Regular Rate of Pay on Flat Rate Bonuses

Earlier this week the California Supreme Court ruled that when calculating the regular rate of pay for flat rate bonuses an employer must divide the employee’s total pay (including the bonus) by the employee’s total non-overtime hours worked and multiply … Continue reading

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California Employers May Now Be Required to Allow Employees to Leave Premises During Rest Breaks

  Until recently, the California Labor Commissioner’s Office took the position that employers could require employees to stay on the work premises during ten-minute rest breaks, but they were required to let employees leave the premises during 30-minute meal periods. … Continue reading

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Austin Passes Paid Sick Leave Law

Austin, Texas prides itself on being the Live Music Capital of the World.  Companies with employees in Austin should take note that Austin has a new distinction – the first city in Texas to mandate private employers offer paid sick … Continue reading

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