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Snell & Wilmer’s Labor and Employment Law Blog provides breaking news and updates on legal issues facing employers.Topics
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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
Posted in California, Pay
| Tagged California, California Labor Office, California Supreme Court, Construction, Contracts, Labor Code Violation, PAGA, Private Attorney General Act, Rest Break
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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
Posted in California, Independent Contractor, Pay
| Tagged California Supreme Court, Classification, Misclassification
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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
Posted in California, Class Action, Pay
| Tagged Agreement, Arbitration, California Court of Appeal, Employment Arbitration Agreements, Handbook, Policy, Unconscionable, Wage & Hour, Wage Discrimination, Wages
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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
Posted in Discrimination, Pay
| Tagged Diane B. Allen, Equal Pay, Equal Pay Act of 1963, Garden State, New Jersey, Phil Murphy, Sex Discrimination
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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
Posted in Discrimination, Pay
| Tagged Equal Pay, Equal Pay Act of 1963, Ninth Circuit, Salary, Salary History, Wage & Hour, Wage Discrimination, Wage Gap, Wages
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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
Posted in DOL, FLSA, Pay
| Tagged Exempt, Exemption, Justice Thomas, Ninth Circuit, Overtime, SCOTUS, Wages
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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
Posted in FLSA, Pay
| Tagged Automobiles, Exemption, Ninth Circuit, Overtime, SCOTUS, Wages
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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
Posted in California, FLSA, Pay
| Tagged Bonus, California Supreme Court, Classification, Overtime
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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
Posted in California, Pay
| Tagged California Labor Office, Meal Period, On Call, On Duty, Paid Breaks, Rest Break
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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
Posted in Pay, Sick Leave, Texas
| Tagged Austin City Council, Local Ordinances, Local Regulation, Paid Sick Time, Paid Time Off
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