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BT Currents - Hot Topics in Employment Law
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15 Aug 2018 Common Sense Prevails in California Wage Victory, Falters in PAGA Action

Section 226 of the California Labor Code requires employers to provide and maintain accurate wage statements, including all applicable pay rates. A plaintiff is “injured” “if the accuracy of any of the items… cannot be reasonably ascertained from the four corners of the wage statement.”   In the recent case Raines v. Coastal Pacific Food Distributors, Inc., an employee sued her employer complaining that she could not readily figure out her overtime wage rate without using a calculator. She also brought a similar PAGA action…

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29 Jun 2018 Round Up: Court Rules Rounding Payroll System Permissible Even When (a slight) Majority of Employees Lose Time

A California state appeals court recently held that two California hospitals’ practice of rounding all employee time punches to the nearest quarter-hour was allowed, even when a majority of employees lost time. California law permits employers to round time entries when the payroll rounding system is neutral on its face “without an eye toward whether the employer or the employee is benefiting from the rounding,” and when it does not “systematically undercompensate employees over time.”   In this case, one hospital’s rounding payroll system subtracted time…

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02 May 2018 California Supreme Court Ruling to Give More Workers Employee Status

On Monday, the California Supreme Court issued an opinion in Dynamex Operations West Inc. v. The Superior Court of Los Angeles County, which reversed nearly three decades of precedent by rejecting the longstanding Borello worker classification test. The opinion effectively expands the number of workers that will be deemed as employees for purposes of California wage orders, ultimately granting such workers benefits, minimum wage, and overtime compensation, as well as rest and meal breaks.   As a result of this decision, California employers will have…

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12 Jan 2018 ICE Raids on 7-Eleven Franchise Stores Result in 21 Arrests

  On January 10, U.S. Immigration and Customs Enforcement (ICE) agents commenced employment audits at nearly 100 7-Eleven franchises across the U.S., signaling the biggest crackdown on suspected illegal workers since President Trump took office. The raids resulted in 21 administrative arrests. Following the raids, ICE Deputy Director Thomas Homan said in a statement: “Today’s actions send a strong message to U.S. businesses that hire and employ an illegal workforce: ICE will enforce the law, and if you are found to be breaking the law,…

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18 Dec 2017 On Second Thought … State Supreme Court Questions Key Noncompete Drafting Strategy

  As I have written here many times, a key dynamic in the drafting and enforcement of noncompete agreements are the distinctions between different states’ laws. Therefore, it is a big deal when a state Supreme Court rules on one of the key issues in the area of noncompete law, as typically happens two to three times per year. The North Dakota Supreme Court recently issued a decision calling into question choice of forum (or venue) clauses as a tool to maximize the enforceability of noncompete agreements….

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06 Oct 2017 R-E-S-P-E-C-T in the Workplace? The EEOC Becomes Trainer-in-Chief

  The EEOC announced this week that it is launching training programs to help employers foster respectful, inclusive work environments.   The EEOC Training Institute is offering to send trainers into your workplace and lead separate modules for supervisors and employees. Supervisor training titled “Leading for Respect” is a four-hour program; the one for all employees, “Respect in the Workplace,” is a three-hour program.   This week’s announcement culminates a long inquiry into workplace harassment. In January 2015, the EEOC formed the Select Task Force…

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29 Sep 2017 California Bill Placing Restrictions on Employer Immigration Worksite Raids Awaits Governor’s Signature

  In the midst of increased immigrant arrests in California, the California Senate recently confirmed the passage of the Immigration Worker Protection Act, or AB 450, which, if signed by Gov. Jerry Brown, will place various immigration worksite inspection restrictions on California employers.   As discussed in this post, the bill prohibits California employers from allowing immigration agents to enter a workplace or view their employee’s employment records without a warrant. The bill also requires employers who provide immigration officials with employee records to notify…

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12 Sep 2017 California Dreaming: Court Upholds Restrictions in Employment Agreement, Bars Use of Confidential Information

  As most multi-state employers already know, California is inimical to employer-employee non-compete agreements; indeed, the state even has a statute saying as much. Consequently, many employers tend to surrender before imposing any restrictions on departing workers in California. But, there’s hope. A recent decision from the U.S. District Court for the Northern District of California (Fidelity Brokerage Services, LLC v. Brett Rocine, Case No. 17-cv-4993-PJH) provides some solace for businesses trying to fend off competition from faithless employees in the Golden State.   The…

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02 Jun 2017 Trump-Era Immigration Worksite Raid Threats May Bring New Requirements for California Employers

  Amidst fears of increased workplace immigration raids during Trump’s presidency, California’s legislature recently introduced a bill that, if passed, would ban employers from providing workplace access to immigration and U.S. Immigration and Customs Enforcement (ICE) officials without a warrant. This bill could have enormous affects for California, where more than 2.6 million undocumented workers reside. Notably, almost one in every 10 California workers is undocumented, and undocumented workers make up almost half of California’s agricultural workforce.   The measure, AB 450, called the Immigrant…

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24 Apr 2017 California Supreme Court Throws Down the Gauntlet on Arbitration Waivers

  The California Supreme Court is no stranger to invalidating mandatory arbitration provisions. Recently, however, the court lay down yet another challenge to the U.S. Supreme Court’s AT&T Mobility LLC v. Concepcion case, holding that an arbitration agreement that waives the right to public injunctive relief is unenforceable under California law.   In the case, McGill v. Citibank, N.A., Sharon McGill alleged that Citbank engaged in illegal and deceptive practices in marketing a credit insurance plan she purchased. She filed a class action suit under…

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