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Even thoughwe are well into 2019, it is important for employers to be aware of andunderstand the importance and ramifications of the changes to California’semployment law landscape, which can affect their day to day operations. Somehighlighted changes in California law are discussed below. The experiencedemployment law attorneys at Gehres Law Group are ready to assist employers innavigating the sometimes confusing and ever-changing employment laws in thisState. Wage LawChangesFirst up is areminder that California’s minimum wage went up to $12.00 per hour foremployers with 26 or more employees, and $11.00 per hour for employers with 25or fewer employees. Minimum wage increases will continue at the rate of$1.00 per hour until January 1, 2022 for larger employers, and January 1, 2023for smaller employers.
Higher rates may be in effect foremployers located in certain cities which have enacted their own minimum wagerates.Exemptionsfor agricultural workers relating to overtime and other working conditions havebeen repealed or changed. Beginning January 1, 2019, agriculturalemployees must receive overtime at one and a half times the employee’s regularrate of pay for all hours worked in excess of nine and a half hours in oneworkday or 55 hours in one work week. The overtime threshold is reducedby one-half hour per day or five hours per week every year until January 1,2022 when the threshold matches the eight hours per day/40 hours per weekrequirements applicable to most other workers. The double-time thresholdwill be set at 12 hours per day beginning January 1, 2022.
The timeline forcompliance is delayed by three years for small employers–those with 25 orfewer employees.The laborcode was also amended to clarify that an employer may ask applicants theirsalary expectations for the position applied for. Drivers nec powermate vl350. The law also authorizesemployers to make compensation decisions based on employees’ current salaries,only if any wage differential is justified by one or more specified factors,including a seniority system or a merit system.
On September 18, 2019, California Governor Gavin Newsom signed into law (A.B. 5 relates to whether workers are employees or independent contractors. With this bill the California Legislature codified the ABC test set forth by the California Supreme Court’s decision in Dynamex Operations West, Inc. Superior Court of Los Angeles, 4 Cal.
5th 903 (2018) and expanded its applicability. It expands the ABC test for independent contractor vs. Employee classification to the California Labor Code and the California Unemployment Insurance Code.A.B. 5 adds section 2750.3 and amends section 3351 to the California Labor Code and amends sections 605.5 and 621 to the California Unemployment Insurance Code.Dynamex and the ABC testFor the last 30 years, California courts have addressed independent contractor v. Employee classification using the test set forth in S.G.
Borello & Sons, Inc. Department of Industrial Relations, 48 Cal. 3d 341 (1989). Under the Borello test, determining whether a worker was an employee or an independent contractor hinged on a number of factors and primarily focused on the alleged employer’s control over the manner and means by which the work is performed. On April 30, 2018, the California Supreme Court decided Dynamex, announcing a significant departure from the Borello test.
The Dynamex decision adopted the so-called 3-part “ABC” test for determining whether an individual is considered an independent contractor or an employee under the wage orders, which govern many aspects of wages and working conditions in covered industries. Under the new 3-part ABC test, a worker is properly considered an independent contractor to whom a wage order does not apply only where the hirer establishes:. The worker is free from the control and direction of the hiring entity in connection with the performance of the work;. The worker performs work that is outside the usual course of the hiring entity’s business; and. The worker is customarily engaged in an independently established trade, occupation, or business.For more background information on the Dynamex decision, please see our.A.B.
5 codifies and expands the Dynamex 3-part ABC test, making it apply not only to claims arising out of the wage orders, but also apply to the California Labor Code and Unemployment Insurance Code. The new law also includes a provision that empowers the California Attorney General and city attorneys of cities with populations greater than 750,000 to seek injunctive relief to prevent the continued misclassification of employees as independent contractors. We are halfway through 2019, and while many employees prepare for summer vacation, California employers in various cities should brace themselves for an additional round of minimum wage increases on July 1, 2019.Another raise, already?As you may, on January 1, 2019, California raised the rate to $12.00 per hour for employers with 26 or more employees, and $11.00 per hour for employers with 25 or fewer employees. And the California minimum wage is set to increase to $15.00 per hour for all employers by January 2023. In the age of smartphones, virtually everyone has a recording device at his or her fingertips—including employees.
This can present challenges in the workplace. For example, smartphones and other technology enable employees to secretly (read: illegally) record business meetings, disciplinary discussions with HR, and interactions with other employees. Not only does this violate privacy rights and trust, it also risks disclosing confidential company or employee information. Fortunately, employers are not without a remedy. Crack adobe after effects cs4. California’s privacy laws offer protection against illegal recordings by employees.
Self Employment Law Changes
In April 2018, an en banc Ninth Circuit held in that an employer cannot justify a wage differential between male and female employees under the Equal Pay Act by relying on prior salary. Before the Ninth Circuit published its decision, though, passed away. On February 25th, the vacated the Ninth Circuit’s decision, reasoning that the appellate court should not have counted Reinhardt’s vote because he passed away before the decision was issued. Instead, the Ninth Circuit should not have released the opinion. 2018 saw some major developments in employment law, particularly in California.
The California Supreme Court embraced the ABC test for independent contractors in Dynamex, and rejected the de minimis doctrine for Labor Code claims in Troester. While 2019 has already brought legislative changes through the #metoo laws effective January 1, attention should also be on cases before the California Supreme Court. These cases may present new challenges for all employers, but particularly for media companies and employers doing business across state lines. The Court’s decisions in these cases have the potential to increase employers’ exposure to liability.
We highlight some such cases here.
As we previously reported this past summer, the New York State Senate and Assembly passed Senate Bill 6549, which amended Section 194 of the New York Labor Law to prohibit wage differentials based on any protected class. As we also reported, the State Senate and Assembly also passed an omnibus bill that overhauled New York’s antidiscrimination laws. Governor Andrew Cuomo signed these bills into law on July 10 and August 12, 2019, respectively.
As a result, several new laws are slated to take effect in October 2019. Originally published in Rockland County Business Journal, August 2019.
As part of the 2016-17 State Budget, New York State Governor Andrew Cuomo signed legislation enacting a statewide $15 minimum wage plan that will increase earnings of an estimated 2.1 million New Yorkers, in all industries across the state. Increases began at the end of 2016, with New York City seeing the fastest rate of increase.
Increases were supposedly calibrated to provide businesses time to adjust. Few employers are satisfied with the timing. Do you know what the minimum wage order means for your business? You’ve been waiting quite a long time for a critical ruling from the 9th Circuit Court of Appeals on the very fabric of the gig economy model – and you’re going to have wait even longer.
The appeals court just announced late last week that the Lawson v. Grubhub case has been put on hold while it waits to hear from the California Supreme Court on whether the new ABC test should be applied retroactively to the case, or whether the appeal would apply the older flexible misclassification test that had been in place at the time the trial took place. After an initial delay, payroll and wage withholdings to fund the Massachusetts paid family and medical leave program are set to begin on October 1. The Massachusetts Paid Family and Medical Leave Act (PFMLA) established a fund that will allow employees in the Commonwealth to begin taking paid leave in 2021 for their own serious health condition or to care for a family member with a serious health condition. Employers will contribute to the state created fund through a contribution of.75% of employee wages up to the social security cap, currently set at $132,900 per individual for 2019.
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