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San Diego City Council Amends Local Sick Pay Law

On July 26, the San Diego City Council ratified a minimum wage and sick pay ordinance approved by voters on June 7. Effective as of July 11, the ordinance imposes a citywide minimum wage rate and also obligates businesses to provide sick pay benefits to employees. As amended, the ordinance will allow employers to front load an annual sick pay allotment and also place a cap on accrual. Employers with workforces in San Diego will want to immediately update their pay practices and sick pay policies.

A Bump in the Road for California’s Piece Rate Employers

On Monday, July 25, 2016, the Fresno County Superior Court denied a request to postpone the deadline for qualified employers to notify the Department of Industrial Relations (DIR) of their election to participate in the affirmative defense, also known as the “safe harbor” provision, set forth in Labor Code §226.2. The request would have also extended the December 15, 2016 deadline to make back payments to current and former employees for rest and recovery periods and nonproductive time.

California Legislative Update: Heading Into The 2016 Session's Final Month

The California Legislature will return from its July recess on August 1, and will devote that month to final consideration of legislation for 2016.

California Supreme Court: Arbitrator Decides Whether Class Claims Are Permissible

There has been much litigation over the issue of whether an employment arbitration agreement validly may include a provision requiring the employee to waive class claims. It is well-established now that these waivers are, in fact, valid. However, not all agreements contain language explicitly stating that the employee is permitted to bring claims on a class basis. Where the agreement is silent on the issue, it becomes an issue of contract interpretation but this scenario generally supports a finding that class arbitration is impermissible because the parties did not clearly agree to it. Nonetheless, this does not stop plaintiffs’ lawyers from bringing class claims, typically in court.

DFEH Now Authorized To File Civil Suits On Behalf Of Victims Of Human Trafficking

On July 7, 2016, Assembly Bill No. 1684 (“AB1684”)[1], introduced in support California’s anti- human trafficking laws, passed both the Senate and the House of Representatives and was ordered enrolled.

Department of Justice, California Employer Reach Non-Prosecution Agreement over Potential Criminal Violations of Immigration Laws

Gridley, California-based natural food company Mary’s Gone Crackers Inc. agreed and consented to payment of $1.5 million and establishment of a corporate compliance program under a non-prosecution agreement reached with the U.S. Attorney’s Office for the Eastern District of California on July 19, 2016. The agreement requires the company to establish a corporate compliance program covering its I-9 procedures and its E-verify system, in addition to requiring complete disclosure of immigration violations within 24 hours of discovery.

HOT WAGE-HOUR ISSUES: THE SALARY BASIS TEST AND THE “REGULAR RATE” OF PAY

Employers face a host of challenges to properly paying employees, particularly when it comes to overtime. When employees are properly classified as “exempt” from the overtime rules, an employer need not worry about these issues. But, the penalties for misclassification can be significant.

California Public Works Contractors Will Be Required to Submit Payroll Records Electronically Starting August 1

The California Department of Industrial Relations (DIR) announced this week that the requirement for public works contractors and subcontractors to submit certified payroll records (CPRs) electronically using the DIR’s electronic certified payroll reporting (eCPR) system will resume on August 1, 2016.

Employers Subject to California Prevailing Wage Beware! California Will Resume Enforcement of The Requirement To Electronically Submit Certified Payroll Records

On July 20, 2016, California Department of Industrial Relations (“DIR”) issued a press release stating DIR enforcement of a contractor and subcontractor’s requirement to submit certified payroll records(“CPRs”) using DIR’s online system will resume on August 1. DIR clarified that the requirement to keep CPRs has not changed. Previously, DIR suspended enforcement of filing CPRs electronically because of problems with the system and improvements.

Are My California Pay Stubs Compliant?

Nearly all California employment wage and hour class action lawsuits assert a cause of action under California Labor Code Section 226 as plaintiffs’ attorneys almost always automatically include such cause of action when there are other alleged underlying wage violations, i.e. failure to pay overtime.