The California Legislature recently passed AB 1461 which, if signed into law, would require all food-handling employees of food facilities that provide meal subscription plans to obtain food handler cards in accordance with existing requirements. All for-profit food facilities that offer meal subscription plans would be subject to the new law.
Articles Discussing General Workplace Issues in California.
Employees in California? If so, these are the Employment Bills to Watch
With the flurry of action by California lawmakers in the final weeks of the legislative session, there are approximately 640 bills waiting for action by California Governor, Jerry Brown. Here is a list of legislation which California employers should be watching.
California Countdown: Which Labor & Employment Bills Will the Governor Sign?
September 15 was the last day in 2017 for bills to pass both houses of the California Legislature and be forwarded to the governor. Governor Jerry Brown (D) has until October 15, 2017 to sign, veto, or otherwise not act upon these bills. Those bills that become law will take effect on January 1, 2018 unless a bill specifies an earlier or a later effective date. Included on the list of bills on the governor’s desk are numerous labor and employment items that could impact private employer operations. Below we briefly identify and summarize the more notable measures, and flag other bills employers were watching that did not progress – this round – but which could again be taken up when the legislature reconvenes on January 3, 2018.
California Legislative Wrap Up: Employment Bills Headed to the Governor
September 15, 2017 was the last day for the California Legislature to pass bills and send them to the Governor for approval. This post contains the list of key labor and employment bills that passed and will either be vetoed or signed into law by the Governor.
Statutory Wage and Hour Claims May Be Compelled to Arbitration Under CBA
Last week, a California Court of Appeal held that a unionized employee’s statutory wage and hour claims (meal and rest breaks, overtime) had to be arbitrated pursuant to the grievance-arbitration provisions of the applicable collective bargaining agreement (CBA). The employee had filed claims in court on behalf of a class of similarly situated employees alleging meal and rest break violations, overtime violations, and failure to timely pay wages on termination of employment. The employer moved to compel arbitration pursuant to an arbitration provision in its collective bargaining agreement with the employee’s union. The employee argued that the CBA’s arbitration provision did not apply to his statutory wage and hour claims.
California Court Orders Arbitration of Administrative Wage Claim
This week, a California Court of Appeal confirmed that employment arbitration agreements require arbitration not only of employment claims filed in court but also of administrative wage claims filed before the Department of Labor Standards Enforcement (“DLSE”). Employers may recall that in 2013, the California Supreme Court held (after effectively being directed to do so by the U.S. Supreme Court) in Sonic-Calabasas v. Moreno that there is no blanket exemption for wage claims from an otherwise enforceable arbitration agreement, and that employees are not necessarily entitled to have their wage claims adjudicated in an administrative hearing (known as a “Berman hearing”) before the DLSE. However, the California Supreme Court left some wiggle room in its opinion by qualifying it to say that if an arbitration agreement provides an “affordable and accessible” alternative forum for resolution of the wage claim, then the agreement is enforceable and applies to require the wage claim to be arbitrated. Because of this wiggle room, lawyers continue to litigate the issue of whether administrative wage claims are subject to arbitration. In Oto, LLC v. Kho, the court held that the answer is yes.
Think Twice Before Firing an Employee for Political Reasons
There has been a lot of media attention recently over companies firing employees based on their political views and activities, or otherwise making known to employees that company leadership is of a particular political mindset and that contrary beliefs are not welcome. Based on these publicized stories, there may be a growing tendency for other companies to want to “jump on the bandwagon” and take similar action to distance themselves from employees with unpopular or extreme political views. If you are a California employer, that is not a great idea.
San Francisco Enacts Local Lactation Accommodation Ordinance
Over the last several years, San Francisco has enacted a number of local ordinances imposing new mandates on employers who have employees working in the City. City lawmakers are at it again, this time concerning the issue of lactation accommodation in the workplace. Even though there are already state and federal laws requiring employers to provide lactation accommodations to nursing moms, San Francisco has (unnecessarily) adopted its own local ordinance on the topic.
Under the local ordinance, which takes effect January 1, 2018, private employers who employ workers in the City of San Francisco (including part-time workers) are required to provide a reasonable amount of break time to any such worker for the purpose of expressing breast milk for the employee’s child. The break time will run concurrently with any paid rest break time already required to be provided to the employee. However, if more break time is required for purposes of expressing milk, such break time may be unpaid.
Emeryville, California Adopts Rules Implementing Its Minimum Wage, Paid Sick Leave, and Hospitality Service Charge Ordinance
A little over two years after Emeryville, California’s Minimum Wage, Paid Sick Leave, and Other Employment Standards Ordinance took effect on July 2, 2015, the City Manager adopted implementing regulations. In many respects, the regulations codify positions the City historically took in its frequently asked questions (FAQ). For example, all hospitality service charge-related regulations were previously included in the FAQ. However, some regulations clarify or expand the ordinance’s requirements.
Employers Lawfully May Prohibit Employees From Earning Vacation During Their First Year of Employment
California has a unique law regarding vacation benefits. Unlike the laws of many other states, California law requires an employee to be paid for all earned but unused vacation benefits at the time of termination of employment. California law thus prohibits “use it or lose it” policies and policies that otherwise provide for forfeiture of earned vacation benefits. That said, California law does not require employers to provide paid vacation benefits to employees, and employers generally are permitted to decide whether to provide paid vacation, how much to provide, and which employee classifications will be eligible for the benefit. Employers may impose reasonable “caps” on the maximum carryover and accrual of vacation benefits and may control the scheduling of vacations. Employers may also choose to pay out accrued, unused vacation benefits at the end of each year in lieu of allowing carryover of unused benefits. As long as an employer provides clear written notice of its vacation policy terms and conditions to employees, those terms generally will be enforced – as long as they do not provide for a forfeiture of earned vacation. This sounds simple enough, but sloppy drafting of a policy can lead to a claim that a policy operates to cause an illegal forfeiture of vacation benefits.
California Supreme Court Clarifies Discovery under PAGA
Emphasizing the broad right of discovery and the remedial nature of the California Private Attorneys General Act of 2004, the California Supreme Court has ruled that, in pretrial discovery, plaintiffs under PAGA has a right to employer records containing other employees’ names and contact information. Williams v. Marshalls of California, LLC, No. S227228 (July 13, 2017).
California Court Certifies FCRA Class of Over Forty Thousand Applicants
As Littler has reported, the number of class action lawsuits against employers alleging violations of the Fair Credit Reporting Act (FCRA) has continued to spike. Most lawsuits proceed in federal court, but the FCRA allows plaintiffs to file in either federal or state court. On July 13, 2017, a class action was certified in state court in Los Angeles. The suit alleges violations of the FCRA’s disclosure and notice provisions. The state court judge did not decide any issues of liability, but rather that those questions can be decided in one proceeding on behalf of the class members. The court’s opinion serves as another reminder of the importance of vigilance with regard to FCRA compliance.
Endless Summer: California Municipalities Continue to Enact A Variety of Employment Laws
Beyond the labor and employment developments taking place at the state level in California, employers must keep an eye on breaking news at the local level as well.1 In recent years, municipalities up and down the coast have passed ordinances affecting employers, such as wage increases and scheduling ordinances. This article highlights some of the gnarliest laws that have been enacted, or are currently in the pipeline, in several major California cities.
Employment Law Goes Local – California Municipalities Regulate the Hiring and Scheduling of Workers
As workplace regulations spread among California cities, employers confront a tangled web of local rules – particularly those companies with operations in multiple locations. Addressing this compliance challenge with practical suggestions, Corinn Jackson with Littler’s Workplace Policy Institute (WPI) and Sacramento Shareholder Bruce Sarchet, also a member of the WPI team explore new regulations in Emeryville, San Jose, and San Francisco that mandate advance notice of work schedules and require offering additional work hours to part-time employees before hiring from the outside. Corinn and Bruce encourage employers to carefully evaluate whether the laws apply to their operations and, if so, provide training and guidance to supervisors and managers who will need to implement the requirements. Additionally, Bruce and Corinn note that ongoing monitoring of compliance will be critical, along with legal consultation.
Are You Ready for Important California and City of Los Angeles Regulations Effective July 1, 2017?
Both California and the City of Los Angeles have enacted regulations effective July 1, 2017 governing employer use of applicant and employee criminal history in making employment decisions. Below we summarize these upcoming changes as well as the City of San Francisco’s ordinance already in effect.