California Business and Professions Code section 16600 invalidates any contract restraining anyone from engaging in a lawful profession, trade, or business. While this language has been understood to prohibit non-compete agreements, it was generally understood that it still permitted employee “non-solicitation agreements,” which are agreements preventing former employees from poaching employees from their former employers. … Continue Reading
Almost six months ago, the California Supreme Court issued its decision in Dynamex, which dramatically altered the landscape pertaining to the classification of California workers as either employees or independent contractors. This past Monday, the California Court of Appeal issued one of the first decisions interpreting that seminal case. In Dynamex, the California Supreme Court … Continue Reading
In Connor v. First Student, Inc., the California Supreme Court resolved a conflict in Court of Appeal decisions relating to the constitutionality of California’s background check laws. Employers frequently request background information from job applicants. California has two primary laws regulating the collection and distribution of this background information: the Investigative Consumer Reporting Agencies Act … Continue Reading
Continuing its aggressive enforcement of California wage and hour laws, the Labor Commission issued wage theft citations of $1.9 million to Fullerton Pacific Interiors, Inc. for failing to pay minimum wage and overtime and failing to provide rest periods to 472 workers on 26 construction projects throughout Southern California. Fullerton Pacific Interiors provided drywall work … Continue Reading
In Troester v. Starbucks Corp., the California Supreme Court determined that the federal de minimis doctrine does not apply to California wage claims. While this ruling does not completely eviscerate this legal defense for California employers, it places a very high burden on employers who are brave enough to raise this defense in California courts. … Continue Reading
On July 9, 2018, California Governor Jerry Brown signed Assembly Bill 2770. This bill extends privileged communication status to certain communications by employees and employers regarding alleged sexual harassment and continues California’s efforts to address claims of sexual harassment in the workplace. Prior to AB 2770, California law protected as privileged an employer’s responses to … Continue Reading
On July 5, 2018, a federal judge in the Eastern District of California granted the U.S. Department of Justice’s (“DOJ”) request to temporarily prevent the state of California from enforcing key provisions of AB 450, one of three “sanctuary” laws that Governor Jerry Brown signed into law on October 5, 2017, and which took effect … Continue Reading
On June 28, 2018, the Idaho Supreme Court issued an opinion in a case entitled Lunneborg v. My Fun Life that outlines how cause will be defined in employment cases. Simply put, this case could be a real game changer for employers and particularly those that have employment agreements with senior management or other executives. … Continue Reading
The 2017 Oregon legislature passed a “secure scheduling” or “fair work week” law that imposes significant requirements on certain categories of large employers. The law, available here, goes into effect July 1, 2018. We previously blogged about the law here. Are You a Covered Employer? The law applies to retail, hospitality, and food services employers … Continue Reading
In yet another blow to agricultural employers, grab your stopwatches. In Carranza v. Dovex Fruit Co., the Washington Supreme Court has just held that agricultural employers are required to compensate piece-rate workers on a separate hourly basis for time spent performing tasks outside the specific scope of the piece-rate work. In a narrow 5-4 majority, … Continue Reading
In Dynamex Operations West, Inc. v. Lee, the California Supreme Court created a new employee-friendly test for determining whether workers are properly classified as employees or independent contractors. While providing a level of certainty lacking in the prior standard, the Court’s new test significantly increases the burden on California employers in demonstrating that their workers … Continue Reading
No man’s life, liberty or property are safe while the legislature is in session. · Judge Gideon J. Tucker In the recently concluded session, Washington legislators enacted numerous laws that will adversely affect employers of all sizes across the State. With so many changes, it is key that employers stay up to date and understand … Continue Reading
In Alvarado v. Dart Container Corporation of California, the California Supreme Court determined how employers must calculate an employee’s overtime pay rate when the employee earns a bonus during a single pay period. While the holding was fairly fact specific, it is a reminder on an often ignored (but critical) issue in California employment law: … Continue Reading
In the face of a continuing wave of highly publicized complaints of sexual misconduct in the workplace, California state senator Connie M. Leyva introduced Senate Bill 820. If passed, this law would prohibit the inclusion of nondisclosure terms in settlement agreements relating to actions alleging claims of sexual harassment or discrimination in the workplace.… Continue Reading
On October 12, 2017, California Governor Jerry Brown signed several bills regulating a wide range of employer actions, everything from the labeling of cleaning fluids to the employment application process. While compliance with all of these new laws is important, four are of particular importance as they directly impact the information employers can seek from … Continue Reading
The Washington Supreme Court case Brady v. Autozone recently addressed the standards that apply when a non-exempt employee alleges that an employer did not provide meal breaks. In short: it is now clear that if a lawsuit is brought, employers are likely to bear the burden to show that break laws have not been violated.[1] … Continue Reading
An employer who unfairly and inaccurately is slammed by a former employee (or maybe even a current employee!) on a job-posting or employer-rating website will often look to its lawyer for help. Surely the law protects against outrageous false statements that harm the employer’s ability to recruit new talent? Maybe not—and if there is, it … Continue Reading
Oregon recently passed amendments to its statewide sick time law, clearing up several areas of uncertainty for employers. The amendments clarify that: Employers may cap employees’ annual accrual of sick leave at 40 hours. The pre-amendment version of the sick leave law stated that employees had the right to “earn and use up to 40 … Continue Reading
Oregon is poised to become the first state to enact a “secure scheduling” or “fair work week” law that will impose significant new employee scheduling requirements on certain categories of large employers. Senate Bill 828, which will set new scheduling standards for employers with 500 or more employees worldwide in the retail, hospitality, or food … Continue Reading
Last week, representatives of the business community and employee groups completed negotiations to create a paid family and medical leave insurance program in Washington. Many details need to be worked out, the actual legislation has not yet been drafted, and the Washington Legislature has a number of other issues demanding its attention. Nonetheless, there are substantial … Continue Reading
“Equal pay for equal work.” Everyone – employees and employers alike – can agree that no workers should be paid less than others simply because of their gender, race, veteran status, or any other protected characteristic. But the reality of the pay gap is more complicated. Employers make salary decisions based on a number of … Continue Reading
Although federal contractors were able to breathe a sigh of relief after the current administration put a stop to President Obama’s “Blacklisting” executive order, employers in the state of Washington must now comply with their own “blacklisting” law. On May 8, Washington state signed into law Senate Bill 5301 (“SB 5301”), which bans employers from … Continue Reading
In Mendoza v. Nordstrom, the California Supreme Court answered three questions from the Ninth Circuit concerning California’s “day of rest” statutes. The Court’s decision clarifies a significant ambiguity for employers regarding the obligation to provide employees with their statutorily mandated day of rest. Mendoza involved a putative class action filed by former Nordstrom employees alleging … Continue Reading
We are confident that employers already take employee reports of potentially unlawful activity seriously. Such internal reports can help employers investigate and eliminate unlawful conduct in the workplace. The Ninth Circuit Court of Appeals recently held that retaliating against an employee for making an internal report of potentially unlawful activity—not a report to an external … Continue Reading
