In 2003, the California Supreme Court adopted a stringent test to determine whether an employer had waived its right to compel arbitration of an employee’s claims.  The most critical, and often determinative, factor was “prejudice” to the party resisting arbitration.  In other words, the courts were obligated to determine whether the party resisting arbitration had been prejudiced by the other party’s behavior – typically manifested through inordinate delay or litigation gamesmanship.

The facts in the recent case of Quach v. California Commerce Club, Inc., in which ...

What goes up continues to go up!  As we pointed out here last year, the trend of increasing the minimum wage continues, as follows:

State:

On January 1, 2025, the California state minimum wage, excluding fast food industry employers and certain healthcare facilities, will increase from $16.00 per hour to $16.50 for employers of all sizes, reflecting a 3.1% increase, which is based on the expected rate of inflation.  The state minimum wage also governs the exempt employee threshold salary, which will increase accordingly.  The new minimum salary for employees who otherwise qualify to be ...

California recently enacted a new law which generally prohibits employers from including statements in job advertisements, postings, applications, or other materials that an applicant must have a driver's license.  Effective January 1, 2025, Senate Bill 1100 amends the California Fair Employment and Housing Act (FEHA) to include this prohibition against requiring a driver’s license in employer materials, unless the employer can meet both of two conditions.

Specifically, in order for an employer’s pre-employment materials to include that an applicant must have a ...

After a contentious six-hour meeting, the Los Angeles City Council voted 12-3 in favor of increasing the hourly wage of approximately 23,000 hotel and LAX workers to $30. The $30 minimum wage will go into effect in by July 2028, when the city will host the Summer Olympics.

The $30 minimum wage campaign, also known as the Olympic wage campaign, has been spearheaded by Unite Here Local 11 and the Service Employees International Union. Both unions have been heavily involved with local and statewide lobbying for higher minimum wages in several different industries. Both unions also ...

A new California law will prohibit employers from requiring that an employee take earned vacation before receiving paid family leave (PFL) benefits.  Effective January 1, 2025, Assembly Bill 2123 amends the Unemployment Insurance Code, which previously allowed employers to require employees to exhaust up to two weeks of accrued but unused vacation leave as a condition of an employee’s initial receipt of these benefits.  For any period of disability commencing on or after January 1, 2025, an employer can no longer impose such a condition.

The state provides PFL benefits to eligible ...

Effective January 1, 2025, AB 2299 draws attention to the importance that California places on whistleblower rights by requiring the Labor Commissioner to develop a model list of employees’ rights and responsibilities under California’s whistleblower laws.  Employers must prominently display this model or similar poster in the workplace that will satisfy the preexisting requirement to display a list of employees’ rights and responsibilities under the whistleblower laws.  The posting must also include the Attorney General’s 1-800-9520-5225 whistleblower hotline.  ...

California recently enacted new requirements concerning the notice employers must give their employees regarding workers’ compensation matters.  Effective January 1, 2025, Assembly Bill 1870 amends Labor Code section 3550 to require employers to advise their employees of the right to consult a licensed attorney regarding any worker’s compensation claim who will be paid from an injured employee’s recovery in most instances.

Currently, the California Labor Code requires employers to conspicuously post a notice that includes specific information regarding worker’s ...

Live events are part and parcel of California’s landscape.  From Coachella to county fairs, thousands of workers each year participate in setting up and tearing down the infrastructure at these public event venues.  Widely reported tragedies related to this work in years’ past, combined with the temporary nature of these entertainment events, have prompted the California legislature to promulgate additional protections for this class of workers through the recently enacted Assembly Bill 2738.

Effective immediately, as part of the contract for production of any live event at ...

California has a habit of finding creative ways to protect employees from potential instances of discrimination or retaliation, no matter how remote.  Senate Bill 399, pointedly titled the “California Worker Freedom from Employer Intimidation Act” (“SB 399”), furthers this tradition by prohibiting employers from subjecting an employee to, or threatening an employee with, discharge, discrimination, or retaliation because the employee declines to attend a mandatory employer-sponsored meeting or otherwise refuses to listen to the employer’s communications ...

Governor Newsom recently signed an amendment to the CROWN Act (which stands for “Creating a Respectful and Open World for Natural Hair”) extending the Act’s reach.  Specifically, the amendment, Assembly Bill 1815, makes two key changes.  First, it amends the Unruh Civil Rights Act to now include the CROWN Act.  Second, it amends key definitions in the CROWN Act to eliminate prior ambiguities.

Originally enacted in 2019, the CROWN Act is intended to prevent discrimination based on natural and protective hairstyles associated with race in the workplace and public schools.  ...

Over the last several years, California employers have become increasingly aware of cities and counties enacting workplace requirements on a wide range of issues, including scheduling, lay offs, paid sick leave, minimum wages, and other more industry-specific requirements.  Next year that list is likely to become even more expansive with the addition of laws on discrimination. 

Specifically, effective January 1, 2025, Senate Bill 1340 permits any city, county, or other political subdivision of the state to enforce a local law prohibiting discrimination in employment against ...

Beginning July 23, 2024, California's Indoor Heat Illness Prevention regulations apply to most indoor workplaces.  Among other things, the regulations require that employers implement certain indoor heat illness prevention measures when the indoor temperature reaches certain benchmark levels.  Additionally, employers must develop and implement a written indoor heat illness prevention plan (IHIPP) in the language understood by the majority of workers.

Required heat illness prevention measures must be implemented in most cases when indoor temperatures reach 82°F to ...

The FTC’s effort to implement a nationwide ban on the use of most non-compete agreements has been stalled indefinitely following a recent court ruling by a district court judge in Texas.  Specifically, in Ryan, LLC v. FTC, U.S. District Judge Ada Brown issued a ruling blocking the FTC’s final rule from going into effect, finding that the FTC “lack[ed] statutory authority to promulgate the Non-Compete Rule” and noting that the FTC’s rule was “arbitrary and capricious” as the FTC failed to provide a reasonable explanation to justify the breadth of the rule.

Originally ...

In August 2000, the California Supreme Court handed down a landmark ruling that changed the face of employment arbitration agreements going forward.  That case, known as Armendariz v. Foundation Health Psychcare Services, Inc., clarified the standards of “procedural” and “substantive” unconscionability in these agreements.  While Armendariz is commonly cited for its holdings on these different types of unconscionability, a lesser aspect of the holding, which was largely unremarked upon for nearly 25 years, dealt with the issue of severing unconscionable ...

Arbitration agreements, at their core, are contracts. As with any contract, there must be “mutuality” or, more colloquially, a “meeting of the minds” on what the contract is intended to encompass. For this reason, employment arbitration agreements are typically limited in scope and drafted to cover only claims or causes of action arising from or related to the relationship between the employee and employer.

 A recent case involving the University of Southern California illustrates the importance of careful drafting. An issue in Cook v. University of Southern California

Since its enactment, California courts have universally established the California Code of Civil Procedure section 1281.97 et seq., which governs the timely payment of fees in arbitration, allows no room for error. Within the last two months, the California Court of Appeals issued two competing decisions addressing whether the Federal Arbitration Act (“FAA”) preempts the California Arbitration Act (“CAA”), and by extension the statutory fee payment deadline set forth in section 1281.97.

In this corner, fighting for federal preemption, is Hernandez v. Sohnen ...

        Over the last decade, the use of e-signatures has become the norm for human resources departments when onboarding new employees.  The advent of resources like DocuSign, Taleo, BabooHR, and others have made this process simple, efficient, and very user friendly.  But with these technological advances comes increased scrutiny from California courts – particularly when evaluating electronically signed arbitration agreements.

            Generally, for an e-signed arbitration agreement to be enforced, an employer must demonstrate, beyond a “preponderance of evidence”, that the ...

July 1^st Minimum Wage Increases

Each year on July 1st, a number of local municipalities and the County of Los Angeles raise their hourly minimum wage, based on changes to the consumer price index, and as required by local minimum wage ordinances. In contrast, and as we previously reported here, California customarily issues its annual hourly minimum wage rates each January 1st.

Beginning July 1, 2024, the following increases will apply to employers in the designated areas:

Over the weekend, Governor Newsom signed Senate Bill 1524 into law, an emergency provision clarifying that Senate Bill 478, the “hidden fees” law that went into effect this week, will not apply to restaurants, bar, food concessions, grocery stores, or grocery delivery services in the same way it will apply to businesses in other industries. SB 1524 arose from concern in the restaurant industry regarding the impact SB 478 would have on restaurants following the issuance of guidelines from the California Attorney General Office in May.

As a reminder, SB 478 revises applicable code ...

If you missed our last reminder, there is less than a week for most California employers to finalize and implement Workplace Violence Prevention Plans (“WVPP”) and have their employees trained on the company-specific policies by July 1, 2024.

As part of implementing the Workplace Violence Prevention Plan, an employer’s designated “Crime/Workplace Violence Prevention Coordinator(s)” must physically go through each office or workplace and identify potential areas of concern or improvement and record their efforts in doing so.

Similarly, each Crime/Workplace ...

On March 11, 2024, the U.S. Department of Labor’s (“DOL”) revised independent contractor test took effect, under a Final Rule issued by the Wage and House Division of DOL. The rule for Employee or Independent Contractor Classification under the Fair Labor Standard Act (“FLSA”) was published on January 10, 2024.

The Final Rule applies the following six factors to determine whether an individual is an employee or independent contractor under the FLSA:

(1) opportunity for profit or loss depending on managerial skill;

(2) investments by the worker and the potential ...

On May 31, 2024, Governor Gavin Newsom signed Senate Bill 828, delaying the implementation of the recently passed healthcare minimum wage law, SB 525, by one month, from June 1, 2024 to July 1, 2024.  The applicable law, SB 525, was previously passed by the legislature and signed by Governor Newsom in October 2023.  In recent weeks, it was determined state budgetary concerns have made it practical to delay implementation of SB 525 by another month.  Further, all future increases to minimum wage under SB 525 will occur on July 1st of subsequent years, rather than June 1st.

On May 8, 2024, the California Attorney General’s Office released much needed and highly anticipated guidance on steps companies in California will need to take to ensure compliance with SB 478, California’s prohibition on “drip pricing” set to take effect on July 1, 2024.  These new guidelines are particularly helpful in detailing how companies in the hospitality and restaurant space can avoid running afoul of the new law.

As a reminder, SB 478, sometimes referred to as the “Honest Pricing Law" or the “Hidden Fees Statute”, revises applicable Civil Code provisions ...

As we previously reported, the California Legislature amended several statutes regulating employer workplace safety policies, including existing injury and illness prevention plans, to also include a new, separate requirement for a “Workplace Violence Prevention Plan.” With few exceptions, California employers must have such a plan in place by July 1, 2024. 

Cal/OSHA has promulgated an initial set of standards and a model template for such a plan, which can be found here. These standards must be submitted to the Occupational Safety and Health Standards Board (OSHSB) by no ...

Despite its best efforts, the California Legislature has been unable to substantially curtail the popularity of employment arbitrations in California.  The hostility to employment arbitration remains evident, however, among the California courts.  This is illustrated by the recent decision of the California Court of Appeals in Vazquez v. SaniSure, Inc.

In Vazquez, an employee was initially hired by an employer for almost two years between 2019 and 2021.  During this period of employment, she was required to sign a binding arbitration agreement. The agreement provided that ...

Despite the U.S. Department of Homeland Security issuing a revised version of Form I-9, Employment Eligibility Verification, last year, many employers continue to use an outdated version of the form. The current version of Form I-9 can be found here.  

Employers must use the revised Form I-9 for all new hires, reverifications and rehires. The changes made to the I-9 form include the reduction of length to one page, more clear instructions, and guidance on acceptable receipts and the auto-extension of some documents, as found on the Lists of Acceptable Documents.

An employer that used an ...

Most private employers with at least 100 employees and federal contractors with at least 50 employees are aware of federal job pay data reporting requirements. Specifically, these employers are required to provide to the Equal Employment Opportunity Commission (EEOC) an EEO-1 Component 1 report that provides employee data from the prior year by employee job category, as well as sex and race/ethnicity. However, these employers may not be aware that California has additional pay data annual reporting requirements which exceed those set forth in the EEO-1 Component 1 ...

On March 15, 2024, the newly appointed Fast Food Council (the “Council”) held its first public meeting in the State Building in Oakland.

The Council was created as part of Assembly Bill 1228, the FAST Recovery Act. The Council has the power to establish minimum standards for fast food workers, including standards for working hours, working conditions, and health and safety.

The Council is comprised of eleven members, nine voting members and two non-voting members. The members are: Nick Hardeman (Chair), Michaela Mendelsohn, Anneisha Williams, Joe Johal, SG Ellison, Richard ...

On March 25, 2024, Governor Newsom signed Assembly Bill 610 into law. AB 610 will exempt some businesses from needing to comply with the Fast Recovery Act. The Fast Recovery Act includes an increase in minimum wage for certain fast food establishment employees which will go into effect next week on April 1, 2024.

More specifically, the FAST Recovery Act sets the minimum wage for fast food workers in chains with more than 60 locations across the country at $20/hour. Approximately 500,000 workers will be affected by the wage increase. In addition to the wage increase, the FAST Recovery Act ...

On February 22, 2024, a panel of judges for the United States Court of Appeals for the Ninth Circuit issued an unpublished opinion upholding enforcement of a National Labor Relations Board (“NLRB”) order holding that a restaurant, Grill Concepts Services, Inc. (“Grill Concepts”) violated the National Labor Relations Act by refusing to bargain in good faith with the UNITE HERE Local 11 union. The panel granted NLRB’s petition for enforcement and denied Grill Concepts’ petition for review.

NLRB alleged that Grill Concepts engaged in a course of bad faith conduct between ...

In 2022, Congress enacted the “Ending Forced Arbitration of Sexual Assault and Sexual Harassment Act” (the “Act”) which provides that, at the election of the person alleging conduct constituting a sexual harassment dispute or sexual assault dispute, “no predispute arbitration agreement or predispute joint-action waiver shall be valid or enforceable with respect to a case which is filed under Federal, Tribal, or State law and relates to the sexual assault dispute or the sexual harassment dispute.”  (9 U.S.C. § 402).       

The California Court of Appeals recently ...

The California Court of Appeals recently revisited the issue of the draconian deadline for paying arbitration fees established by California Code of Civil Procedure section 1281.97.  In Suarez v. Superior Court of San Diego County, the new twist that prompted appellate court review was that the 30-day grace period to pay the arbitration fees ended on January 1, 2023.  Because January 1, 2023 was a holiday, the employer argued that the arbitration payment deadline was extended by statute under Code of Civil Procedure sections 12 and 1010.6.

More specifically, and among several ...

Until recently, California courts were split on whether Private Attorneys General Act (“PAGA”) claims could be dismissed for a lack of “manageability” – referring to the practicality of effectively conducting a trial on the issues.  Like class actions, PAGA actions generally purport to represent a significant number of an employer’s current and former employees.  However, there are important distinctions between class and PAGA actions, which caused California’s appellate courts to issue conflicting opinions on how PAGA cases should be adjudicated.  The ...

As part of a focused effort by the California Legislature to protect employees from unenforceable non-compete clauses and agreements and increase fair competition among employers in 2024, Assembly Bill 1076 enacted Business and Professions Code section 16600.1.

In addition to any other Valentine’s Day plans that employers may have, all employers that provided any agreement with an unlawful non-compete clause or otherwise executed an unlawful non-compete agreement with its employees who were employed after January 1, 2022 must provide written notice to each employee or ...

Many California state statutes are applied based on the number of persons employed by an employer employee count.  Unfortunately, there are a number of these laws, including statutes establishing employee leaves of absence requirements, that do not specify which employees must be counted to determine if the law applies to a particular employer.  A recent state guidance regarding the 2023 state pay transparency statute, which requires the inclusion of a pay scale in job postings by employers with at least 15 employees, but which law does not specify who must be included in the count ...

Commencing on June 1, 2024, Senate Bill 525 will raise the minimum wage for covered health care workers at covered health care facilities in California. A “covered health care facility” as further defined by various statutes, is:  a facility or other work site that is part of an integrated health care delivery system; a licensed general acute care hospital; a licensed acute psychiatric hospital; a special hospital; a licensed skilled nursing facility, if owned, operated, or controlled by a hospital or integrated health care delivery system; a patient’s home when health care ...

Effective January 1, 2024, California’s Assembly Bill 647 will expand recall rights for grocery workers when there is a change of control in a grocery establishment.  Prior to AB 647, existing law required an incumbent grocery employer to provide, within 15 days of execution of a transfer document, a list of eligible grocery workers. Successor grocery employers were then required to maintain a preferential hiring list of these eligible grocery workers and hire from that list for 90 days. This law did not apply to grocery stores that had ceased operations for 6 months or more before the ...

As reported here, California recently took steps to provide employers additional tools to combat workplace violence, including requiring a written workplace violence prevention plan, by enacting Senate Bill 553.  Effective January 1, 2025, Senate Bill 428 makes further changes to existing procedures for workplace violence restraining orders, and creates limitations to prevent employers from using such orders to restrict labor-related speech and activities. These changes are codified as section 527.8 of the Code of Civil Procedure.

Employers in California may ask for a court ...

During the height of the COVID-19 pandemic in 2020, California enacted a temporary right to recall for hospitality employees, codified as Labor Code section 2810.8 (see our related post describing the law here). This law covers laid-off employees who were employed for the 6 or more months preceding January 1, 2020, and whose layoff was due to a reason related to the COVID-10 pandemic. The law was scheduled to expire on December 31, 2024.

Covered employers include hotels with fifty or more guest rooms, airport hospitality operations and service providers, certain event centers, and ...

California’s COVID-19 notice requirements under California Labor Code § 6409.6, requiring employer notice to employees of COVID-19 exposures in the workplace, will expire at the end of 2023.

However, although these state notice requirements will expire, under Cal/OSHA’s COVID-19 non-emergency regulations, employers must still notify employees and independent contractors who had a close contact with a COVID-19 case, as well as any employer with an employee who had a close contact, as soon as possible.  Local health department requirements may also apply.

The end of 2023 ...

The California Office of Administrative Law approved the California Civil Rights Council’s proposed amendment to the California Fair Chance Act, effective October 1, 2023. In addition to providing employers with further guidance on how to handle job applicants with a criminal history, the amendment also expands which employers and job applicants fall under the scope of the FCA.

Originally enacted in 2018, the FCA aims to remove unnecessary difficulties for individuals with criminal backgrounds to find employment. Specifically, the FCA prohibits an employer with five or more ...

Under the National Labor Relations Act (NLRA), employees have “the right to self-organization, to form, join, or assist labor organizations, to bargain collectively through representatives of their own choosing, and to engage in other concerted activities for the purpose of collective bargaining or other mutual aid or protection.”  In Stericycle, Inc., 372 NLRB No. 113 (2023), the National Labor Relations Board (NLRB) adopted a new, stricter standard for assessing workplace policies for the purpose of protecting these employee rights.  Under the new standard, a work rule is ...

Earlier this year, the Equal Employment Opportunity Commission (EEOC) and Department of Labor, Wage and Hour Division (WHD) entered into a memorandum of understanding “to maximize and improve the enforcement of” the laws administered by the two agencies.  The purpose of the MOU is to foster better collaboration between the agencies through “information sharing, joint investigations, training, and outreach.”

Taking immediate effect, the organizations have agreed to broader information and data sharing between each other.  Notably, either organization “may share ...

Since 2011, the Wage Theft Prevention Act has required California employers to provide certain written information to new employees at the time of hiring and within seven days of any change. The Labor Commissioner provides a form Notice to Employee Labor Code Section 2810.5 for this purpose. 

Beginning January 1, 2024, Assembly Bill 636 will amend Labor Code 2810.5 to require employers to include in the 2810.5 Notice information regarding any federal or state emergency or disaster declaration issued within 30 days before hire that applies to the county or counties in which the ...

Unfortunately, incidents of workplace violence are taking place with increasing frequency.  In an effort to give employers additional tools to combat these issues, the California Legislature has given us Senate Bill 553.  Effective January 1, 2024, SB 553 amends Code of Civil Procedure section 527.8 to permit any employer that employs someone who has suffered unlawful violence or a credible threat of violence from any individual that can reasonably be construed to be carried out or to have been carried out at the workplace to seek a temporary restraining order on behalf of the employee ...

The California Legislature recently passed Assembly Bill 933, a bill expanding privileged speech to expressly include communications regarding factual information pertaining to incidents of sexual assault, harassment or discrimination.

Currently, California statutes list specific types of oral and written communications that are privileged and therefore cannot be the basis for a claim of defamation against the speaker.  Privileged categories include, among other things, statements made in pursuit of a lawsuit or made in the proper discharge of an official duty.  ...

The National Labor Relations Board recently issued a final rule broadening who may be considered a joint employer of another employer’s employees under the National Labor Relations Act.

Under the former rule, passed in February 2020 during the Trump administration, an entity is considered a joint employer of a separate’s employer’s employees only if the two employers “share or codetermine the employees’ essential terms and conditions of employment, which are exclusively defined as wages, benefits, hours of work, hiring, discharge, discipline, supervision, and ...

        Employee claims of retaliation in the workplace have been on an upward trend since the California Legislature amended Labor Code section 1102.5 to include protections for whistleblower complaints made directly to a person with authority over the complaining employee or to another employee with authority to investigate the claims alleged.  Senate Bill 497, which goes into effect on January 1, 2024, will serve to permit claims for employees alleging retaliation in the workplace under not only Labor Code section 1102.5, but also sections 98.6 (engaging in protected activity related ...

            Over the past few years, this blog has followed the California Legislature’s concerted efforts to vitiate employment arbitrations in the state.  Senate Bill 365 is the next in line.  This bill amends Code of Civil Procedure section 1294(a) to state that, while an aggrieved party may appeal from an order dismissing or denying a petition to compel arbitration, “the perfecting of such an appeal shall not automatically stay any proceedings in the trial court during the pendency of the appeal.” (Emphasis added). 

            Although a small change to a short statute, the effects may be ...

Passed in 2022 and effective January 1, 2024, Assembly Bill 2188 creates Government Code section 12954 to make it unlawful for an employer to discriminate against a person in hiring, termination, or any term or condition of employment, or otherwise penalizing a person, for either:

(1) The person’s use of cannabis off the job and away from the workplace; or

(2) An employer-required drug screening test that has found the person to have nonpsychoactive cannabis metabolites in their urine, hair, blood, urine, or other bodily fluids.

Now Senate Bill 700, which will also become effective ...

On October 8, 2023, California Governor Gavin Newsom signed Senate Bill (“SB”) 476. The law will go into effect on January 1, 2024.

Employees of retail food facilities are already required to obtain a food handler card and maintain that card for the duration of their employment. SB 476 requires employees to compensate the training and food handler examination time as “hours worked” for which the employer would pay. Employers must also reimburse the employee for all costs associated with obtaining a food handler card. Lastly, employers must relieve the employee of all other ...

California Senate Bill (“SB”) 848, which becomes effective on January 1, 2024, entitles employees to five days of leave following a reproductive loss event. SB 848 adds section 12945.6 to the Government Code and applies to employers with five or more employees. Employees are eligible for the leave if they have worked for the employer for at least 30 days before suffering the reproductive loss.

SB 848 defines “reproductive loss event” as “the day or, for a multiple-day event, the final day of a failed adoption, failed surrogacy, miscarriage, stillbirth, or an unsuccessful ...

          The California Legislature has sought in recent years to expand the rights of employees in nearly every facet of business in California.  Employer restrictions on an employee’s ability to work in the same industry after employment ends have been no exception.  As a result of the 2023 legislative term, two bills limiting post-employment restrictions on employees. In addition to Senate Bill 699, which voids noncompete agreements of out-of-state employee seeking work in California, Assembly Bill 1076 was signed into law. 

            AB 1076 amends Business Code Section 16600 and creates ...

Senate Bill 616, which was signed into law by Governor Newsom this month, amends existing law regarding paid sick leave to California employees. 

The Essentials:

Beginning January 1, 2024 –

• The number of paid sick days per year will be increased to 40 hours or 5 days, whichever is greater (increased from 24 hours or 3 days).
• Employers may cap an employee’s use of paid sick leave to 40 hours or 5 days in each year of employment, calendar year, or 12-month period (increased from 24 hours or 3 days).
• Employers may cap paid sick leave carryover accrual at 80 hours or 10 days, whichever is greater ...

After years of debate, and a looming referendum, a compromise between labor and business representatives has resulted in a final law regulating the fast-food industry. On September 28, 2023, California Governor Gavin Newsom signed Assembly Bill (“AB”) 1228 into law. AB 1228 is a compromise version of the Fast Food Accountability and Standards Recovery Act, a law that initially became effective on January 1, 2023, but them became the subject of a referendum which halted enforcement.  Now that AB 1228 has been enacted, the referendum on the Fast Food Accountability and Standards ...

You may have heard the half-serious joke that California acts as its own independent country.  One example of this is California’s strong disfavor of non-compete agreements, which stands in contrast with the rest of the country which permits these agreements to varying degrees.

California has leaned further into its famed independence with the passage of Senate Bill 699, which will go into effect on January 1, 2024.  SB 699 seeks to strengthen California’s existing ban against non-compete agreements set forth in Business and Professions Code section 16600 which simply states ...

What goes up continues to go up!  As we pointed out here last year, the trend of increasing the minimum wage continues, as follows:

State:

On January 1, 2024, the California state minimum wage will increase from $15.50 per hour to $16.00 for employers of all sizes, reflecting a 3.5% increase, which is based on the expected rate of inflation.  The state minimum wage also governs the exempt employee threshold salary, which will increase accordingly.  The new minimum salary for employees who otherwise qualify to be exempt from overtime will be $66,560 annually for employers of all sizes.

On September 11, 2023, industry, government, and union representatives announced that they had reached a deal to remove a California referendum on the Fast Food Accountability and Standards (“FAST”) Recovery Act from the 2024 ballot. The Fast Act has a storied history, commencing with legislation which was scheduled to take effect on January 1, 2023, which prompted a responsive referendum and legal action.    

The compromise bill, Assembly Bill (“AB”) 1228 will increase the minimum wage for fast food workers in the state to $20 an hour in April 2024 if the fast food chain has more ...

With the stated purpose of providing protection to freelance workers who may struggle to receive timely and full payment for their services, the city of Los Angeles has established an ordinance which will require hiring entities to have a written contract with any freelance worker for services valued at $600 or more in a calendar year.  Titled the “Freelance Worker Protections Ordinance”, the legislation establishes specific rights and remedies for freelance workers which could prove costly to uninformed employers. 

As defined by the ordinance, a “hiring entity” is any ...

On July 21, 2023, the United States Court of Appeals for the Ninth Circuit affirmed a district court order denying Domino Pizza’s motion to compel arbitration in a putative class action brought by plaintiff Dominos truck drivers who alleged that Domino’s had violated California labor law.

The decision in Carmona v. Domino’s Pizza, No. 21-55009 involved an analysis of the Federal Arbitration Act. A Ninth Circuit panel had previously affirmed the denial of the motion to compel, but the United States Supreme Court granted certiorari, vacated the panel’s decision and remanded ...

Following the United States Supreme Court’s landmark ruling in Moriana v. Viking River Cruises, California courts were tasked with the open question of whether an “aggrieved” employee whose individual Private Attorneys General Act (PAGA) claims are subject to an arbitration agreement has standing to represent other similarly aggrieved employees in Superior Court.  In Adolph v. Uber Technologies, Inc., the California Supreme Court answered that question in the affirmative; a representative employee’s standing to represent others is not affected by any existing ...

The Court of Appeal of the State of California recently held in Thai v. IBM, A165390, that employers are obligated to reimburse expenses incurred by employees working from home if those expenses are a consequence of the employee’s job duties, even if those expenses were caused by state stay-at-home COVID orders rather than by the employer.

Plaintiff Paul Thai (“Thai”) is a former IBM employee whose regular job duties required internet access, telephone service, a computer, and a headset. On March 19, 2020, California Governor Gavin Newsom signed Executive Order N-33-20 (the ...

On June 29, 2023, the Supreme Court of the United States unanimously held in Groff v. DeJoy, No. 22-174, that Title VII of the Civil Rights Act of 1964 (“Title VII”) requires an employer that denies a religious accommodation to show that the burden of granting an accommodation would result in substantial increased costs that would affect the conduct of the employer’s business.

U.S. Post Office employee Gerald Groff is an Evangelical Christian who believes that Sunday should be devoted to worship and rest.  Groff had been a USPS employee since 2012. At the time he started, the USPS ...

On June 27, 2023, the federal Pregnant Workers Fairness Act (“PWFA”) went into effect.  The law requires employers with 15 or more workers to provide “reasonable accommodations” to a worker’s known limitations related to pregnancy, childbirth, or related medical conditions, unless the accommodation will cause the employer an “undue hardship.”

The PWFA does not replace federal, state, or local laws that are more protective of workers affected by pregnancy, childbirth, or related medical conditions. These laws have been passed in approximately 30 jurisdictions ...

On June 30, 2023, the Federal Trade Commission (“FTC”) announced that it would be publishing a notice of proposed rulemaking on the use of consumer reviews and testimonials.

The proposed rule follows FTC’s November 2022 Advance Notice of Proposed Rulemaking. The FTC voted 3-0 to approve the notice of proposed rulemaking, which will be published in the Federal Register and open to public comment.

Specific practices that would be prohibited under the proposed rule and subject to FTC fines or enforcement action include:

• Selling or Obtaining Fake Consumer Reviews, Consumer ...

On June 1, 2023, a panel of judges for the United States Court of Appeals for the Ninth Circuit held that berry distributors were not liable as “client-employers” of agricultural workers. The plaintiff agricultural workers had been hired by strawberry growers to pick fruit that was then turned over to defendants Red Blossom Sales, Inc. and Better Produce, Inc. for distribution.

In 2018, the strawberry growers stopped paying the plaintiff agricultural workers and filed for bankruptcy. The plaintiffs then sued the distributor defendants as joint employers and client ...

On July 1, 2023, a number of local municipalities and the County of Los Angeles will be raising their hourly minimum wage, based on changes to the consumer price index, and as required by local minimum wage ordinances. Beginning July 1, 2023, the following increases will apply to employers in the designated areas:

In addition, on July 1^, 2023, all businesses in the City of West Hollywood, including smaller businesses and hotel employers, will be required to raise the hourly minimum wage to $19.08.  In the past several years, the City of West Hollywood’s minimum wage and corresponding ...

In a matter of first impression, a panel for the Third U.S. Circuit Court of Appeals recently affirmed a judgment of the District Court of New Jersey in Singh v. Uber Techs., Inc. (April 26, 2023), compelling arbitration in a putative class action against Uber Technology, Inc. (Uber). The class action was brought against Uber by its drivers who alleged that the rideshare company misclassified them as independent contractors, thereby depriving them of overtime pay and other benefits under wage and hour laws. The panel held that the drivers must bring work-related disputes as ...

In law school, aspiring attorneys are taught fundamental concepts related to contracts, including “agency”, “third party beneficiary”, and “equitable estoppel”, terms which relate to determining who should be subject to the terms of a contract.  In Hernandez v. Meridian Management Services, LLC, the California Court of Appeals referred back to these law school basics in denying a motion to compel arbitration brought by a number of companies who were alleged to be “joint employers” of an employee, but who were not signatories to an arbitration agreement between ...

On April 7, 2023, the City of Los Angeles (the “City”) released a revised “LA Al Fresco Ordinance,” to govern outdoor dining.  The City had previously released a February 2023 proposed ordinance that was met with intense opposition from restaurant owners and community members.

“LA Al Fresco” is a popular outdoor dining program that began in May 2020 during the COVID-19 pandemic in an effort to help restaurant owners use more space for outdoor dining without having to go through a prolonged approval process.  Through the program, restaurants and bars could apply to expand ...

Until recently, employers had the luxury of interpreting the outside salesperson exemption to minimum wage, overtime and meal and rest period requirements at face value.  This is because the definition of an “outside salesperson” is simply codified as “any person, 18 years of age or over, who customarily and regularly works more than half the working time away from the employer’s place of business selling tangible or intangible items or obtaining orders or contracts for products, services, or use of facilities.” 

However, in Espinoza v. Warehouse Demo Services, Inc.

In the 2020 general election, Californians passed Proposition 22, which gave ride-sharing and delivery app companies such as Uber, Lyft, and DoorDash the ability to continue classify their drivers as independent contractors.  Shortly after the proposition passed, a group of drivers challenged its constitutionality.  At its core, the issue is whether drivers in the gig economy should be entitled to the benefits typically afforded to employees.  As independent contractors, these workers forgo such benefits in exchange for the right to set their own work schedule and receive ...

Over the last few years, employers throughout the United States have enjoyed some measure of protection from former employees who signed severance agreements.These agreements routinely contained a confidentiality provision that restrains former employees from disclosing the contents of the agreement to third parties other than (1) a spouse; (2) professional advisors for the purposes of obtaining legal counsel or tax advice; or (3) if legally compelled to do so by a court or administrative agency of competent jurisdiction.  These agreements also typically contained a ...

The saga of challenges to mandatory employment arbitration agreements is almost over. After three years of challenges, the United States Chamber of Commerce successfully appealed the enactment and enforcement of California’s Assembly Bill 51 (“AB 51”), which was originally intended to take effect on January 1, 2020. This piece of legislation would have banned the use of mandatory arbitration agreements as a condition of employment, and went so far as to include civil and criminal penalties on employers who violated the statute. 

After a federal district court granted a ...

The 2023 mileage rates used to calculate the deductible costs of operating an automobile for business, charitable, medical, or moving purposes have increased or remained unchanged from mid-year changes in 2022, when rates were last modified. Specifically, as of January 1, 2023, the standard mileage rates for the use of a car (also vans, pickups or panel trucks) are:

• 65.5 cents per mile driven for business use, up three cents from the rate for the latter half of 2022;
• 22 cents per mile driven for medical, or moving purposes for active duty members of the Armed Forces, unchanged from the ...

On January 13, 2023, Sacramento Superior Court Judge Shelleyanne Chang ruled that implementation of the Fast Food Accountability and Standards Recovery Act (“FAST Act”) should remain on hold pending the Secretary of State’s quality control process to review petition signatures.  In so doing, the Court held that “[c]ase law is clear that a qualified referendum pending vote by the people in a general election suspends the effectiveness of a law before it takes effect” and noted that there was no authority to support the Department of Industrial Relation’s position that ...

California retail businesses must prepare to open employee-only restrooms to members of the public to accommodate medical conditions including Crohn’s disease, ulcerative colitis, other inflammatory bowel disease, and irritable bowel syndrome.

On September 30, 2022, California Governor Gavin Newsom signed Assembly Bill 1632 into law. This bill requires a place of business that is open to the general public for the sale of goods and that has a toilet facility for its employees to allow any individual who is lawfully on the premises of that place of business to use that toilet ...

Effective January 1, 2023, AB 2068 provides that employers posting a Cal/OSHA citation, special order or action must post the Cal/OSHA English version of the notice, along with multiple language versions of the notification that Cal/OSHA will have prepared, as applicable to the workplace. 

Cal/OSHA is required to prepare these notifications in English and the top seven non-English languages used by limited-English-proficient adults in California, as determined by the U.S. Census Bureau’s American Community Census, which are currently Spanish, Cantonese, Mandarin ...

On December 30, 2022, Judge Shelleyanne Chang of the Superior Court of Sacramento issued a temporary restraining order to block adoption of the FAST Act, which was due to take effect on January 1. 

The Save Local Restaurants coalition of restaurant industry advocates filed a voter referendum on September 7, 2022 to block the new law, and appear to have gathered enough signatures to put the law on the November 2024 ballot. Despite the referendum, the California Department of Industrial Relations stated on December 27 that it would move forward with implementation of the FAST Act on ...

Beginning July 1, 2023, SB 731 will provide for the automatic sealing of certain felony criminal records.  Arrests that do not result in conviction will also be sealed. This law also permits individuals with violent or serious felony records to petition courts to order their criminal records sealed.  Sealing of these records will make them unavailable to most employers through a background search, although school districts may still access these records for teacher credentialing or employment decisions.

Under SB 731, most defendants convicted of a felony are eligible to have their ...

Faced with the expiration of its COVID-19 Emergency Temporary Standards, Cal/OSHA voted to establish non-emergency standards. Once approved by the Office of Administrative Law, which is expected to take place in January of 2023, the new standards will remain in place for two years and will apply to most workers in California who are not covered by the Aerosol Transmissible Diseases standard. 

The regulations continue several key ETS requirements, including complying with California Department of Public Health rules regarding face coverings, and providing respirators to ...

In response to recent Supreme Court decisions and laws in other states outlawing abortion, California passed a number of new laws designed to protect reproductive rights in the state. These include bills to prohibit a person from being criminally or civilly liable for a pregnancy loss, to prohibit a health care provider from releasing medical information on abortion care in response to out-of-state subpoenas, and to prohibit law enforcement cooperation with out-of-state entities related to a lawful abortion. California voters also approved Proposition 1 in November, which ...

California law already requires hotels to provide training to their staff on how to recognize human trafficking and how to report suspected trafficking to either law enforcement or the National Human Trafficking Hotline. Effective January 1, 2023, Assembly Bill (“AB”) 1788, codified as section 52.65 of the Civil Code, creates new civil liability for hotels for the failure of supervisory employees to report sex trafficking activity. 

Specifically, a hotel is liable under AB 1788 if sex trafficking activity occurred in the hotel and a supervisory employee of the hotel either ...

The United States Equal Employment Opportunity Commission (EEOC) has released an updated “Know Your Rights: Workplace Discrimination is Illegal” poster that must be prominently displayed in the workplace. The poster summarizes various employee and applicant anti-discrimination protections that the EEOC enforces and also provides instructions on filing a workplace discrimination charge with the EEOC which include a QR code for quick digital access.  

The “Know Your Rights: Workplace Discrimination is Illegal” poster is available in English and Spanish:

• Know Your ...

California‘s FAST Recovery Act will likely be placed on hold until November 2024. 

The Save Local Restaurants coalition, a group composed of restaurant industry advocates, filed a voter referendum on September 7, 2022 to block the new law. California’s referendum process provides that opponents have 90 days from the date of a bill’s enactment to qualify a measure for the ballot by collecting enough signatures. Specifically, the group had until December 5, 2022 to submit 623,000 signatures in order for the law to be placed on the ballot.  Save Local Restaurants issued a statement

Governor Newsom signed Assembly Bill 2448 into law, which will enact Civil Code section 51.17. The law requires the Civil Rights Department (formerly the Department of Fair Employment and Housing) to establish a pilot program to recognize businesses that promote or create environments free from discrimination and harassment of customers.  Recognition will come in the form of a certificate the department would issue to qualifying businesses that may be prominently displayed on site. The department would also publish on its internet website a list of businesses receiving the ...

On November 22, 2022, the Los Angeles City Council passed the Fair Work Week ordinance (the “Ordinance”). The Ordinance passed with a 10-0 vote, and will go into effect on April 1, 2023. Covered employers subject to the requirements of the Ordinance are retail businesses with 300 or more employees globally, regardless of how many employees are based in Los Angeles.

The Ordinance requires covered employers to provide employees who work at two hours a week within the City of Los Angeles with written notice of their work schedules at least fourteen calendar days before the start of the ...

Effective January 1, 2023, Senate Bill 1044 will prohibit employers from taking or threatening adverse action against any employee for refusing to report to, or leaving, a workplace or worksite during an “emergency condition” when the employee has a reasonable belief that the workplace or worksite is unsafe.  An “emergency condition” means the existence of either: (1) conditions of disaster or extreme peril to the safety of persons or property at the workplace or worksite caused by natural forces or a criminal act; or (2) an order to evacuate a workplace, a worksite, a ...

What goes up does not come down! The trend of increasing the minimum wage continues in 2023 as follows:

State:

On January 1, 2023, the California state minimum wage will increase to $15.50 per hour for employers of all sizes. The state minimum wage also governs the exempt employee threshold salary, which will increase accordingly.  On January 1, 2023, the new minimum salary for employees who otherwise qualify to be exempt from overtime will be $64,480 annually for employers of all sizes.

Local:

Additionally, several California municipalities will raise their minimum wage rates on July ...

Beginning January 1, 2025, Senate Bill 951 will increase from 60% to a maximum of 90% the percentage of wage replacement based on the individual’s wages earned for persons receiving benefits under the Paid Family Leave (PFL) and State Disability Insurance (SDI) programs for claims filed on or after that date. To pay for this increase in benefits, on January 1, 2024, SB 951 will repeal the wage ceiling for contributions into the SDI fund, thereby making all wages subject to the SDI contribution rate.

Employees can apply for PFL or SDI benefits, as applicable, during an otherwise unpaid ...

Effective January 1, 2023, Senate Bill 1126 expands California’s CalSavers Retirement Savings Program by requiring employers with at least one employee to register for CalSavers by December 31, 2025, if the employer does not sponsor a retirement plan for its employees, or register as exempt if a retirement plan is provided.  Any employer may also choose to have a payroll deposit retirement savings arrangement (such as an IRA) to allow employee participation in the program.  However, SB 1126 excludes from the definition of “eligible employer” any sole proprietorships ...

On September 27, 2022, Governor Newsom signed Senate Bill (SB) 1162, which requires employers with more than 15 employees to post salary scales with every job posting and to disclose the pay scale for a position held by an employee upon request, and expands pay data reporting requirements for employers with 100 or more employees.

The law will go into effect on January 1, 2023.

Pay Scale Disclosure in Job Postings and Upon Request

Under existing California law, which went into effect in January of 2018, employers were required to disclose the pay scale of any open position to any applicant ...

Since its enactment in 2020, employers have been forced to be mindful of the burdensome imposition of Code of Civil Procedure section 1281.97 et seq., which requires an employer to pay the full amount of arbitration fees within 30 days of an arbitrator’s invoice being due, unless the arbitration agreement specifies a different deadline. In a recent opinion titled Espinoza v. Superior Court, the Court of Appeals clarified that this deadline must be strictly followed and there is no leeway for “substantial compliance.” 

In Espinoza, a defendant employer failed to pay the ...

Effective January 1, 2023, under Assembly Bill 1949, which amends the California Family Rights Act (CFRA), California employers with at least five employees must provide up to five days of bereavement leave to an eligible employee upon the death of a family member.  To be eligible for the leave, the employee must have completed at least 30 days’ service prior to the leave.  “Family member” means a spouse or a child, parent, sibling, grandparent, grandchild, domestic partner, or parent-in-law. 

The leave is unpaid, but the employee may elect to use available vacation, personal ...

With the relaxation of some governmental COVID-19 measures, it may appear that employers need no longer be concerned with any of the requirements imposed in the last two years.  On the contrary, the California Legislature has created a number of new COVID-19-related laws that may California Employers: 

• Assembly Bill 152 extends COVID-19 Supplemental Paid Sick Leave (SPSL), which had been set to expire on September 30, 2022, to December 31, 2022. That means that California employers with at least 26 employees must continue to provide, under specified COVID-19-related ...

On September 15, 2022, the Federal Trade Commission (“FTC”) issued a Policy Statement on Enforcement Related to Gig Work (the “Policy Statement”).

The agency’s press release states: “American workers deserve fair, honest, and competitive labor markets. Over the past decade, internet-enabled “gig” companies have grown exponentially, and gig work now composes a significant part of the United States economy. One study suggests the gig economy will generate $455 billion in annual sales by 2023. The rapid growth of the gig economy is made possible by the ...

Assembly Bill 2188 has been sent to Governor Newsom for signature. If signed, AB 2188 will serve to further protect workers who use marijuana when off work from discrimination in the workplace. Specifically, AB 2188 will make it unlawful for an employer to discriminate against a person in hiring, termination, or any term or condition of employment, or otherwise penalizing a person, for either:

(1) The person’s use of cannabis off the job and away from the workplace; or

(2) An employer-required drug screening test that has found the person to have nonpsychoactive cannabis ...

Among other protections and rights, employees are entitled to the use of suitable seats when the “nature of the work reasonably permits the use of seats” pursuant to the Industrial Welfare Commission’s Wage Orders. As recently as 2016, the California Supreme Court detailed a fact-intensive framework and multi-factor test to assist employers with the determination of when the nature of the work permits the use of seats.  However, the question of how to determine whether an employee was in fact “provided” suitable seating by his or her employer remained unresolved.

Employers throughout California have been keenly awaiting the final decision from the 9^th Circuit Court of Appeals regarding the United States Chamber of Commerce’s challenge to California Labor Code section 432.6, which is designed to prohibit employers from enforcing mandatory arbitration agreements or requiring them as a condition of employment.

In our last report, the 9^th Circuit was awaiting the decision from the United States Supreme Court in the Moriana v. Viking River Cruises case, which also addressed the applicability of the Federal Arbitration Act’s ...

As we reported on June 30, 2022, the Los Angeles City Council voted unanimously to adopt a Healthcare Workers Minimum Wage Ordinance, which was designed to increase the minimum wage for workers of private healthcare facilities in Los Angeles to $25.00 per hour (the “ LA Ordinance”). The Ordinance would have gone into effect on August 13, 2022, but for a referendum petition against the ordinance filed on August 10, 2022. Similar ordinances have been passed in Long Beach, Monterey Park, and Downey. Like the LA Ordinance, the ordinance in Downey is also the subject of a referendum.

As a ...

In a move that has hospitality industry leaders expressing concerns about safety and a negative effect on tourism, on August 5, 2022, the Los Angeles City Council considered a proposal that would force hotels to rent vacant rooms to homeless people in exchange for government vouchers.

The ordinance was proposed by UNITE HERE Local 11, a labor union representing workers employed in hotels, restaurants, airports, sports arenas, and convention centers.  The ordinance began as an initiative petition and was secured by enough signatures to require the Council to vote on the measure.  The ...

On July 8, 2022, Mayor Eric Garcetti signed the City’s new Hotel Worker Protection Ordinance (“the Ordinance”) into law. The Ordinance was passed by the City Council on June 28, 2022. It will go into effect 30 days after Mayor Garcetti’s signature, on August 8, 2022.

The Ordinance is similar to hotel ordinances recently passed in Long Beach, Santa Monica, Glendale and West Hollywood, which were also pushed forward and drafted by the Unite Here Local 11 union. As part of an effort to raise its profile and further union organizing efforts, the union drafted the Ordinance as an ...

On June 29, 2022, the Los Angeles City Council voted unanimously to adopt a Healthcare Workers Minimum Wage Ordinance (the “Ordinance”).  This comes after a 10-2 vote on June 21 required a second reading and vote. The Ordinance was initially submitted as an initiative petition to the City Clerk with voter signatures in May 2022.  Under the Ordinance, covered healthcare workers must be paid a minimum wage of $25/hour beginning on the effective date of the Ordinance. On January 1, 2024, the minimum wage will be further increased based on the Consumer Price Index for the Los Angeles ...

Effective July 1, 2022, the mileage rates used to calculate the deductible costs of operating an automobile for business, charitable, medical, or moving purposes will increase. 

In a rare move,  the IRS made this special adjustment for the final months of 2022 in recognition of recent gasoline price increases.  The IRS normally updates the mileage rates once each year in the fall for the next calendar year.  The last time the IRS made such a midyear increase was in 2011. 

Specifically, the new standard mileage rates for the use of a car (also vans, pickups or panel trucks) will be:

• 62.5 cents per ...

On July 1, 2022, a number of local municipalities will be raising their hourly minimum wage, based on changes to the consumer price index, and as required by their minimum wage ordinances. 

Beginning July 1, 2022, the following increases will apply to all employers in the designated areas:

Additionally, on July 1, 2022, businesses in the City of West ...

Private Attorneys General Act (“PAGA”) actions are the proverbial boogeyman to California employers.  On June 15, 2022, the United States Supreme Court reined in some of this statute’s bite by holding that “aggrieved employees” who signed arbitration agreements governed by the Federal Arbitration Act (“FAA”) cannot split their individual claims and their PAGA claims by proceeding with arbitration for the former and a court action for the latter.  An enforceable arbitration agreement will cover all claims, including PAGA claims, raised by the representative ...

On July 1, 2022, the Responsible Beverage Service Training Program Act (Assembly Bill 1221) will go into effect.  This means that Responsible Beverage Service training for alcohol servers and their managers at California Department of Alcoholic Beverage Control (“ABC”) On-Premises licensed establishments will go from being voluntary to mandatory.

AB 1221 was passed in 2017, and required ABC to create a Responsible Beverage Service Training Program (“RBSTP”) to ensure servers of alcoholic beverages and their managers are educated on the dangers of serving alcohol to ...

In the words of Tom Cruise’s character Lt. Daniel Kaffee in A Few Good Men, “the hits keep on coming.” This quote crystallizes how California employers will undoubtedly feel following the California Supreme Court’s ruling in Naranjo v. Spectrum Security Services, Inc., decided on May 23, 2022.

Initially decided by the Second Appellate District in 2019, Naranjo previously stood for the proposition that failure to provide missed meal and rest break premium pay did not entitle employees to pursue waiting time penalties under Labor Code section 203 or paystub violation ...

On May 12, 2022, Governor Gavin Newsom announced that California’s minimum wage is projected to increase to $15.50 per hour for all workers beginning on January 1, 2023. The accelerated increase is required by Section 246 of the California Labor Code, which was enacted in April 2016 through Senate Bill 3. That law provides that the minimum wage will increase according to a specified schedule when inflation exceeds 7 percent. Newsom’s press release states that “[t]he COVID-19 pandemic has resulted in persistent supply chain disruptions and labor market frictions have driven ...

The California Department of Fair Employment and Housing (DFEH) has updated a number of posters and pamphlets that California employers must post or distribute to employees. Employers should take note to use the most recent versions of these required documents.

All California employers are required to display the following poster, which was recently updated:  California Law Prohibits Workplace Discrimination and Harassment (PDF)

Additionally, California employers with at least five employees must display these three other posters, which were also recently updated:

On April 21, 2022, the Cal/OSHA Standards Board (Board) met and formally adopted a third version of the COVID-19 Emergency Temporary Standards (ETS) by a vote of 6-1.  

The new ETS makes a number of changes to prior ETS rules, including: the significance of vaccination status, face-covering standards; testing requirements; cleaning and disinfection requirements; and the guidelines to follow for exclusion from and returning to work criteria.

Vaccination status is no longer an aspect of the ETS, even in the event of a COVID close contact in the workplace. In fact, the definition of ...

On April 21, 2022, the Los Angeles County Department of Public Health issued a Health Officer Order to note that masking in all public transit within LA County and in LA County indoor transportation hubs continues to be required.

Per the revised Order, masking continues to be required to be worn by everyone, 2 years of age and older, regardless of their COVID-19 vaccination status, on public transit within the County. This includes wearing masks on commuter trains, subways, buses, taxis, and ride-shares.

Masking is also required in indoor transportation hubs including airport and bus ...

The Cal/OSHA Standards Board has scheduled a meeting for April 21, 2022, to adopt a third version of the COVID-19 Emergency Temporary Standards (ETS). The proposed changes will serve to modify several portions of the ETS, including: face-covering standards; testing requirements for individuals returning to work after testing positive and not developing any symptoms; employer testing requirements; cleaning and disinfection requirements; and the guidelines to follow for exclusion from and returning to work criteria. If passed, the third readoption would be the final version ...

Since the California Supreme Court’s ruling in Iskanian v. CLS Transportation Los Angeles, LLC in 2014, it has been widely understood that Private Attorneys’ General Act (“PAGA”) actions cannot be subject to employment arbitration agreements. The rationale for this decision has been that PAGA actions are unique in that the employee that brings the claim is not acting in an individual capacity, but rather acts as a representative for the Attorney General on behalf of the State of California.  For that reason, the Federal Arbitration Act (FAA), which would otherwise preempt ...

On March 30, 2022, the Los Angeles City Council voted 13-1 to end the City’s mandate requiring customers to show proof of COVID-19 vaccination to use indoor facilities at restaurants, bars, gyms, personal care establishments, and entertainment facilities. The ordinance passed with an urgency clause, so it will go into effect as soon as it is signed by the mayor.  Individual businesses are still permitted to voluntarily require proof of vaccination if they choose to do so. The SafePassLA program mandating proof of vaccination has been in effect since November 8, 2021. Los Angeles ...

On March 9, 2022, the Los Angeles City Council held a special meeting to discuss amending the City’s proof-of-vaccine requirement. The Council voted to direct the City Attorney to prepare a new ordinance making the verification of vaccine cards voluntary for covered locations and removing the requirement for large outdoor events.  Covered locations include restaurants with indoor dining, gyms, personal care establishments, and entertainment and recreation facilities.  The motion passed 12-0, with 3 absent members.  The Council did not hold a discussion on this matter before ...

President Biden has signed H.R.4445, known as the “Ending Forced Arbitration of Sexual Assault and Sexual Harassment Act of 2021”, into law. The law amends the Federal Arbitration Act to state that, at the election of the person alleging conduct constituting sexual harassment or sexual assault, or the named representative of a class or in a collective action alleging such conduct, no predispute arbitration agreement or predispute joint-action waiver will be valid or enforceable with respect to such cases as filed under federal, tribal, or state law. The law further provides ...

On March 4, 2022, Los Angeles County’s revised Public Health Order (the “Order”) went into effect, significantly relaxing masking rules and indoor proof-of-vaccine requirements.  As of March 3, 2022, Los Angeles County’s case and test positivity rates and hospitalizations had declined to a “Low” level, which prompted the change. 

Masks are strongly recommended, but no longer required in indoor public settings and businesses.  Masks continue to be required in transportation hubs, all healthcare settings, including long term care and adult and senior care ...

On February 23, 2022, the Los Angeles County Department of Public Health announced that it would be modifying its Health Officer Order to allow establishments, businesses, and venues verifying vaccination status to make masking indoors optional for fully vaccinated patrons and workers. The modified Order will go into effect at 12:01 am on Friday, February 25, 2022.

Businesses, establishments, or venues that want to allow fully vaccinated customers and workers to unmask while indoors must verify that 100% of customers and workers provide proof of full vaccination or proof of a ...

On February 9, 2022, Governor Newsom signed Senate Bill 113, approving additional economic relief for the COVID-19 pandemic. The bill passed with strong bipartisan support, with a vote of 68-0 in the State Assembly and 27-0 in the State Senate.

SB 113 makes federal grants received through the Restaurant Revitalization Fund exempt from state tax liability. This means that businesses that received these grants will not have to pay California state taxes on the grant amounts.

Additionally, SB 113 will provide $150 million in grants to the state's Small Business COVID-19 relief ...

Consistent with last week’s announcement from the Los Angeles County Department of Public Health, at 12.01 AM today the county lifted the requirement that masks be worn outdoors at K-12 schools and childcare facilities as well as outdoor “mega” events, such as those held at the Hollywood Bowl and SoFi Stadium. The change is due to the drop in hospitalizations for COVID-19, as well as new COVID-19 cases, which have declined significantly over the last few weeks. 

However, unlike most other areas of California and, indeed, the United States, Angelenos will still be required to wear ...

Following Governor Newsom’s announcement that California’s indoor mask mandate would end on February 15, 2022 for all vaccinated persons, the Los Angeles County Department today issued a statement clarifying when the county’s own mask requirements would be eased. Specifically, when COVID daily hospitalizations drop below 2,500 for 7 consecutive days, masking will not be required at outdoor mega-events or in outdoor spaces at childcare facilities and K-12 schools. In addition, the masking requirement for indoor spaces will continue until:

• Los Angeles County has two ...

On February 7, 2022, California Governor Gavin Newsom announced that the state’s indoor mask mandate would expire on February 15, 2022, for vaccinated people.

New face covering guidance from the California Department of Public Health (“DPH”) will go into effect on February 16, 2022. Under the guidance, universal masking is only required in specified settings. These settings where masks will continue to be mandatory include:

• Public transit;
• Indoors in K-12 schools;
• Emergency shelters;
• Healthcare settings;
• State and local correctional facilities and detention centers;

The California Legislature expanded the Breaking Barriers to Employment Initiative by passing Assembly Bill 628, which amends Section 14033 of the Unemployment Insurance Code. 

AB 628 builds on the 2017 California Workforce Innovation and Opportunity Act, which made programs and services available to assist individuals with employment barriers with finding opportunities to join the workforce. Specifically, AB 628 seeks to enhance racial and economic justice, in addition to promoting employment. In doing so, AB 628 revises the 2017 grant selection criteria requirements, the ...

Continuing the trend of legislation in response to headline news, California passed SB 362 prohibiting the use of quotas at chain community pharmacies. This bill modifies California’s Pharmacy Law, which regulates all pharmacy licensees.

SB 362 applies to chain community pharmacies, which are defined as chains of 75 or more stores in California under the same ownership. Chain community pharmacies are distinct from independent community pharmacies (four pharmacies or less under the same ownership).

The bill adds Section 4113.7 to the Business and Professions Code. That ...

Governor Newsom and the California Legislature have agreed to enact new legislation that will revive COVID-19 paid sick leave. The prior law created by Senate Bill 95, expired on September 30.  The new law is included in the state budget process and should be complete in a matter of weeks.

The proposal is still being worked on, but it is likely that it will apply to all businesses with 26 or more employees. It is also probable that the bill will be retroactive to January 1, 2022 and will continue until September 30, 2022. The qualifying reasons will be the same as in SB 95 and will cover any ...

In an effort to support the Me Too movement, California previously enacted Code of Civil Procedure section 1001 to prohibit any provision in a settlement agreement that prevents the disclosure of an act of sexual harassment, discrimination or assault related to a claim filed in a civil or administrative action.  In addition, Government Code section 12964.5 was created to make it unlawful to require an employee to sign a nondisparagement or nondisclosure agreement to deny the employee the right to disclose information about unlawful acts in the workplace, including sexual ...

On the same day that the United States Supreme Court imposed a stay of enforcement on OSHA’s vaccine mandate for private employers with over 100 employees, the Court ruled that the Centers for Medicare & Medicaid Services (CMS) had the statutory authority to impose a vaccination mandate on healthcare providers who care for Medicare and Medicaid patients. Facilities in states that were not previously subject to injunctions (listed below) must demonstrate that their staff is fully vaccinated by February 28, 2022.

For those states where injunctions were lifted following the ...

Following an expedited hearing on January 7, 2022, the United States Supreme Court granted a petition for stay of enforcement of OSHA’s COVID-19 Vaccination and Testing; Emergency Temporary Standard that would have been imposed on employers of 100 or more employees.  This stay is, in effect, injunctive relief pending disposition of the numerous businesses, trade groups, and non-profit organizations’ consolidated petitions for review in the Sixth Circuit Court of Appeals.

The Court disagreed with the Sixth Circuit’s prior opinion and determined that the applicants’ ...

On January 5, 2022, Los Angeles County’s Department of Public Health modified its ongoing COVID-19 health order due to drastic increases in cases and resultant hospitalizations related to the Omicron and Delta variants. Among these modifications is an important new requirement which pertains to the wearing of masks by employees. 

Specifically, employers in Los Angeles County must now provide their employees who work indoors and in close contact with other workers or the public with a well-fitting medical-grade mask, surgical mask or higher-level respirator, such as an N95 ...

The 2022 mileage rates used to calculate the deductible costs of operating an automobile for business, charitable, medical, or moving purposes have increased from last year or remained unchanged. Specifically, as of January 1, 2022, the standard mileage rates for the use of a car (also vans, pickups or panel trucks) are:

• 58.5 cents per mile driven for business use, up two and one-half cents from the rate for 2021;
• 18 cents per mile driven for medical, or moving purposes for active-duty members of the Armed Forces, up two cents from the rate for 2021; and
• 14 cents per mile driven in service of ...

Under Assembly Bill 1003, which becomes effective on January 1, 2022, the intentional theft of wages in an amount greater than $950 from any one employee, or $2,350 in the aggregate from 2 or more employees, by an employer in any consecutive 12-month period can be punishable as grand theft. Violations carry a possible prison sentence of up to three years. This criminal charge would be in addition to any attempt to recover wages, penalties, interest and attorneys’ fees and costs through a civil action.

For purposes of the new law, “wages” include wages, gratuities, benefits or ...

Businesses and attorneys alike have kept a close eye on the developments surrounding the challenge to California Assembly Bill 51 (now codified as Labor Code section 432.6). Most recently, in a 2-1 decision, the 9^th Circuit Court of Appeals declared that the Federal Arbitration Act (“FAA”) did not preempt the new law which bars California employers from utilizing mandatory arbitration agreements or from requiring an employee to sign an arbitration agreement as a condition of employment.  One month after this decision came down, the Chamber of Commerce of the United States filed ...

On January 1, 2022, Assembly Bill 701, which aims to regulate and curb the use of quotas in warehouses, will go into effect. While the bill was specifically intended to target Amazon, all California warehouse employers must pay close attention to its provisions and to accompanying regulations that will likely be issued in 2022.

The bill requires employers of 100 or more nonexempt employees at a single warehouse distribution center, or 1000 or more non-exempt employees at one or more warehouse distribution centers in the state, to provide each employee with a written description of ...

Since being enacted in 2004, the Private Attorneys General Act (PAGA) has been a proverbial bogeyman for employers in California. Despite having only a one-year look-back period, PAGA claims commonly inflate plaintiff’s demands and judicial decisions to a punitive degree that decimates an employer’s incentive to maintain a business in California. This statute, among other factors, has served to motivate a mass exodus of businesses fleeing to other, more business-friendly states. While PAGA has withstood many challenges and attempted reforms over the years, there is ...

Effective January 1, 2022, the California Department of Industrial Relations issued a new compensation threshold for exempt computer software employees, reflecting an increase of 5.3% from last year. 

To qualify for the overtime exemption, computer software employees must be paid a salary of at least $104,149.81 annually ($8,679.16 monthly), or an hourly wage of at least $50.00. In addition, a computer software employee must also meet the duties test set forth in California Labor Code Section 515.5, which are also included in all Wage Orders except Orders 14 and 16. 

More ...

Citing the Omicron variant as a concern, the California Department of Public Health (CDPH) announced that it is requiring masks to be worn in all indoor public settings, irrespective of vaccine status, for the next four weeks (December 15, 2021 through January 15, 2022). Here is a link to the CA Department of Public Health's updated guidance (as of December 13, 2021) which reflect the latest masking state order.  The order specifies that masks must be worn in all California indoor public settings, irrespective of vaccine status, for the next four weeks (December 15, 2021 through January ...

Enacted in 2004, California’s Private Attorneys General Act (“PAGA”) authorizes aggrieved employees to file lawsuits to recover civil penalties on behalf of themselves, other employees, and the State of California for Labor Code violations. Although only 25% of the amount recovered can be retained by the aggrieved employees with 75% going to the Labor and Workforce Development Agency, PAGA has become a tool commonly used by plaintiffs to attempt to inflate even minor claims beyond reasonable value.  Although the Legislature has made minor changes to the law over the years ...

For much of the COVID-19 pandemic, employers have been frustrated by the lack of notice regarding important mandates issues by different public health officials at all levels of state and local government. Senate Bill 336 is designed to make obtaining current information a little easier. 

With the enactment of SB 336, if either the State Department of Public Health or a local health officer issues an order or mandatory guidance related to COVID-19, the respective agency must do the following:

(1) Publish on their internet website the order or mandatory guidance and the date it takes ...

Senate Bill 606, which becomes effective on January 1, 2022, strengthens Cal/OSHA’s enforcement powers by creating two new categories of Cal/OSHA violations: “enterprise-wide” and “egregious”. A finding of an enterprise-wide violation may result in increased fines and penalties and requirements for abatement across multiple employer worksites, while an egregious violation permits increased fines and penalties per employee, per violation in certain circumstances. The new law also highlights the importance of compliant written health and safety policies.

Since the turn of the century, the judicial and legislative branches in California have added barrier after barrier to employers who have consciously sought arbitration; an oft-stated “preferred” method of resolution. The most draconian of these barriers became effective on January 1, 2020, with the enactment of Code of Civil Procedure § 1281.97 et seq.  These statutes provide that if an employer fails to timely pay the fees for the arbitration, the employee would be entitled to either withdraw the claim from the arbitration and proceed in court or otherwise compel arbitration ...

On January 1, 2022, as a result of Assembly Bill 1033, leave under the California Family Rights Act (CFRA) will be expanded to provide employees with up to twelve weeks of job-protected leave to provide care to a parent-in-law with a serious medical condition.  The CFRA previously only allowed for leave for an employee to care for a child, parent, grandparent, grandchild, sibling, spouse, or domestic partner who has a serious health condition.

AB 1033 also makes changes to the Department of Fair Employment and Housing’s (DFEH’s) small employer family leave mediation pilot ...

Senate Bill 807, which becomes effective January 1, 2022, will extend the period in which employers must retain personnel records for applicants and employees from 2 years to 4 years from the date the records were created or received, or the date the employment action was taken. 

In the event that a complaint with the Department of Fair Employment and Housing (“DFEH”) has been filed against an employer, the employer must retain any related personnel records until the employer has been notified that the action has been fully resolved, or the first date after the period for filing a ...

Senate Bill 657, a new law which becomes effective on January 1, 2022, in recognition of the prevalence of remote workers during the COVID-19 pandemic, permits employers to email required employment postings to employees. However, the law specifies that such email distribution “shall not alter the employer’s obligation to physically display the required posting.” Thus, notices requiring posting must still be physically displayed in the workplace, in a conspicuous and easily accessible location, such as an employee lunchroom or bulletin board.

Although SB 657 does not ...

On January 1, 2022, Senate Bill 62, the Garment Worker Protection Act, will become effective, making California the first state to ban piece rate pay for garment workers. SB 62 prohibits any “employee engaged in the performance of garment manufacturing” from being “paid by the piece or unit, or by the piece rate.” The law creates a compensatory damages penalty of $200 per employee against a garment manufacturer or contractor, payable to the employee, for each pay period in which each employee is paid by the piece rate. “Garment manufacturing” is defined to include sewing ...

In early November the Centers for Medicare and Medicaid Services (CMS) announced that it would be requiring applicable healthcare facilities to have a policy in place ensuring that eligible staff receive their first dose of a COVID-19 vaccine series by December 5, 2021 and to have completed the series by January 4, 2022. The failure to comply with the requirement would place an organization’s Medicare funding in jeopardy. On Tuesday, November 30, 2021, Judge Terry A. Doughty, a United States District Court Judge sitting in Louisiana, issued an injunction stopping enforcement of ...

Less than one week into LA’s SafePass proof of vaccine requirements for businesses went into effect, the Los Angeles City Council (the “Council”) voted 10-0 to remove malls and shopping centers as covered businesses. Mall operators have pointed to the difficult of enforcing the ordinance because malls and shopping centers have so many different points of entry. It remains unclear when the revisions to the ordinance will go into effect. Malls and shopping centers remain covered businesses under the ordinance until the language is formally changed, but the ordinance is not ...

“It is the intent of the Legislature to afford all Californians, regardless of whether they have disabilities, with protections to ensure equal pay and equal treatment in the workplace.” These are the closing words of the preface to Senate Bill 639; a noble goal. However, the good intentions paving the way for this new law – equalizing the monetary playing field for employees with disabilities – may result in more harm than good for some of those very workers.

Before SB 639 was passed, employers could apply to the Industrial Welfare Commission for a special license, renewable ...

On November 8, 2021, SafePassLA officially went into effect. The Los Angeles City ordinance requires patrons of covered locations to demonstrate proof of full vaccination against COVID-19 before entering indoor spaces. Specifically, covered locations include:

• The indoor portions of all establishments where food or beverages are served, including but not limited to, restaurants, bars, fast-food establishments, coffee shops, tasting rooms, cafeterias, food courts, breweries, wineries, distilleries, banquet halls, and hotel ballrooms;
•  Gyms and fitness venues ...

In 2013 the California Legislature passed Assembly Bill 1386, which amended Labor Code section 98.2, giving the Labor Commissioner additional means to collect wages and penalties on behalf of workers. Labor Code section 98.2 was modified so that any amount due under a final order by the Labor Commissioner permits the Labor Commissioner to record a Certificate of Lien against the employer’s real property.

Fast forward to September 2021 and the passage of Senate Bill 572.  This bill adds section 90.8 to the Labor Code, which becomes effective January 1, 2022.  This statute will allow ...

This weekend a federal court in Louisiana issued a temporary stay effectively stopping enforcement of the Occupational Safety and Health Administration’s Emergency Temporary Standard requiring vaccination or weekly testing for all employers with 100 or more employees except for certain healthcare facilities and federal contractors. Following the announcement of the ETS by OSHA last week, at least 27 states filed lawsuits to challenge the rules. The Fifth Circuit Court of Appeals sitting in New Orleans issued the stay on the basis that there are “grave statutory and ...

At a city council meeting which began on November 3, 2021, and ended on November 4, 2021, the West Hollywood City Council voted to increase the minimum wage for hourly workers in West Hollywood.  In response to significant pressure from local businesses, the council made last minute changes to the ordinance to require a phased-in approach for some businesses.  Specifically, large businesses with 50 or more employees will be required to raise the minimum wage from the current $14.00 per hour to $15.50 on January 1, 2022, with further increases scheduled for July 1, 2022 at $16.50, January ...

On November 4, 2021, President Biden announced rules requiring COVID-19 vaccinations or weekly testing for companies with 100 or more employees.  These requirements will reach two-thirds of all private-sector workers in the United States.

The U.S. Department of Labor’s Occupational Safety and Health Administration’s (“OSHA’s”) Emergency Temporary Standard (“ETS”) will be officially published in the Federal Register on November 5, 2021, but an unpublished version of the 490-page document is available now. The ETS applies to all employers with a total of 100 or ...

On September 30, 2021, the U.S. Department of Health and Human Services (“HHS”) Office of Civil Rights issued guidance to help the public and employers understand what privacy rules apply to disclosures and requests for information about whether a person has received a COVID-19 vaccine.

The Health Insurance Portability and Accountability Act of 1996 (“HIPAA”) has a Privacy Rule that regulates covered entities, including health plans, health care clearinghouses and health care providers. According to HHS, “The HIPAA Privacy Rule establishes national standards to ...

Today, October 7, 2021, Los Angeles County Public Health Officer Order’s vaccine requirements go into effect. These requirements were first announced as an executive order of the Public Health Officer and were ratified by the Los Angeles County Board of Supervisors on September 15, 2021.

Under these requirements, proof of vaccination or a negative test result will be required to enter outdoor mega-events, and proof of at least one dose of the COVID-19 vaccine will be required to enter or work in indoor portions of bars, lounges, nightclubs, breweries, wineries and distilleries in ...

On Wednesday, October 6, 2021, the Los Angeles City Council voted 11-2 to approve a new ordinance that requires proof of a COVID-19 vaccination to enter indoor restaurants, shopping centers, movie theaters, hair and nail salons, and a wide variety of other indoor venues. Grocery stores and pharmacies are not included in the ordinance. If religious or medical exemptions are given to an individual, proof of a negative COVID-19 test taken within 72 hours is needed for the individual to enter an indoor space. The ordinance will go into effect on November 4, 2021.

Because the ordinance ...

On September 29, 2021, the Los Angeles City Council debated a sweeping proof-of-vaccine requirement, with most Councilmembers indicating support. The ordinance will likely be passed upon its second reading next Tuesday.

The ordinance would require customers to show proof of full COVID-19 vaccination status to enter a wide variety of public spaces, including restaurants, coffee shops, gyms and fitness venues, movie theaters, shopping malls, concert venues and personal care establishments.

The City’s proposed rules would expand Los Angeles County’s existing ...

In a year of tough decisions for California employers, the Ninth Circuit just issued another mixed bag of legal decisions to navigate, this time regarding the enforceability of mandatory arbitration agreements.

CA Labor Code § 432.6 and Chamber of Commerce of the United States v. Bonta

In October, 2019, California passed Assembly Bill 51, which became codified as Labor Code § 432.6, effective January 1, 2020. This law provided that employers could not require employees to sign a mandatory arbitration agreement as a condition of employment. In addition, it created civil and criminal ...

On September 15, 2021, the Los Angeles County Board of Supervisors announced that proof of a COVID-19 vaccination will be required at indoor bars, wineries, breweries, nightclubs and lounges in Los Angeles County. This requirement will be announced in a Department of Public Health Order.

The order will recommend, but not require, vaccine verification for employees and customers in indoor portions of restaurants.

The Los Angeles County mandate will also apply to employees of covered establishments and require that both employees and customers have at least one vaccine dose by ...

On September 10, 2021, the City of West Hollywood issued an Emergency Executive Order (the “Order”) implementing vaccine verification requirements for some businesses throughout the City. The West Hollywood City Council first discussed vaccine mandates for businesses in a July 21, 2021 meeting.

The Order mandates restaurants, bars, nightclubs, health and fitness facilities, and personal care establishments to require all patrons ages 18 and older to show proof that they are fully vaccinated before entering any indoor portions of a facility. Additionally, business ...

On September 9, 2021, President Biden signed two Executive Orders imposing sweeping new vaccine mandates on federal workers and contractors. This new mandate represents a shift in the White House’s policy on vaccinations, which had previously offered an alternative to those who wish to remain unvaccinated by allowing those individuals to wear masks while on federal property as long as they submitted to regular screening for COVID-19.

All federal employees, contractors and subcontractors employed by the federal government shall be required to provide proof of vaccination ...

On August 17, 2021, the Los Angeles County Department of Public Health announced a mask mandate for large outdoor mega-events of more than 10,000 people. This is the first outdoor mask mandate since the County began its reopening attempt on June 15, 2021.

All attendees at those events must now wear face masks at all times, except when actively eating or drinking. Event operators are required to prominently include information about the mask mandate throughout the event and on communications to guests. The County also has a recommendation (but not a mandate) that all attendees at ...

On Wednesday, August 11, 2021, the Los Angeles City Council approved a motion to require people to have at least one dose of the COVID-10 vaccine before being admitted to public spaces, including restaurants, entertainment venues and retail stores. 

The motion states: “the City Council instruct[s] the City Attorney to prepare and present an ordinance that would require eligible individuals to have received at least one dose of vaccination to enter indoor spaces, including but not limited to, restaurants, bars, retail establishments, fitness centers, spas and entertainment ...

Keeping current on the frequent changes to COVID-19 business requirements can be very challenging. The return to indoor masking requirements on July 17, 2021, in Los Angeles County has been widely publicized. Even so, Los Angeles businesses may not be aware that the county is currently enforcing the indoor masking requirements through onsite inspections of county businesses. 

In fact, during the short period between July 17, 2021 and July 23, 2021, Los Angeles County reports that its Department of Public Health inspectors visited 1,013 restaurants, 9 bars, 222 food markets, 22 ...

On July 16, 2021, the Los Angeles County Department of Public Health (LACDP) issued a revised health order available here (Order) requiring masks for everyone, regardless of vaccination status, in all indoor public settings, venues, gatherings and businesses. Examples of such locations include offices, retail, restaurants, theaters, family entertainment centers, meetings, etc.

The Order also requires that individuals, businesses, venue operators or hosts of public indoor settings require all patrons to wear masks in all indoor settings, regardless of vaccination status ...

Beginning Saturday, July 17, 2021, at 11:59 P.M., Los Angeles County will once again require all residents to wear masks in indoor public spaces, regardless of their vaccination status. The requirement will be reimposed due to rising Los Angeles County COVID-19 cases and the spread of the highly infectious Delta variant.

Los Angeles County reported an average of 1,077 new cases daily during the 7-day period ending July 14, 2021, which is a 261% increase from the prior two-week period. An additional 1,537 cases were reported today, July 15th, representing an increase of over 80 ...

The Equal Employment Opportunity Commission (EEOC) has issued updated guidance regarding providing incentives to employees to encourage COVID-19 vaccination, examining various scenarios under the Americans with Disabilities Act (ADA) and the Genetic Information Discrimination Act of 2008 (GINA). The updated guidance can be found here under items K.16 - K.21.

The guidance confirms that under the ADA, as long as the incentive is not so substantial as to be coercive, an employer may provide an incentive (which may include both rewards and punishments) to employees for ...

On June 3, 2021, AB-257, the Fast Food Accountability and Standards Recovery Act (the “FAST Act”) was defeated in the California Assembly, coming up three votes short of the 41 votes needed. 

The FAST Act would have established a Fast Food Sector Council (the “Council”), comprised of 11 members appointed by the Governor, Speaker of the Assembly and Senate Rules Committee. Under the proposed bill, that Council would have been tasked with conducting a full review of the adequacy of fast food restaurant health safety and employment standards, and establishing industry-wide ...

On June 23, 2021, the U.S. Department of Labor published a Notice of Proposed Rulemaking to limit the amount of non-tip producing work that a tipped employee can perform when an employer is taking a tip credit. 

According to the DOL, the proposed rule “clarifies when an employee is working in a tipped occupation and when a worker has performed such a substantial amount of non-tipped labor that an employer can no longer take a tip credit and must pay the full federal minimum wage to the worker.” 

Under the proposed rule, if a tipped employee spends either more than 20 percent of their ...

On June 17, 2021, the California Occupational Safety & Health Standards Board (the Cal/OSHA Board) voted to approve a set of new modified COVID-19-related workplace emergency regulations, found here. The new modified regulations will need to be approved within ten days by the state Office of Administrative Law, which is expected to approve the rules. Governor Newsom has also indicated that he may approve the rules immediately. 

These regulations replace more stringent regulations that were inconsistent with the latest guidance issued by the Centers for Disease Control and ...

On June 9, 2021, the California Department of Public Health announced a new face coverings guidance that will go into effect statewide on June 15, 2021. In addition, Governor Newsom’s office announced that on June 15, 2021, California would be fully reopen with no capacity limits or distancing required by the state. The county-by-county color tier system will also be eliminated. However, individual county health departments may continue to impose restrictions under local public health orders.

Under the State’s new guidance, fully vaccinated persons are not required to wear ...

On June 3, 2021, the California Occupational Safety & Health Standards Board approved new modified COVID-19-related emergency regulations. The new modified regulations, which are found here, will need to be approved by the state Office of Administrative Law within ten days. The OAL is expected to approve the rules.

When approved, the new regulations will become effective on June 15, 2021, the same day on which Governor Newsom announced California would reopen. These regulations may be further refined in the coming weeks to take into account changes in circumstances, especially as ...

On June 3, 2021, California Governor Gavin Newsom announced the extension of some pandemic alcohol measures designed to help restaurants and bars. The press release states: “The Administration today extended relief measures that permit restaurants and bars to continue to benefit from their investments to expand outdoor operations in areas such as sidewalks and parking lots, and to continue the sale of to-go alcoholic beverages with food deliveries, among other successful pandemic adaptations. In addition, the Administration is urging local governments to facilitate ...

The United States Court of Appeals (9th Circuit) recently upheld California’s CalSavers Retirement Savings Program (CalSavers), which provides retirement savings accounts to employees without employer retirement benefit plans. The Howard Jarvis Taxpayers Association sued to challenge the law establishing the CalSavers program arguing that it was superseded by federal retirement law, specifically the federal Employee Retirement Income Security Act of 1974 (ERISA). However, the U.S. Appeals court upheld the CalSavers program holding that it was not preempted by ERISA.

On May 13, 2021, California Governor Gavin Newsom announced an expansion of the state’s COVID-19 Small Business Relief Grant program from $2.5 billion to $4 billion. The expansion makes California’s business relief grants program the largest in the country.

To date, 198,000 businesses have received grants under the program, for a total of $475,001,244. While the application portal is currently closed, it is expected to reopen after the new grant's funds have been processed. The Governor’s office announced the following initiatives for businesses:

• Estimated $895 ...

On May 17, 2021, California’s Secretary of Health and Human Services, Dr. Mark Ghaly, announced that California would begin following the U.S. Centers for Disease Control and Prevention (the “CDC”)’s new guidelines regarding the lifting of mask restrictions for fully vaccinated individuals on June 15, 2021. These new guidelines provide that those who are fully vaccinated against the COVID-19 virus no longer need to wear masks outdoors or in most indoor settings.

After serving as one of the major epicenters for the COVID-19 virus in the United States in the beginning of this ...

On May 13, 2021, the U.S. Centers for Disease Control and Prevention (the “CDC”) issued new guidance lifting mask restrictions for fully vaccinated individuals. Under the new guidance, people who are fully vaccinated may stop wearing masks or maintaining social distance in most outdoor and indoor settings. 

The CDC’s summary of changes states that “fully vaccinated people no longer need to wear a mask or physically distance in any setting, except where required by federal, state, local, tribal, or territorial laws, rules, and regulations, including local business and ...

Employers know that the Consolidated Omnibus Budget Reconciliation Act (COBRA) provides an opportunity for group health plan continuation coverage to covered employees and their families upon the occurrence of a qualifying event, such as a termination of employment or a reduction in hours. The recently enacted American Rescue Plan Act of 2021 (ARP) provides COBRA limited premium subsidies and new enrollment rights to certain Assistance Eligible Individuals. An Assistance Eligible Individual would not be required to pay COBRA premiums from April 1, 2021 through September 30 ...

On Wednesday, May 5, 2021, the Los Angeles County Public Health Department (the “Department”) is expected to issue a new Public Health Officer order to officially move into the least restrictive “yellow tier” of California’s color-coded reopening system. The criteria for entering the yellow tier is less than 2% positivity and fewer than 1 daily new case per 100,000 county residents. The Order would be effective on Thursday, May 6, 2021.

On April 30, 2021, the Department made some modifications to the Public Health Order, lifting hours limitations on bars, breweries and ...

California’s Department of Fair Employment and Housing (DFEH) has updated its COVID-19 vaccination guidance, replacing its prior guidance issued July 24, 2020.

The DFEH’s updated guidance, available here, permits employers to require employees to receive a vaccine approved by the Food and Drug Administration (FDA), subject to certain exceptions and requirements. 

Specifically, in instituting such a mandatory policy, an employer’s policies or practices cannot discriminate or harass employees or applicants based on a characteristic protected by the Fair Employment ...

Governor Newsom has signed into law Senate Bill 93, a state-wide right of recall, intended to assist California workers in sectors that have been especially hard hit by the COVID-19 pandemic. This new law, which is similar to earlier Los Angeles County and Los Angeles City COVID-19 ordinances, goes into effect immediately and will remain in effect through December 31, 2024. 

California’s new right of recall law applies to certain hotels, private clubs, event centers, airport hospitality operations and providers of janitorial, maintenance or security services to office, retail ...

On April 17, 2021, the Los Angeles Department of Public Health (“Department”) revised its protocol for restaurants to permit increased activities in light of the County’s Orange Tier reopening.

The changes include:

• Allowing restaurants to have live outdoor entertainment. Live entertainment operations are allowed outdoors only.  Performers must be at least 12 feet away from seated customer groups.
• Allowing restaurants to host private events when the restaurant is not operating for regular business. Private events are subject to a separate protocol and restaurants ...

On April 6, 2021, California Governor Gavin Newsom announced a plan to lift all COVID-19 virus restrictions by June 15, 2021. The full reopening is contingent on both (1) sufficient vaccine supply to ensure that all Californians age 16 and over who wish to be inoculated are able to do so and (2) stable and low hospitalization rates. The full reopening would mean an official end to California’s color-coded tier system.

It remains unclear what restrictions may remain under the full reopening but Governor Newsom specified that some form of mask mandate will remain. The California ...

Both Los Angeles and Orange County are now eligible to move from the Red Tier into the Orange Tier of COVID-19 reopening guidelines under the state’s Blueprint for a Safer Economy. 

On March 30, 2021, the Los Angeles County Public Health Department announced that while it satisfied the numbers requirement to move into the Orange Tier, it would wait until April 5 to permit businesses to operate at increased capacity.

On April 5, Los Angeles County will officially adopt Orange Tier reopening rules to the Public Health Officer Order. Under these new rules, the following changes will take ...

As reported here, on March 19, 2021, Governor Gavin Newsom signed into law Senate Bill 95. This new law requires all California employers (including those with collective bargaining agreements) with 25 or more employees to provide paid supplemental sick leave to employees who are unable to work or telework due to certain COVID-19 related reasons. In-home supportive service providers are also required to provide paid supplemental sick leave to their providers.

The new COVID-19 supplemental sick leave must be provided on the oral or written request of the covered employee ...

On March 19, 2021, California Governor Gavin Newsom signed Senate Bill 95 providing a new form of COVID-19 related paid sick leave for many California workers. The law will become effective on March 29, 2021, and applies retroactively to sick leave taken beginning on or after January 1, 2021. All California employers with more than 25 employees and in-home supportive services providers are required to provide the supplemental sick leave benefits to employees. The law will remain in effect through September 30, 2021.

SB 95 provides for COVID-19 supplemental paid sick leave for ...

On March 11, 2021, the Los Angeles County Department of Public Health (the “Department”) announced an anticipated reopening of certain activities between March 15 and March 17, as L.A. County moves to the lower risk Red Tier of the state’s reopening plan. The exact date of the reopening will depend on when the County hits the threshold of 2 million vaccine doses being administered to people in the most under-resourced communities across the County.

The following activities will be permitted next week after L.A. County moves to the Red Tier:

• Museum, zoos and aquariums can open ...

On March 1, 2021, the Court of Appeal, Second Appellate District ruled in favor of the Los Angeles County Department of Public Health (the “Department”) officials who halted outdoor dining in November 2020 during a spike in COVID-19 cases.

After the Department announced a ban on all outdoor dining, the California Restaurant Association (“CRA”) filed a lawsuit. State Court Judge James Chalfant initially ruled in favor of the CRA on December 8, 2020, and held that the Department acted arbitrarily and failed to perform the required risk-benefit analysis before issuing the ...

On February 23, 2021, California Governor Gavin Newsom signed a legislative package of six bills providing relief to individuals and businesses experiencing hardship due to the COVID-19 pandemic. Some of these measures are directly targeted towards the restaurant and hospitality industry.

Small Business Grant Relief

The new measures provide $2.1 billion in small business grants of up to $25,000. This is a significant increase over the $500 million that was initially approved for these grants in November 2020.

Grants are available only for businesses and nonprofits with gross ...

The CalSavers Retirement Savings Program (CalSavers) was established to assist the estimated 7.5 million California employees without employer retirement savings plans. Mandatory compliance is phased-in over time and depends on the size of the employer. The current phase requires all California employers with 51 to 100 employees to register with CalSavers or certify that they are exempt by June 30, 2021. More specifically, employers without employer-sponsored retirement plans must register to begin offering the state-mandated employer retirement plan to their employees ...

On February 24, 2021, the Los Angeles City Council voted 14-1 to pass an ordinance mandating that employers provide $5/hour in additional premium hazard pay for on-site grocery and drug retail workers.

The ordinance is expected to go into effect the week of March 1, after it is signed by Mayor Eric Garcetti, who has already expressed support. The pay increase will go into effect for 120 days and then expire.

The ordinance applies to grocery stores and drug retails stores with more than 300 employees nationwide and more than ten employees on-site in Los Angeles. Approximately 26,000 ...

On February 23, 2021, the Los Angeles County Board of Supervisors voted 4-1 to institute a $5 per hour “Hero Pay” increase for frontline grocery workers and drug retailers in unincorporated areas of Los Angeles County. The increase is effective immediately and will remain in effect for 120 days. The ordinance will increase pay for approximately 2,500 grocery workers in these unincorporated areas of the County.

The motion was co-sponsored by Supervisors Hilda Solis and Holly Mitchell. The motion states: “Frontline grocery and drug retail workers have been met with COVID-19 ...

On February 5, 2021, the Department of Labor (DOL) published two notices of proposed ruling to delay the effective date of two rules finalized by the DOL under the Trump Administration regarding tips and independent contractor rules. The proposed delays are designed to allow the DOL “additional opportunity for review and consideration” of both rules.

The first rule is Tip Regulations Under the Fair Labor Standards Act (“Tip Regulations”), which was published on December 30, 2020, and set to go into effect on March 1, 2021. The proposed rule would delay the effective date of ...

Effective January 1, 2021, the California Department of Industrial Relations issued a new compensation threshold for exempt computer software employees, reflecting an increase of 2% from last year. 

To qualify for the overtime exemption, computer software employees must be paid a salary of at least $98,907.70 annually ($8,242.32 monthly) or an hourly wage of at least $47.48.  In addition, a computer software employee must also meet the duties test set forth in California Labor Code Section 515.5, which are also included in all Wage Orders except Orders 14 and 16.

More specifically ...

The 2021 mileage rates used to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes have decreased from last year, or remained unchanged. Specifically, as of January 1, 2021, the standard mileage rates for the use of a car (also vans, pickups or panel trucks) are:

• 56 cents per mile driven for business use, down one and one-half cents from the rate for 2020;
• 16 cents per mile driven for medical or moving purposes, down one cent from the rate for 2019; and
• 14 cents per mile driven in service of charitable organizations, unchanged from ...

On January 21, 2021, President Biden issued an Executive Order on Protecting Worker Health and Safety that calls for a government review of worker safety standards for COVID-19.

The Executive Order directs the Secretary of Labor to issue revised guidance to employers on workplace safety during the COVID-19 pandemic within two weeks. It further directs the Secretary of Labor to consider emergency temporary standards on COVID-19 and issue those standards by March 15, 2021.

The Executive Order calls for a review of enforcement efforts previously undertaken by the Occupational ...

On January 25, 2021, the California Department of Public Health announced that it was lifting the Regional Stay at Home Order for all regions statewide, including Southern California. Four-week ICU capacity projections for the three regions still under the order (Southern California, Bay Area and San Joaquin Valley) were above 15%.

According to the Department, “this action allows all counties statewide to return to the rules and framework of the Blueprint for a Safer Economy and color-coded tiers that indicate which activities and businesses are open based on local case rates ...

On January 25, 2021, Los Angeles County Director of Public Health Barbara Ferrer announced that the county would be permitting outdoor dining starting Friday, January 29. The county will also remove operation restrictions for non-essential businesses between 10 p.m. and 5 a.m. The County’s announcement followed Governor Gavin Newsom’s lifting of the state’s Regional Stay at Home Order earlier today.

LA County Board of Supervisors Chair Hilda Solis released a statement that “Los Angeles County will essentially align with the state, by the end of the week, to allow for the ...

On January 1, 2021, the California minimum wage increased to $14.00 per hour for employers with at least 26 employees and $13.00 per hour for smaller employers. The state minimum wage also governs the exempt employee threshold salary, which has increased accordingly. The new minimum salary for employees who otherwise qualify to be exempt from overtime is $58,240 annually for employers with at least 26 employees and $54,080 annually for employers with fewer than 26 employees. 

Further, several California municipalities will raise their minimum wage rates on July 1, 2021. Employers ...

On January 5, 2021, the Los Angeles County Board of Supervisors considered an urgency ordinance requiring grocery stores to pay workers an additional $5/hour as “Hero Pay” due to the COVID-19 pandemic. 

Supervisors Hilda Solis and Holly Mitchell put forth the motion and noted that “as the County experiences a record-breaking wave of COVID-19 cases, grocery retailers have experienced an increase in outbreaks with nearly 500 businesses currently under investigation in the County alone. The inability to practice social distancing consistently at work due to large crowds has ...

Effective beginning December 31, 2020, the Los Angeles County Department of Public Health published a Mandatory Directive on Travel (Appendix W) and issued a Revised Temporary Order, both of which require a mandatory quarantine of at least 10 days after non-essential travel outside the Southern California Region (the counties of Imperial, Inyo, Los Angeles, Mono, Orange, Riverside, San Bernardino, San Diego, San Luis Obispo, Santa Barbara and Ventura). 

The Order and Travel Directive apply to Los Angeles County residents and non-residents who enter Los Angeles County from ...

On December 29, 2020, California Health and Human Services Secretary Dr. Mark Ghaly announced that the Southern California region would remain under a regional stay-at-home order indefinitely until ICU capacity goes above 15%. ICU capacity is currently at 0% in Southern California.

The Regional Stay Home Order was first announced on December 3, 2020. The order prohibits private gatherings of any size, closes sector operations except for critical infrastructure and retail, and requires 100% masking and social distancing except for certain limited exceptions. The order sets a ...

A lawsuit has been filed against Cal/OSHA regarding its recently instituted regulations requiring employers to adopt numerous COVID-19 measures. In addition, a separate suit was filed against Governor Newsom for the outdoor dining ban that is part of recent COVID-19-related regional restrictions. 

Specifically, the National Federation of Independent Business (NFIB) teamed with the National Retail Federation and three NFIB small business owner members to sue the California Division of Safety and Health (Cal/OSHA), the California agency that recently instituted extensive ...

On December 22, 2020, the Department of Labor (“DOL”) announced a final rule revising its tipped employee regulations. The final rule is designed to address and incorporate amendments made to section 3(m) of the Fair Labor Standards Act (“FLSA”) by the Consolidated Appropriations Act of 2018 (“CAA”). That amendment prohibits employers from keeping tips received by their employees, regardless of whether the employer takes a tip credit. It also prohibits employers from allowing managers or supervisors to keep any portion of employee’s tips.

In this final rule, the ...

On December 11, 2020, the U.S. Department of Labor’s Office of the Inspector General (“OIG”) released a report finding that the Department of Labor (“DOL”) did not demonstrate that it followed a sound process in promulgating its 2017 tip rule.

The DOL published a Notice of Proposed Rulemaking of the 2017 tip rule on December 5, 2017. The 2017 tip rule rescinded portions of the DOL’s 2011 tip regulations under the Fair Labor Standards Act, which were passed by the Obama Administration. In issuing the 2017 tip rule, the DOL stated that the 2011 tip rule incorrectly construed ...

Yesterday Judge James Chalfant issued a preliminary injunction against Los Angeles County’s outdoor dining ban on the basis that the county acted arbitrarily and failed to perform the required risk-benefit analysis. The case was brought by the California Restaurant Association and Mark Geragos to challenge the outdoor dining ban imposed by the November 30th Los Angeles County stay-at-home order.

The Court held that L.A. County was required to perform a complete risk-benefit analysis before enacting the ban and that it failed to do so. The Court’s ruling noted that the L.A ...

On December 3, 2020, California Governor Gavin Newsom announced a new regional stay-at-home order.

Under the order, California is divided into five regions: Northern California, Greater Sacramento, Bay Area, San Joaquin Valley and Southern California. Regions where the ICU capacity has gone over 85% will be placed into a Stay-at-Home order for a minimum of three weeks. After the three-week period, reopening of closed services will be based on four-week projections of regional ICU capacity.

Southern California and three other regions are anticipated to reach 85% or more ICU ...

On November 4, 2020, Uber, Lyft and Door Dash secured a victory in their expensive campaign to categorize app-based drivers as independent contractors. 55% of California voters voted in favor of Proposition 22, which means that app-based drivers will be considered independent contractors, and not eligible for employee benefits or protections.  

The Lead-Up: California’s Independent Contractor Muddle

For the past few years, California businesses have reeled from a California court decision and new laws, which dramatically limit the use of independent contractors ...

Today, December 2, 2020, the United States Centers for Disease Control and Prevention (CDC) announced alternatives to the 14-day recommended quarantine for those exposed to COVID-19.

For individuals exposed to COVID-19 who have not experienced symptoms, the CDC advises that quarantine can now end after 10 days if no COVID-19 test is taken, or after 7 days with a negative COVID-19 test.

However, the CDC advises continued monitoring of symptoms for the full 14 days after exposure to the virus "especially if quarantine is discontinued early."  The CDC also recommends the full 14-day ...

Los Angeles County’s Public Health Department announced a new stay at home order, which goes into effect November 30, 2020 and will remain in place until December 20, 2020.

Under the new order, all public and private gatherings with individuals from more than one household are prohibited, except for faith-based services and protests.

The order states that restaurants, bars, breweries and wineries remain closed for in-person dining and drinking “because of high rates of transmission in the community.” The order states that one reason for the closure of in-person dining is ...

On November 22, 2020, the Los Angeles County Department of Public Health announced that it would be shutting down all outdoor dining for a minimum of three weeks. The order will take effect on Wednesday, November 25 at 10 pm, and will be in place for at least the next three weeks.

The Public Health Department stated that “new COVID-19 cases remain at alarming levels and the number of people hospitalized continue to increase, the Los Angeles County Health Officer Order will be modified to restrict dining at restaurants, breweries, wineries and bars as the five-day average of new cases ...

On November 19, 2020, California Governor Gavin Newsom announced a mandatory overnight stay-at-home order. Under the order, Californians in the purple tier of the state’s reopening guidance, which now includes Los Angeles, Orange County, Ventura County and San Diego County, will be prohibited from leaving their homes for nonessential activity from 10pm to 5am. The restriction goes into effect on November 21, 2020 and is scheduled to last until December 21, 2020, although it may be extended.

The order requires “that all gatherings with members of other households and all ...

If your workforce includes private security officers, then new Assembly Bill 1512 should come as great news to you.  Back in 2016, the California Supreme Court issued a controversial decision called Augustus v. ABM Security Services, Inc. which held that ABM’s security officers were not afforded legally compliant, off-duty rest breaks as long as they were required to carry pagers and respond to emergencies on an “as needed” basis.  Citing the “public interest that security officers are able to respond to emergency situations without delay”, California’s new AB 1512 ...

On November 17, 2020, the Los Angeles County Board of Supervisors determined at a closed meeting that it would be setting a 10pm curfew for restaurants, bars, breweries, wineries, non-essential retail businesses and essential offices. These businesses will not be allowed to be open to the public for entry from 10pm to 6am. At this point it is unclear whether this restriction will also apply to takeout and delivery options.

The LA Times and Daily News reported that restaurants, breweries and wineries operating outdoors will be limited to 50% maximum outdoor capacity. All indoor ...

On November 16, 2020, California officials pulled an “emergency brake” and announced that the state would be rolling back reopenings in 28 counties across the state. These changes will go into effect on Tuesday, November 17. Los Angeles County has consistently remained in the purple tier, which prohibits indoor dining, closes bars and breweries, and allows malls and retail at 25% capacity.  However, San Diego County, Ventura County and Orange County were in Tier 2 and have now moved into a more restrictive tier.

Under California’s COVID-19 tier system, Tier 1 ...

Remember Assembly Bill 749 last year? Basically, AB 749, codified as Code of Civil Procedure section 1002.5, prohibited the use of no-rehire clauses in settlement agreements regarding disputes in which the worker had filed a complaint against the employer. It only provided a single narrow exception to allow no-rehire clauses if the employer made a good faith determination that the employee engaged in sexual harassment or sexual assault. Our article regarding AB 749 can be found here.

Employers have been largely dissatisfied with AB 749. They argue that AB 749 is overly restrictive ...

Building upon California’s prior efforts to increase diversity in the workplace, Governor Newsom has signed into law Assembly Bill 979 and Senate Bill 973.  AB 979 requires greater diversity on corporate boards of directors while SB 973 imposes pay reporting requirements based on gender, race, and ethnicity. Both laws will become effective on January 1, 2021.

AB 979 applies to publicly held corporations headquartered in California, requiring them to diversify their boards of directors with directors from “underrepresented communities”.  AB 979 defines “director from ...

On Wednesday, October 22, 2020, the Centers for Disease Control and Prevention (CDC) expanded the definition of a “close contact” with a COVID-19 infected person to include brief interactions over a 24-hour period. This expanded definition has important implications for the workplace and impacts all COVID-19 state and county health orders.

Previously, the CDC defined a “close contact” to mean spending at least 15 minutes within six feet of an infectious person.  The new definition states that cumulative contact of 15 minutes or more within six feet of an infectious person ...

Within hours, the sad story of Jeffrey Toobin became common knowledge. For those of you just emerging from a yoga retreat or a Dodgers-only-World-Series media frenzy, Jeffrey Toobin is (or was, as it remains to be seen what will ultimately happen with his employment status) a legal analyst for CNN and a writer for the New Yorker magazine. Highly respected and knowledgeable, Toobin’s comments on current legal events and issues were often both enlightening and insightful. Until Monday, when Jeffrey Toobin took the occasion of a Zoom call populated with numerous other New Yorker

Assembly Bill 1281 extends to January 1, 2022, the exemption for employee personal information from most requirements of California’s Consumer Privacy Act.  Under last year’s AB 25, this exemption was set to expire on January 1, 2021.  Having been signed by Governor Newsom, AB 1281 will effectively replace AB 25 commencing on January 1, 2021.

The exemption allows businesses to collect and use a person’s information within the context of that person’s role or former role at the business. Employers still have the obligation to provide the employee or applicant with ...

Effective January 1, 2021, Senate Bill 1383 will significantly expand the California Family Rights Act (CFRA) to cover employers with at least 5 employees.  Previously, CFRA leave was required only of employers with at least 50 employees within a 75-mile radius.  Further, SB 1383 expands the CFRA with respect to purposes for which leave may be taken.

With the enactment of SB 1383, employers with only 5 employees or more will have to provide employees who meet certain minimum service requirements with up to 12 workweeks of unpaid protected leave during any 12-month period for a number of ...

Despite significant pressure from labor groups and others, Governor Gavin Newsom vetoed Assembly Bill 3216 yesterday.  If it had been signed, AB 3216 would have created a right of recall for laid-off employees of hotels and event venues, as well as those working in building maintenance.  The bill was criticized by the Chamber of Commerce and others who felt that the legislation sought to further burden industries who were already struggling as a result of the pandemic. Although AB 3216 is now off the table, employers should not forget that certain right to recall ordinances have already ...

As promised, Governor Newsom signed Assembly Bill 2257 which effectively rewrites Assembly Bill 5, the flawed law which sought to codify and clarify the California Supreme Court’s ruling in Dynamex Operations West, Inc. v. Superior Court and took effect on January 1, 2020.  AB 2257 became effective upon signature.

At approximately 14 pages in length, neither employees nor employers are likely to find AB 2257 any less confusing than its predecessor.  It does, however, make it easier for several categories of professions to work as independent contractors if certain conditions are ...

Governor Newsom has signed Senate Bill 1159, a law that effectively codifies and expands his earlier Executive Order N-62-20, which had expired on July 5, 2020. Effective immediately, this bill defines “injury” for an employee to include illness or death resulting from COVID-19 under specified circumstances. In particular, the employee must have tested positive for or was diagnosed with COVID-19 within 14 days after the employee performed services at the employee’s place of employment and the work must have been performed on or after March 19, 2020, and on or before July 5 ...

When considering an employee layoff or business shutdown, as we reported here, employers should keep in mind that longer layoffs in California will trigger Cal-WARN Act rules. Unlike its federal counterpart, California’s WARN Act has no exception for unforeseen business circumstances and requires every facility that employs or employed 75 or more persons within the last 12 months to give 60 days’ written notice to the employees and certain government officials before any mass layoff that will result in a loss of employment for 50 or more people in any 30 day period. Cal-WARN also ...

On September 9, 2020, California Governor Gavin Newsom signed three bills into law that were designed to provide support for small businesses, including restaurants and other food and beverage companies. 

SB 1447 authorizes a $100 million hiring tax credit program for qualified small businesses. The hiring credit will be equal to $1,000 for each net increase in qualified employees, up to $100,000 for each qualified small business employer.  To qualify for the credit, the business’ gross income must have declined at least 50% over this time last year.

AB 1577 excludes Paycheck ...

On September 9, 2020, California Governor Newsom signed AB-1867 as emergency legislation, meaning the law became effective upon his signature, with no waiting period. The law has three distinct parts: it expands California’s supplemental sick leave provisions for food sector workers, creates a new handwashing break requirement for food sector employees, and creates a pilot mediation program for small employers.

AB-1867 is part of California’s larger effort to fill perceived gaps in paid sick leave mandates due to COVID-19.  In April 2020, Governor Newsom issued Executive ...

By January 1, 2021, all California employers with five or more employees are required to have provided interactive harassment prevention training to all employees in California, both supervisory and non-supervisory. 

Recently, California’s Department of Fair Employment and Housing (DFEH) released supervisory on-line harassment prevention training, which can be found here. Supervisory employees must receive at least two hours interactive harassment prevention training, which must be provided every two years, and within six months of hire or promotion to supervisory ...

On August 31, 2020, California introduced a statewide blueprint for reopening during the COVID-19 pandemic designed to provide clear guidance and timelines for which industries may safely open. 

The new system is color-coded and has four tiers, with Tier 1 being the highest risk of community disease transmission and Tier 4 the lowest risk. The four tiers are based on two factors: (1) the county’s positivity rate; and (2) the daily new cases for each 100,000 residents.

The tiers are outlined below:

• Tier 1 (purple/widespread): higher than 8% testing positivity rate; more than 7 daily ...

The U.S. Department of Labor has issued new, revised model Family and Medical Leave Act (FMLA) forms and notices.  The new FMLA forms and notices are intended to be more streamlined and convenient, and they include more explanatory language on various FMLA rights and requirements. 

As an examples of the new explanatory language, the Rights and Responsibilities Notice adds information on the substitution of paid leave, the medical certifications of a serious health condition define the term “serious health condition,” and the Eligibility Notice defines the terms “spouse” ...

On August 11, 2020, Nevada Governor Steve Sisolak signed Senate Bill 4, which sets new safety standards for the hospitality industry, provides some protections for hospitality workers, and provides for immunity for businesses who comply with statutory requirements. 

In passing the law, the Governor noted the importance of the travel and tourism industry to the state.  Due to the pandemic, the hospitality industry lost over 130,000 jobs in April and May alone. 

The law creates new safety requirements for the hospitality industry in Nevada. Public accommodation facilities, which ...

On August 8, 2020, U.S. President Donald Trump signed a series of executive orders regarding the COVID-19 pandemic, which may impact certain employers: 

Deferral of certain payroll tax obligations for the period from September 1, 2020 through December 31, 2020: The order directs the Secretary of the Treasury to defer certain employee payroll taxes for bi-weekly wages that are generally less than $4,000.00 (under approximately $104,000.00 annually).

This order delays the 6.2% of wages that employers currently withhold from employee wages in every paycheck that is then paid to ...

On July 21, 2020, the Los Angeles County Board of Supervisors approved a motion to enforce the monitoring of compliance with County health orders by encouraging workers to directly report health code violations through employee “public health councils.” Supervisors Sheila Kuehl and Mark Ridley-Thomas co-authored the motion, which could have a significant impact by placing employees, rather than public health inspectors, at the front lines of enforcing public health orders.

The Board noted that workplace transmission has been a significant factor contributing to the ...

By September 30, 2020, all California companies with more than 100 employees must register with the CalSavers Retirement Savings Program (CalSavers) or certify that they are exempt.

Employers without employer retirement plans must register to begin offering the state-mandated employer retirement plan to their employees.  Those employers offering retirement plans to their employees need only certify as exempt.  

The link to the CalSaver website to register or certify as exempt is here.

Smaller employers have phased-in deadlines to register or certify as exempt. Employers with ...

On July 21, 2020, the Los Angeles County Board of Supervisors approved a motion to enforce the monitoring of compliance with County health orders by encouraging workers to directly report health code violations through employee “public health councils.” Supervisors Sheila Kuehl and Mark Ridley-Thomas co-authored the motion, which could have a significant impact by placing employees, rather than public health inspectors, at the front lines of enforcing public health orders.

The Board noted that workplace transmission has been a significant factor contributing to the ...

The United States Department of Labor (DOL) issued new model COBRA Notices primarily to highlight that an individual may enroll in Medicare instead of COBRA continuation coverage after his or her group health plan coverage ends. The new COBRA model notices point out that it may be advantageous to enroll in Medicare before, or instead of, electing COBRA. They also explain that if an individual is eligible for both COBRA and Medicare, electing COBRA coverage may impact enrollment into Medicare as well as certain costs to the individual. 

The model general notice for single-employer ...

Adding to an already impressive list of industry specific guidelines, the California Department of Health and the Department of Industrial Relations/Cal-OSHA have issued an Industry Guidance for Restaurants Providing Outdoor Dining, Takeout, Drive-Through, and Delivery. Restaurants are instructed to consult the COVID-19 County Roadmap for more information on reopening in particular counties within the state. In addition, the guidance reminds all business owners that the guidance is not dispositive and that other state and local health orders and guidelines may apply ...

On July 13, 2020, Governor Gavin Newsom announced a significant rollback of California’s reopening and ordered 30 of the most populous counties in the state to cease indoor operations. The order includes closing indoor operations at malls, offices for non-critical sectors, places of worships, hair salons, fitness centers and personal care services. The affected counties as of July 13, 2020 include Los Angeles, San Diego, Ventura, Santa Barbara and Orange. A full list is available here. 

Additionally, Newsom issued a statewide order closing indoor operations for restaurants ...

In his press conference today, July 1, 2020, Governor Gavin Newsom ordered restaurants in Los Angeles County and 18 other CA counties to cease indoor dining operations for at least the next 3 weeks. The order was in response to a large increase in COVID-19 positivity and hospitalizations in these counties.

Restaurants may remain open for outdoor dining, pick-up or delivery. On Sunday, June 28th, the State also ordered bars to close in Los Angeles and 6 other counties.

In addition to indoor dining, wineries and tasting rooms, movie theaters, indoor family entertainment businesses ...

By January 1, 2021, California employers with five or more employees are required to have provided interactive harassment prevention training to all employees in California, both supervisory and non-supervisory. After considerable delay, California’s Department of Fair Employment and Housing (DFEH) recently released online training to meet the harassment training requirement for non-supervisors. The training is provided at no cost to employers. 

The non-supervisory online harassment prevention training can be found here. Online training for non-supervisors is ...

In a landmark 6-3 ruling, the Supreme Court of the United States held that workplace discrimination on the basis of an employee’s LGBTQ status is in violation of Title VII of the Civil Rights Act of 1964.  The Court’s opinion can be found here.

Until now, workers in more than half the states lacked legal protection from employment discrimination based on their LGBTQ status.  The Court’s decision rests on a strict reading of Title VII’s prohibition of discrimination on the basis of “sex”.  It concludes that extending that “sex” prohibition to include discrimination on the ...

Los Angeles County issued protocols that the non-essential businesses listed below must follow in connection with reopening. 

Prior to reopening, each of these businesses must implement and complete the applicable protocol found below, and post a copy of the completed protocol at all public entrances to its facility.

Additionally, each protocol requires certain signage be posted to alert the public about various COVID-19 safety measures that must be followed, and that similar information be included on the business website.  In some cases, businesses must communicate to their ...

Beginning July 1, 2020, the maximum benefit period under California’s Paid Family Leave (PFL) program will increase from 6 weeks to 8 weeks during any 12-month period.  The PFL program, which is a part of California’s state disability insurance program, provides partial wage replacement benefits to workers who take time off from work:

• To care for a seriously ill child, spouse, parent, grandparent, grandchild, sibling, or domestic partner; or
• To bond with a minor child within one year of the birth or placement of the child through foster care or adoption.

The PFL program does not ...

Running out of things to do during the COVID-19 crisis? 

You are in luck. Yesterday the California Department of Education released a lengthy, 55 page guidance on the reopening of public schools. You can find the guidebook for the safe reopening of California's public schools here. Enjoy!

This blog is presented under protest by the law firm of Ervin Cohen & Jessup LLP. It is essentially the random thoughts and opinions of someone who lives in the trenches of the war that often is employment law–he/she may well be a little shell-shocked. So if you are thinking “woohoo, I just landed some ...

To assist California business owners with insurance coverage questions concerning damages relating to the current civil unrest, the Department of Insurance issued a Fact Sheet, found here.

The Fact Sheet includes the types of coverage that may apply to damages due to civil unrest and tips for businesses with claims.

This blog is presented under protest by the law firm of Ervin Cohen & Jessup LLP. It is essentially the random thoughts and opinions of someone who lives in the trenches of the war that often is employment law–he/she may well be a little shell-shocked. So if you are thinking ...

On Friday, May 29^th, both the City of Los Angeles and the County of Los Angeles announced that dine-in restaurants are permitted to reopen. Both the city and county have also issued guidelines for restaurants to follow in the reopening of their dine-in operations.

The County of Los Angeles’ protocols for the reopening of on-site dining for restaurants and other permanent retail food operations are found here.

At this time, bars are not permitted to reopen except for food take-out orders, but they are covered in the city’s guidelines for planning purposes. Further, the State of ...

Today, May 29, 2020, the County of Los Angeles announced that it will move further into Phase 2 reopening by permitting dine-in restaurants, hair salons and barber shops to reopen.  This decision came after the County learned it received a variance from the State of California to allow this action. Los Angeles County has moved at a much slower pace than most California counties due to its higher number of COVID-19 cases and deaths.

 Los Angeles County also announced it will be posting new restaurant guidelines later today.  Restaurants may open for in-house dining when the County posts ...

The Los Angeles County Board of Supervisors has followed the lead of the Los Angeles City Council by passing COVID-19 right of recall and worker retention ordinances that are similar to the City of Los Angeles COVID-19 recall and retention ordinances passed on April 29, 2020. The county right of recall ordinance requires certain janitorial, maintenance, security service and hospitality employers, when rehiring, to offer jobs based on seniority to certain workers laid off during the COVID-19 pandemic. Both ordinances are intended to assist workers in unincorporated areas of Los ...

On Monday, May 18, 2020, Governor Gavin Newson announced relaxed state guidelines for Phase 2 reopening of dine-in restaurants, offices, outdoor museums, shopping centers and malls. The relaxed guidelines would permit 53 of California’s 58 counties to move into Phase 2 reopening. However, with its higher infection and death rate, it is not expected that Los Angeles County will be ready for Phase 2 in the immediate future. 

Instead of the prior guideline of having no deaths within the last 14 days, under the new state guidelines, COVID-19 hospitalizations cannot increase more than ...

This week Governor Newsom announced new guidelines for the Phase 2 reopening of dine-in restaurants, offices, outdoor museums, shopping centers and malls. The date for reopening of these establishments will be determined by the COVID-19-related circumstances of the county in which the business is located. To reopen dine-in restaurants, offices and malls, a county must receive a variance from the state, through self-certification and state approval. 

Specifically, a California county seeking to start Phase 2 must prove to the state: that it has no new COVID-19 case per 10,000 ...

On Wednesday, May 13, 2020, Los Angeles County issued an updated “Safer at Home” order that amends and supersedes prior Los Angeles County Health Officer orders. The new order is intended to partially move Los Angeles County into the second stage of reopening businesses.

The businesses now permitted to reopen can do so only for curbside, door side, or other outdoor or outside pick-up, or delivery.  Members of the public cannot be permitted inside these businesses.  Businesses permitted to open on this basis are retailers not located in indoor malls or shopping centers, and ...

On May 4, the U.S. Department of Labor (DOL) and Internal Revenue Service (IRS) jointly issued a new final rule that temporarily extends time frames in which eligible employees can elect COBRA health insurance coverage and begin making COBRA premium payments. The final rule extends COBRA deadlines to 60 days after the end of the declared COVID-19 national emergency, or a different date if the DOL and IRS provide a different date in future guidance.

To help participants and beneficiaries understand the new rule, the DOL also posted a new set of FAQs.     

This blog is presented under protest by ...

Earlier today, Gov. Gavin Newsom signed an executive order extending workers’ compensation insurance coverage to essential workers who test positive for coronavirus or are diagnosed with COVID-19 by a physician. The order establishes a rebuttable presumption that any essential worker contracted the virus on the job and is, therefore, eligible for workers’ compensation benefits. This presumption effectively places the burden of proof on companies or insurers to prove that the essential worker did not get sick at work in order to permissibly deny coverage. The order applies ...

On Wednesday, April 29, 2020, the Los Angeles City Council passed a COVID-19 Right of Recall Ordinance requiring certain hospitality, janitorial, property management and tourism employers, when rehiring, to offer jobs based on seniority to certain workers laid off during the COVID-19 pandemic.  At the same time, the council also passed a COVID-19 Worker Retention Ordinance. Both ordinances are intended to assist workers in sectors which have been especially hard hit by the coronavirus crisis and both ordinances had been approved in concept in the prior week subject only to ...

To address fears that food sector workers are more likely to work when sick, Governor Gavin Newsom recently issued Executive Order N-51-20, which requires large food sector employers (500+ employees in U.S.) to provide up to 2 weeks of supplemental paid sick leave to workers, including independent contractors, who are unable to work due to the following COVID-19-related reasons:

• the worker is subject to a federal, state, or local quarantine or isolation order related to COVID-19;
• the worker is advised by a health care provider to self-quarantine or self-isolate due to concerns ...

On Tuesday, May 12th, the Los Angeles County Board of Supervisors will be considering a countywide Right of Recall and Worker Retention ordinance. As with the Citywide Right of Recall and Worker Retention ordinances, these policies would negatively impact businesses, prevent them from making decisions based on their financial situation, and lengthen our road to recovery after the COVID-19 pandemic.

Click here to read the coalition letter from the Valley Industry & Commerce Association.

Call and email the Board of Supervisors

Supervisor Hilda Solis: First District; ...

In a move which largely mirrors the steps taken by the City of Los Angeles, the Los Angeles County Board of Supervisors has voted to extend certain paid sick leave requirements of the Families First Coronavirus Response Act to employees working within Los Angeles County for private employers that employ 500 or more persons in the United States. The ordinance is effective immediately and will expire on December 31, 2020. 

The ordinance applies to all persons who perform work for a covered employer within the County of Los Angeles and specifies that all such persons are presumed to be ...

On Wednesday, April 22^nd, the Los Angeles City Council voted to have a right of recall ordinance drafted that would require certain hospitality, janitorial, property management and tourism employers when rehiring to notify workers laid off during the COVID-19 pandemic.

Under the proposed ordinance, a business would be required to provide notices to laid-off workers that it is rehiring, and to rehire based on seniority. Workers would have a 10-day period in which to respond, and an employer would have 15 days to respond to employee claims that they had inadequate opportunity to be ...

Employers can take employees’ temperatures to respond to and manage the COVID-19 pandemic. The Equal Employment Opportunity Commission has stated in its updated guidance that the COVID-19 crisis permits employers to measure employees’ body temperatures before allowing them to enter the worksite. Indeed, the Centers for Disease Control recommends in its community mitigation framework that workplaces in areas with “minimal to moderate risk” implement regular temperature and respiratory checks. 

How to Conduct Temperature Checks

As for the precise temperature to ...

As we recently reported, the Los Angeles City Council is considering implementing hiring restrictions and requirements on the private sector.  If passed, these ordinances with exponentially increase the difficulties already faced by businesses throughout Los Angeles as a result of the COVID-19 crisis.  There are several motions pending, each of which will adversely impact employers.  Given the importance of the issue, we are reposting the following from the Beverly Hills Chamber of Commerce:

Action Alert! On Wednesday, April 22 at 10 am, the Los Angeles City Council is meeting to ...

The message below has been reposted from the Valley Industry & Commerce Association.

On Wednesday, April 22, the Los Angeles City Council will be considering a Right of Recall ordinance that is exclusively directed towards businesses in the hospitality industry - including hotels, janitorial, stadiums, airport services and event centers.

Hospitality Right of Recall and Worker Retention Ordinance

The Hospitality Recall Ordinance would:

• Require businesses that have discharged employees to offer those discharged employees all positions which become available for which the ...

You have a business that is permitted to continue operations and is not subject to a “stay at home” order.  You have informed employees of this fact.  You have even provided employees with a letter setting forth specific information on why they are allowed to continue working and traveling to and from work to show authorities or anyone else who might ask.  Nevertheless, you have one or more employees who do not want to work because of COVID-19 and are asking to stay home.  What do you do?

If you are a business with 500 or fewer employees, you first need to find out why these employees are asking to ...

To calculate the amount to be paid for employee leave under the Families First Coronavirus Response Act, it is clear that employees who take advantage of FFCRA paid leave must be paid what they would ordinarily earn in a workweek. Their ordinary workweek earnings are based on their regular rate of pay, including the base rate for any overtime hours worked, but not any premium pay. An employee should only receive paid leave for the hours they are normally scheduled to work. Accordingly, an employer must first determine both the regular rate of pay and the appropriate work schedule in order ...

If your business has fewer than 50 employees, you may qualify for the small business exemption to a portion of the Families First Coronavirus Response Act (FFCRA).  Specifically, small businesses with fewer than 50 employees may be exempt from the requirement to provide leave due to school closings or childcare unavailability if those FFCRA leave requirements would jeopardize the viability of the business as a going concern.  In other words, the small business exemption only excuses the employer from providing paid leave for reason no. 5 on the official FFCRA Notice, which all ...

The Los Angeles City Council has voted to extend the requirements of the Families First Coronavirus Response Act to employees working within the City of Los Angeles for employers that employ 500 or more persons in the United States. The ordinance applies to all employees who have been employed with the same employer from February 3, 2020 through March 4, 2020, and provides up to 80 hours of paid sick leave benefits to full-time workers calculated based on the employee’s average two week pay over the period of February 3, 2020 through March 4, 2020. Employees who work less than 40 hours per ...

My grandmother used to say that one of the biggest lies told in America was the statement: “I’m from the government, and I’m here to help”. Grandma was a bit of a pessimist. But the Department of Labor has issued, and continues to add segments to, a very helpful and rather lengthy question and answer page that provides guidance for employers on implementing the paid sick and family leave requirements under the new Families First Coronavirus Response Act, set to take effect on April 1, 2020. This information is particularly useful in light of the fact that the DOL has not yet provided ...

At 880 pages in length, “comprehensive” does not seem to do it justice. But the Coronavirus Aid, Relief and Economic Security Act is, in a word, comprehensive. Coming on the heels of the Families First Coronavirus Response Act which focused primarily on relief for employees, the CARES Act seeks to provide both individuals and businesses with immediate relief, and a path forward, as we look to a future following the COVID-19 pandemic.

Individual Relief

Many individuals will receive a check directly from the government. Specifically, individual adults making less than $75,000 in ...

The below message has been posted with permission from the Beverly Hills Chamber of Commerce. 

Tomorrow, Friday, March 27^th, the Los Angeles City Council is having an emergency remote meeting to consider a new policy to require businesses to lay-off and rehire employees businesses based on seniority.  Under this proposal, businesses need to have “just cause” to terminate an employee, businesses must lay off employees based on seniority and if businesses recall employees it must be done based on seniority.

Click here to see Item No. 2 on the LA City Council ...

The Department of Labor released the required notice for the Families First Coronavirus Response Act today.  All employers covered by the FFCRA must post the notice in a conspicuous place to advise all current employees of their rights under the Act.  The FFCRA, which was passed by Congress and signed by President Trump last week, expands employee leave laws in response to the COVID-19 crisis.  (For more information on the FFCRA, see earlier “What Employers Need To Know About The Families-First Coronavirus Response Act” article on this blog.) 

Since many workforces are currently ...

To assist California employers in understanding the possible application of benefits available to workers in response to the COVID-19 crisis under both state and federal law, we provide the following handy chart:

Click Here to view a print-friendly version of the chart. 

There is a fair amount of confusion among California businesses regarding Governor Newsom’s “stay home” order and which facilities should remain open.  Unfortunately, Executive Order N-33-20 does not provide much guidance. It does, however, refer to the list of federal government's critical infrastructure sectors posted by the Department of Homeland Security and except those individuals “needed to maintain the continuity of operations” of those sectors. In addition, the state’s website clarifies that critical government services, schools, childcare, and ...

The coronavirus pandemic has presented challenges for employers trying to remain responsive to the crisis but also struggling to absorb the burden it has imposed on their businesses. With much anxiety, employers have also been anticipating a new law, H.R. 6201, to go into effect that would expand family and medical leave requirements to cover COVID-19. As of yesterday, Congress passed and President Trump signed the final version of H.R. 6201, titled the Families First Coronavirus Response Act.

The Act will take effect on April 1, 2020 and will remain effective until December 31 ...

As employers struggle to cope with the impact of coronavirus 2019 (COVID-19), we have encountered a surprising number of employers who have been led to believe that a “furlough” is an employer option that can be implemented without regard for various laws that might otherwise apply. It is not. To be blunt, while the term “furlough” seems to be a more employee-friendly word for what many employers are doing, there is no magic to it. Indeed, until the California Legislature or Congress pass more comprehensive COVID-19 relief legislation, employers must still comply with all ...

In an effort to address some of the issues presented by California’s WARN Act in connection with the COVID-19 crisis, Governor Newsom has issued Executive Order N-31-20 partially suspending certain provisions of Cal-WARN.  As we reported here, the wording of California’s WARN Act exposes employers temporarily closing or engaging in layoffs due to COVID-19 to liability for back pay, the value of benefits, penalties of $500 per day and attorneys’ fees.  Unlike the federal WARN Act, California’s version has no exception for unforeseen business circumstances and requires ...