News

New California ABC Test for Independent Contractors

Many employers within California rely on what has been a tried and true test to determine whether a person providing “service” or work to their company can be correctly classified as an Independent Contractor. In the recent California Supreme Court ruling, Dynamex Operations West v. Supreme Court filed 4/30/18, this process has been significantly changed. With this ruling, the California Supreme Court established that a test known as the “ABC Test” will be used to make the determination of whether or not any individual WILL be classified as an employee, or the person may be classified as an Independent Contractor. The ABC test is a three prong analysis of...
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U.S. Supreme Court Ruling – Class Action Waiver in Arbitration Agreements

A recent U.S. Supreme court ruling, Epic Systems Corp v. Lewis upheld that class and collective action waivers within an Arbitration Agreement are enforceable under the Federal Arbitration Act. Further the court concluded that such stipulations within an Arbitration Agreement do not violate Section 7 of the National Labor Relations Act. This decision sets a precedent to allow employers to require employees to sign an arbitration agreement as a condition of employment, and for the employer to enforce the arbitration process for resolution of most employment issues. Employers should review their existing arbitration agreements to ensure that they contain the correct and adequate language to hold up under...
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2018 California Legal Update

2018 Legal Update Recap As we ring in the new year, employers should keep an eye on the many changes in law going into effect as of January 1, 2018. Below is a recap of the changes. There may be additional changes coming beyond what I am recapping here for you. California AB-1008 §12952: This law makes changes to the California Fair Employment and Housing (DFEH) regulations for employers of 5 or more employees, as follows: The bill attempts to reduce barriers for persons seeking employment by prohibiting any form of question regarding criminal background, convictions etc., whether verbal or on a pre-employment application or fact discovery process prior to...
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New I-9 Form Goes Into Effect in January 2017

The US Citizenship and Immigration Service (USCIS) has issued a new I-9 form which employers must begin using effective January 22, 2017. This new form was designed to facilitate the completion of the I-9 form online, and also made some changes in the questions asked of the employee regarding other names used, which was changed to "other last names" used. You can find the new form by clicking here....
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Fair Labor Standard Act Increase in Exempt Salary Requirement

On May 18, 2016, President Obama, along with Secretary Perez of the Federal Department of Labor, announced a new minimum compensation amount for employees who are classified as an exempt employee, effective December 1, 2016. With this announcement, the minimum salary for an employee to be classified as exempt by the Federal Fair Labor Standards Act (FLSA) was increased from $455.00 per week to $913.00 per week, which is equivalent to $47,476.00 per year. Although in the past, the minimum amount set by the Federal FLSA has had little impact on employers in California, the current change will result in an increase higher than the current California  standard...
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New Federal DOL Regulations Published

The much talked about U.S. Department of Labor Final Regulations for exempt employment classification has now been published, and will have a significant effect on employers in California. While California currently has a regulation that requires employer to pay a correctly classified Executive, Administrative or Profession exempt employee no less than twice minimum wage, the new Federal Department of Labor (DOL) regulations will exceed the California regulation. In the past, employers within California have not been required to adhere to the Federal DOL minimum threshold because California’s requirements have exceeded the federal regulations. However, California employers will now have to adhere to the higher of the...
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California Minimum Wage Starting 2017

As recently reported through new channels, the State of California legislature just passed Senate Bill SB 3 which will incrementally increase minimum wage in California over a 6 year period of time. Following this increase period, the minimum wage will continue to increase annually based on a set formula roughly based on the Consumer Price Index (CPI).The first increase will go into effect on 1/1/2017 for employers with 26 or more employees, taking the minimum wage for these employers to 10.50 per hour. Employers with 25 or less employees will begin to see the increase as of 1/1/2018. The increases are shown on the table below:

New Regulations-Harassment, Discrimination and Retaliation

The State of California has adopted new Regulations-Harassment, Discrimination and Retaliation (2 CCR § 11023) which will go into effect as of April 1, 2016, and will affect California employers who have 5 or more employees. The new regulations will require the covered California employers to comply with the new regulations by providing each employee, and newly hired employee with an informational pamphlet issued by the Department or Fair Housing an Employment (form DFEH-185) in English and/or Spanish, as well as in any other language that is spoken as a first language by 10% or more of the employees in the workplace. In addition to this informational pamphlet,...
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Changes Affecting Employers for 2016

New Laws and Changes for 2016 With the start of 2016, employers should be aware of many new requirements. Below is an outline of significant changes that employers should be aware of: AB 304 Paid Sick Leave This law provides additional clarification in the alternative methods in which employers may accrue the Paid Sick Leave, provided that all other provisions of the law are met, such as the ability for the employee to determine the amount of time and when they need to take the time off for Paid Sick Leave. The new revisions under AB 304 allow employers who provide employees with unlimited sick time to report this on...
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