If you were hoping that AB-5 (the CA statute codifying the ABC standard into widespread law) would be held invalid, enjoined, or would just fall off a cliff, it is time to face reality. AB-5 is alive and well, and effective January 1, 2020. That means any California employer who still relies on independent contractors
Service Charges vs. Gratuities and Why It Matters
Attention hospitality employers. Is that charge you add to a guest check a service charge (typically a set amount added to a guest check in lieu of a tip)? Or an automatic gratuity (such as a set amount for a party of 8 or more)? Or a true tip/gratuity (an actual discretionary amount left by
Top 10 List of California’s Newest Employment Laws
Our Labor & Employment team has been busy this fall! As loyal readers, your inboxes have been filled with our updates on all the changes to California employment laws. This legislative session ended on October 14th, so we thought it would be helpful to recap the changes you should have on your radars. These new
Preserving Your Franchise in the Face of AB-5 (Free Webinar)
How will AB-5 impact franchise relationships in California? What steps can franchisors take to best protect their interests in California in a post-Dynamex, post AB-5 landscape? These are some of the questions Tami McKnew and I will be answering in a Webinar on October 28, 2019. It’s free, and we hope you will join
9th Circuit Says McDonald’s Doesn’t Employ Franchisee’s Employees
In Salazar v. McDonald’s Corp., the plaintiff argued that McDonald’s, a franchisor of fast food restaurants, was liable for wage and hour violations as a “joint employer” of its franchisees’ employees. Last week, a panel of the federal Ninth Circuit Court of Appeals rejected that argument.
The court relied on the California Supreme Court’s
CA Supreme Court Cuts Back on PAGA Recovery
In a departure from decisions in recent years, the California high court has finally imposed some limits on the otherwise expansive reach of the Private Attorneys General Act, Labor Code § 2698, et seq. (“PAGA”). The legislation from 2002 allows one “aggrieved” employee to bring a representative action on behalf of all employees to collect
AB 5 Will Reshape Worker Classifications
Today, Governor Newsom signed AB 5 into law, drastically altering how millions of Californians are paid and drastically altering the legal analysis involved in distinguishing between “employees” and “independent contractors.” Daniel Kitzes and Brian Casillas have prepared a thoughtful analysis of this new law. You can read it here.
If you have workers in
CA Supreme Court Continues its Assault on Arbitration Agreements
“Unconscionability” is alive and well, as last week the California high Court renewed its 30-year running dog fight with the U.S. Supreme Court over the enforceability of arbitration agreements. In One Toyota of Oakland v. Kho (“OTO”), the California Court struck down an arbitration agreement as “unconscionable,” and allowed an employee to proceed
Reminder: July 1 Minimum Wage Increases in a City Near You
July may seem like a sleepy summer month, but don’t forget — for many cities in California it is the time for minimum wage increases. Your payroll company may notify you and take care of it, but if you handle payroll directly, then please take note.
As of July 1st, the following cities
Roadmap to Expansion – Independent Contractors From Top to Bottom
The California Supreme Court decision in Dynamex Operations West, Inc. v. Superior Court continues to change the legal landscape. On May 2, 2019, the 9th Circuit Court of Appeal revived a decade old lawsuit, Vazquez v. Jan-Pro Franchising Int’l., applying Dynamex’s ABC test retroactively and dismissing substantial due process concerns. While dismissing the