1. Federal Exempt Salary Requirement on Hold; California Increase The December 1, 2016 increase in the minimum salary level for exempt employees was put on hold nationwide at the decision of a Texas Judge. The scheduled increase was set to raise the salary threshold under which employers designate workers as “exempt” from overtime and breaks from $455 per week ($23,660 annually) to $921 per week ($47,892 annually). For now, employers should ensure compliance with the new California minimum salary level for exempt…

Generally, an employer is liable for its employee’s actions while the employee is acting within the scope of his or her employment. Activities such as traveling to and from work are considered to be outside the scope of employment, and therefore, employers are not liable for employee actions during commutes. This is known as the “going and coming” rule. The rationale for this rule is that the employee is not providing a benefit to the employer during the commute so…

As of last week, a federal judge in Texas ruled that the anticipated December 1, 2016 increase in the minimum salary level for exempt employees is to be put on hold - nationwide. The scheduled increase was set to raise the salary threshold under which employers designated workers as “exempt” from overtime and breaks from $455 per week ($23,660 annually) to $921 per week ($47,892 annually). Twenty-one states and the U.S. Chamber of Commerce brought suit claiming that the Department of…

Most employers are aware that timing requirements exist regarding the payment of final wages to employees who quit or are terminated from the company. However, employers now need to know that they owe the same prompt payment to employees who retire from the company according to a recent decision by the California Supreme Court. There are different requirements placed on employers dependent on how the relationship with the employee ends. On one hand, if an employer discharges the employee, the employer…

Can a California employer be liable for failing to accommodate an employee’s request to modify his work schedule to permit him to care for a disabled family member? The court has recently said yes, an employer can be held liable for this behavior under the Fair Employment and Housing Act. In a recent case, a delivery company hired an employee whose son is in need of a kidney transplant. The son requires daily in-home dialysis treatment that only the employee can…

Last week, California governor Jerry Brown announced a deal to raise state minimum wage by 50 percent - from $10 to $15 per hour - by 2022.  This wage increase raises wages for nearly 43% of California’s workforce. Brown’s decision for the increase was motivated by the belief that voters would pass such a proposal if it was included on the November ballot. Under the deal, minimum wage would rise to $10.50 in 2017, $11 in 2018, and a dollar each…

The Fair Employment and Housing Council amended the Fair Employment and Housing Act, and compliance is required by April 1, 2016. In addition to the already-existing requirement for employers to distribute the FEHA brochure on sexual harassment, employers must now provide written harassment, discrimination and retaliation prevention policies. These policies must: be in writing, list the categories of protected workers, indicate that the law prohibits supervisors, managers, coworkers and third parties who come into contact with an employee from engaging in…

Attention employers: have you reviewed your employment contracts lately? They may include a provision that violates federal labor law. Last week, the National Labor Relations Board instructed the restaurant chain Waffle House Inc. to remove class action waivers from its employee agreements. Beginning in 2013, Waffle House required its employees to sign arbitration agreements with class action waivers as a condition of employment. The National Labor Relationship Board has now decided that Waffle House has engaged in unfair labor practices by…

We can anticipate a flurry of new labor rules and regulations as President Obama closes out his final term. Presidents often change regulations on their way out of office, and President Obama is no exception. Here are a few of the rules proposed for enactment in the next year: Fair Pay and Safe Workplaces Rule: This executive order requires government contractors to report labor law violations. While some say this is a “blacklisting rule” because of the potential cost to business…

In our ever-evolving workplace, it has become more common for employees to have two or more employers. This can happen when companies use staffing agencies, independent contractors, or professional employer organizations. The Department of Labor (“DOL”) recently issued an Administrator’s Interpretation dealing with co-employer liability. The following are the takeaways from the interpretation: The employee’s hours worked for both of the joint employers during the workweek are aggregated and considered to be “one employment.” This means both employers are responsible for overtime…