As difficult as it is to comply with California’s daily overtime rules, it is easy to forget the one form of flexibility provided to employers — make-up time. This provision allows employers to avoid paying overtime when employees want to take off an equivalent amount of time during the same work week. This Friday’s Five covers what make-up time is, and the general requirements for it to apply under the California Labor Code. What is make-up time? Make-time time can offer employees and employers some flexibility in scheduling.  For example, it offers employees the ability to take time off ..read more

The California Supreme Court’s decision in Naranjo v. Spectrum Security Services, Inc. represents a significant win for employers across the state, providing much-needed clarity on wage statement requirements and the categorization of premium pay for missed breaks. While this ruling alleviates some of the complexities surrounding California’s stringent labor laws, it also serves as a reminder that vigilance in wage and hour issues remains crucial. In this article, we’ll break down the top five takeaways from the court’s decision, highlighting how it benefits employers and emphasizing the ongoi ..read more

As reported last week, the California Attorney General’s office announced that the new state law banning “junk fees” will extend to surcharges at restaurants, marking a significant shift in billing practices in the food industry. Today, the Attorney General finally released the FAQs which were promised last week. Under this interpretation of the Attorney General of Senate Bill 478, which does not mention restaurants or restaurant surcharges, California restaurants will be prohibited from adding service fees to bills starting July 1, 2024—a practice that had been adopted by many eateries as a m ..read more

In the case Jones v. Riot Hospitality Group, the plaintiff, Alyssa Jones sued her former employer, a bar, Riot Hospitality Group, and its owner individually alleging discrimination and other employment tort claims.  Plaintiff was found to have intentionally deleted relevant text messages with co-workers from 2017 and 2018, and coordinated with her witnesses to delete additional messages from 2019 and 2020. These actions were taken with the intent to deprive the defendant, Riot Hospitality Group, of information critical to the litigation. The district court ruled that the deletions could n ..read more

The California attorney general’s office yesterday announced that the new state law banning “junk fees” will extend to surcharges at restaurants, marking a significant shift in billing practices in the food industry. Under Senate Bill 478, effective starting July 1, 2024, California restaurants will be prohibited from adding service fees to bills—a practice that had been adopted by many eateries as a means to support higher wages in lieu of traditional tipping. This legislation comes amid rising concerns over transparency in pricing. The intent, as outlined by a Department of Justice spokesper ..read more

In today’s regulatory environment, conducting background checks in compliance with both federal and state laws is not only a necessity but also a complex legal challenge for employers. This article delves into the intricacies of four major laws that California employers must consider: the federal Fair Credit Reporting Act (FCRA), the California Investigative Consumer Reporting Agencies Act (ICRAA), the California Consumer Credit Reporting Agencies Act (CCRAA), and the California Labor Code. Each of these statutes outlines stringent guidelines for how background checks should be conducted, what ..read more

California is the first state to propose restrictions on an employer’s ability to communicate with employees after work hours.  AB 2751, currently making its way through the California legislature, would give employees the “right to disconnect.”  While this right has been adopted in other countries, such as France, Spain, and Mexico, no state in the U.S. has a specific law addressing this issue.  As discussed below, the proposed law would dramatically change the dynamic on overtime work for both exempt and nonexempt employees in California.  Here are five key issues Califor ..read more

Under California’s pay data reporting obligations, employers with 100 or more employees must prepare and file reports by May 8, 2024.  Employers are required to gather and report employee race and ethnicity data, among other items.  However, many employers do not have records detailing employee’s race and ethnicity, so how can this information be gathered?  California’s Civil Rights Department (CRD) explains in their FAQs, how employers may collect this information. Understand the Reporting Categories The initial step for employers is to understand the seven race/ethnicity categ ..read more

Employers of 100 or more employees to report to the California Civil Rights Department (“CRD”) pay and hours-worked data by establishment, pay band, job category, sex, race, and ethnicity.  The pay data reports are due by May 10, 2024.  This requirement applies to employers even if they are based outside of California, but have one employee (or even one employee hired through a labor contractor such as a staffing agency) working in California or assigned to an establishment in California.    By requiring large employers to report pay data annually the Legislature sought to ..read more

In Cornell v. Berkeley Tennis Club, Plaintiff Ketryn Cornell alleged that her obesity should qualify as a disability under California law. Ketryn Cornell began working part-time for the Berkeley Tennis Club as a lifeguard and pool manager in 1997, while attending college at UC Berkeley. She was employed as a night manager and continued to work at the Club after graduating from college in 2001.  In 2011, she took on additional duties and began working as a night manager, day manager, and tennis court washer. She received positive reviews, merit bonuses, and raises throughout this period. T ..read more