In recent news, the presiding judge in California Superior Court considered the question of confidentiality agreements and specifically whether they are governed by California state law or federal law. History of the Case: Looking at Google's Confidentiality Agreements Do Google's confidentiality agreements break labor law? John Doe, a Google employee, claimed Google's "broad" nondisclosure agreement barred him from speaking about his job to other potential employers, which he argued amounted to a non-compete clause in violation of California labor law. The plaintiff also alleges that Google's NDAs block whistleblowing and discussing pay rates with co-workers. The Defendant: Google When the judge found that Google's NDAs effectively amount to illegal non-compete agreements, the search engine giant and other Big Tech firms with similar policies and procedures saw a significant setback. The Ruling: Big Corporations & Confidentiality Agreements A California judge recently agreed with the plaintiff that Google's NDAs equate to a non-compete agreement violating labor law.…Read More
Losing a job is difficult, and upsetting regardless of why it happened, but sometimes it is a violation of employment law. But how do you know the difference? Did you get fired or are you a victim of wrongful termination? Losing a Job is High Stress and High Emotion: When you worked hard to get a job, worked at the job, and felt secure in your position, receiving a termination notice can be a very stressful situation. For many, losing a job is also a time of high emotion. You might be provided with a severance package, and plenty of notice. Or you may be asked to gather your things and go straight to your car. Regardless of the details of how it happens, you had a job, and then someone decided you don’t anymore. The loss results in stress and general upset; it’s unavoidable. Were You Let Go or Were You Fired or Were…Read More
As 2021 ends and 2022 begins, COVID-19 continues to significantly impact all aspects of life, including the workplace. Paid sick leave (PSL) and workplace safety are once again at the forefront of the effects. *Paid Sick Leave For many California workers, the COVID-19 pandemic has necessitated time away from work. Under state law at the time that the pandemic began, workers had only three days of paid sick leave available. Senate Bill 95 and federal tax credits expired on October 1st. SB 95 provided workers with two weeks of PSL if they were infected with the virus or needed to care for relatives or children who were infected. A California Division of Occupational Safety and Health emergency rule, renewed December 16th, allowed some workers to be paid for 10 days if they become infected with or were exposed to the virus. However, this rule did not apply to leave to care for sick relatives or children. Also, coverage…Read More
As employers throughout the country experience crippling labor shortages, some are turning to former employees, at least, temporarily to solve the problem. The Internal Revenue Service (IRS) has facilitated this process by removing obstacles that may have prevented employers from rehiring retirees and discouraged workers from continuing to work after reaching retirement age. The IRS recently provided guidance with Frequently-Asked Questions (FAQ) on two issues that relate to the payment of retirement benefits to employees who continue to work after reaching retirement age or when rehired after retirement. The first issue clarified by the IRS in this guidance occurs when an employee retires and begins to receive retirement benefits from a qualified pension or other retirement plans. IRS rules for plan qualification generally require that the worker’s retirement is a bona fide retirement for the individual to receive retirement benefits. These rules apply to plans that do not permit in-service withdrawals of retirement benefits, Some…Read More
In October 2021, the U.S. Chamber of Commerce asked the Supreme Court not to overturn the Seventh Circuit’s dismissal of a lawsuit initially filed by Northwestern University workers. The Chamber said that reviving the lawsuit would increase the recent upsurge of lawsuits under ERISA. In April Hughes v. Northwestern University, Northwestern University retirement plan participants filed a class-action lawsuit charging the school with mismanaging their retirement savings. The U.S. Chamber of Commerce, American Council of Life Insurers, American Property Casualty Insurance Association, Business Roundtable, ERISA Industry Committee, Professional Liability Underwriting Society, and Securities Industry and Financial Markets Association joined in the amicus curiae brief in the Hughes case. In the brief, the groups claimed that ERISA suits have substantially increased in the last two decades and that the Supreme Court should only allow class actions under the Employee Retirement Income Security Act (ERISA) to proceed to the discovery phase if they contain credible allegations. "What…Read More
In 2019, Governor Newsom signed AB 5 into law in September of 2019. It added § 2750.3 to the California Labor Code which adopted and broadened the common law "ABC Test." This test determines how to classify an "employee" under the California Labor Code the California Unemployment Insurance Code, and for purposes related to Industrial Welfare Commission wage orders. The law became effective on January 1, 2020. However, different timeframes apply depending on the circumstances. Here are answers to some frequently asked questions about independent contractors under California law. Why is the Classification of Workers Important? An independent contractor has different legal rights and obligations than an employee. The distinction may have extensive consequences for workers and business enterprises. Employees are entitled to minimum wage, overtime pay, business expense reimbursements, and other vital benefits. Employers that misclassify workers as independent contractors avoid paying wages and overtime premiums, as well as providing meal and rest breaks.…Read More
The Worker Adjustment and Retraining Notification Act (the “WARN Act” or “Act”) was enacted on August 4, 1988, and became effective on February 4, 1989, to protect American workers. The Act offers protection to workers, their families, and communities by requiring employers to provide notice 60 days in advance of covered plant closings and covered mass layoffs. Employers are legally required to provide this notice to either affected workers or their representatives, such as a labor union, to the State dislocated worker unit, and to the appropriate unit of local government. Employers are covered by the WARN Act if they have 100 or more employees. This number does not include employees who have worked less than 6 months in the last 12 months and employees who work an average of fewer than 20 hours a week. Employees entitled to notice under the WARN Act include hourly and salaried workers, as well as supervisory and managerial employees.…Read More
California law in Labor Code § 351 prohibits employers and their agents from sharing or keeping any portion of a tip or gratuity left for or given to one or more employees by customers. it is also illegal for employers to make wage deductions from gratuities, as well as illegal to use them as direct or indirect credits against an employee's wages. A "gratuity" is defined by the California Labor Code as a tip, gratuity, or money that has been paid or given to or left for an employee by a patron of a business over and above the actual amount due for services rendered or for goods, food, drink, articles sold or served to patrons. Under California law, tips or gratuities are the sole property of the employee to whom they are given. Here are answers to some frequently asked questions about the law related to tips and gratuities. *What is a tip or gratuity? A tip is…Read More
California is an employment-at-will state. This means that either an employer or an employee may terminate employment at any time, with or without cause or prior notice. California's Labor Code contains a presumption that employees are employed at will. Yet, even at-will employees are protected by state and federal wrongful termination laws. The burden of proof is on the employee to show that the discharge was wrongful and, therefore, illegal. Wrongful termination is typically defined as the discharge of a worker for an unlawful reason, usually some violation of federal or state law, or public policy. The damages that a worker may recover for a wrongful termination claim in California depend on the lawsuit. Generally, they include lost wages and benefits; compensation for emotional distress, as well as other pain and suffering that arises from the loss of your job; and even attorney’s fees. Over time, California labor law has shaped several exceptions to the…Read More
Employer misclassification of workers as independent contractors has hurt workers and the states where they live and work in many significant ways for several decades. Annually, it costs federal and state government agencies billions of dollars in revenue. Misclassification deprives workers of rights under federal and state labor and employment laws. These include laws that provide anti-discrimination and wage and hour protections, as well as unemployment and workers’ compensation benefits. To thwart employer misclassification, many states have adopted the ABC test to determine employee status. The Protecting the Right to Organize (PRO) Act is federal legislation that would establish the ABC test in federal labor law. The result would be stronger protection for all workers’ right to organize and collectively bargain. The Bill was passed by the House of Representatives in March of 2021. It now is in the Senate. The last decade has seen society’s transcendence to a “gig economy” as services such as…Read More
