If your company has employees who are classified as exempt, but are earning commissions it may be time to reevaluate whether those employees are truly exempt under recent case law. The California Court of Appeal recently issued a decision clarifying that a salary based solely upon commissions does not constitute a “salary” for purposes of…
Recently, the California Division of Occupation Safety and Health (Cal/OSHA) announced proposed temporary COVID-19 regulations, which are up for review and vote on November 19, 2020. The regulations would apply to all employees and places of employment with very limited exceptions, which include, worksites with one employee who does not have contact with other persons,…
On September 4, 2020, Governor Newsom signed into law AB 2257, which exempts several additional occupations from the ABC Test under AB 5, and attempts to further clarify the distinction between employer-employee relationships and professionals that run their own independent businesses. AB 2257 is a lengthy bill that made several significant changes. We have summarized…
In an effort to mitigate the effects of COVID-19 the California Legislature has been busy passing bills that provide further job protection and rights for employees. SB 1383 passed the Assembly on September 1, 2020, and awaits the Governor’s signature. SB 1383 amends the California Family Rights Act (CFRA), to expand its coverage to millions…
People of the State of California v. Uber / Lyft – filed August 10, 2020, case number CGC-20-584402, in the California Superior Court – San Francisco The gig-economy was dealt a major blow in a recent court ruling against Uber and Lyft. The State of California filed an action seeking injunctive relief, restitution, and penalties…
Yesterday, Governor Gavin Newsom signed an executive order creating a rebuttable presumption that a California employee who contracts COVID-19 contracted it in the course of their employment. This would entitle the employee to workers’ compensation benefits, unless the employer successfully proved they did not contract it at work. In a normal workers’ compensation claim, the…
On April 6, 2020, prompted by the COVID-19 pandemic, California Insurance Commissioner, Ricardo Lara, sent a formal Notice to workers’ compensation insurers reminding them that all workers are entitled to protection under California’s workers’ compensation laws, regardless of immigration status. More importantly, he added: “Workers’ compensation injuries caused by COVID-19 that arise out of and occur in the course of employment are compensable to the same extent as any…
We understand these are extremely uncertain times with the rapid spread of COVID-19 impacting virtually every facet of business and resulting in a wave of emergency legislation. Recently, the Families First Coronavirus Response Act (“FFCRA”) was passed requiring employers with fewer than 500 employees to provide employees with paid leave in certain circumstances related to…
Support for AB 5 and its “ABC test” aimed at classifying more workers as employees rather than independent contractors appears to be growing due to the Coronavirus pandemic. The federal, state and local government restriction on businesses and mobility have vastly limited the availability of work. Independent contractors, who are not entitled to unemployment benefits…
The Court of Appeal concluded that many of the disputed wage and hour claims in an underlying lawsuit are potentially subject to coverage under an employment practices liability insurance (“EPLI”) policy despite a wage and hour exclusion. Southern California Pizza Company, LLC (“SCPC”) was named as a defendant in a putative class action lawsuit alleging…