2020 forced millions of employers to adapt their business models to allow employees to work from home and it looks as if this trend will continue indefinitely for many employers. With this in mind, employers should be aware of certain unintended consequences of having a workforce that telecommutes, namely the creation of additional repositories of electronic data that may be discoverable later in litigation. Given that this is the new normal, businesses should take this opportunity to review and update their data retention and litigation hold policies to ensure that they are meeting their obligations and setting themselves up to be successful should this data be needed in the future. Here are four simple steps you can take now to update your protocols.

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Exemption from overtime is dependent on two factors: an employee’s salary and an employee’s duties. Effective October 3, 2020, new regulations issued by Pennsylvania’s Department of Labor and Industry took effect. These regulations began expanding eligibility for overtime based on salary and updating the task-related tests for determining whether an employee is exempt from overtime.

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On September 17, 2020, Governor Newsom approved Senate Bill No. 1159, which creates a framework for COVID-19 related workers’ compensation claims. The new law adds Section 3212.88 to the California Labor Code and applies to employees of employers with 5 or more employees (other than first responders and certain health workers) who test positive during an outbreak at the employee’s specific place of employment. The law will remain effective until January 1, 2023.

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On August 5, 2020, Georgia Governor Kemp signed into law “Charlotte’s Law,” providing additional workplace protections to working mothers who need to express breast milk during working hours. Charlotte’s Law went into effect on August 5, 2020, and applies to all private employers.

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On September 9, California Governor Gavin Newsom signed AB 1867 immediately expanding supplemental paid sick leave (“SPSL”) for COVID-19-related reasons for employers who did not qualify for Families First Coronavirus Response Act (“FFCRA”) because of size. The new law, codified as Labor Code section 248.1 (“LC 248.1”), requires compliance by September 19, 2020.

Here is what you need to know.

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On September 8, 2020, The San Diego City Council passed two ordinances to protect vulnerable workers amidst the pandemic, effective immediately. The COVID-19 Supplemental Paid Sick Leave Ordinance requires large companies employing more than 500 workers to provide supplemental paid sick leave for employees. The COVID-19 Building Service and Hotel Worker Recall Ordinance requires commercial property businesses, hotels, and event centers to recall laid-off employees by seniority when business activity resumes and to retain employees in the event that the business changes ownership during the pandemic.

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On August 11, 2020, Nevada Governor signed Senate Bill No. 4 (SB 4) into law, introducing a myriad of new measures to enhance worker safety related to COVID-19 for employers in the hospitality industry. Specifically, employers will have to grapple with new mandatory cleaning standards, a response plan for testing, and paid time off for employees who are experiencing symptoms of COVID-19 or who have been exposed. The Department of Health and Human Services adopted regulations pursuant to SB4 on August 31, 2020, making the new measures effective immediately.

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On September 30, employees of private employers in New York state will begin to accrue paid sick leave as a new law signed by Governor Cuomo on April 3, 2020, begins to take effect. The law requires most private employers in New York to provide at least 40 hours of paid sick leave each year to all their workers, including part-timers and casual employees. Employees may begin using the accrued leave effective January 1, 2021, or when they begin employment.

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On August 31, 2020, the California legislature passed Senate Bill 1383, which expands the California Family Rights Act (CFRA) to allow employees to use unpaid job-protected leave to care for a domestic partner, grandparent, grandchild, sibling, or parent-in-law with a serious health condition.

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Yesterday, California lawmakers passed Assembly Bill 3216, which establishes “Recall Rights” and a “Right of Retention” for laid-off employees. California employers must offer laid-off employees in writing by mail, email, and text message all job positions that become available after the bill’s effective date for which the laid-off employees are qualified. AB 3216 now heads to Governor Newsom’s desk for signature, where he has until September 30, 2020 to sign it.

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Unlimited vacation policies have gained popularity in recent years, both with employees and employers. These policies allow employees can take as much time off as their responsibilities allow, and relieve employers of the administrative burden of tracking PTO accrual, use, and payout. Even more attractive to the employers is the proposition that an unlimited PTO policy avoids the requirement of paying out accrued but unused PTO at the end of employment. For traditional PTO accrual policies, earned vacation is considered wages, and Labor Code Section 227.3, requires an employer to payout earned but unused vacation time upon separation. In contrast, under unlimited PTO policies, employees do not accrue and “bank” vacation hours to use later; rather they are entrusted to take time off at their election, so long as they complete their work and perform as expected.

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The Centers for Disease Control and Prevention (CDC) recently revised the guidance regarding when to return an employee to work following a positive COVID-19 test. These revisions shorten the period of time a person should self-isolate and adopt a symptom-based strategy rather than a test-based strategy.

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On July 17, 2020, the U.S. Department of Labor released new forms for Family and Medical Leave Act (“FMLA”) leave. Their stated purpose is to make the process easier, ensure the completeness of the necessary information, and allow for electronic signatures to reduce contact.

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Under the National Labor Relations Act, workers engaging in a “concerted activity” with other employees, such as a union organizer or representative discussing conditions of employment with an employer, qualifies as a protected activity.

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On July 13, 2020, the California Department of Public Health issued Updated COVID-19 Testing Guidance urging employers not to require a negative COVID-19 test before allowing an employee to return to work after they have tested positive for COVID-19.

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As businesses adapt to their “new normal” and prepare for the summer season, employers should be mindful of the approaching increases to city and state minimum wages. Employers should take the time to ensure that they are ready for minimum wage increases scheduled for July 1, 2020.

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The City of Los Angeles released its increased minimum wage for hotels in the City of LA with 150+ rooms. On July 1, 2020, the hourly minimum wage increases from $16.63/hour to $17.13/hour for these hotel workers. The announcement can be found on the City of Los Angeles’ website, which can be found here.

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The City of Los Angeles released its increased minimum wage for hotels in the City of LA with 150+ rooms. On July 1, 2020, the hourly minimum wage increases from $16.63/hour to $17.13/hour for these hotel workers. The announcement can be found on the City of Los Angeles’ website, which can be found here.

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On June 15, 2020, the Supreme Court made its long-awaited decision in Bostock v. Clayton County, holding that Title VII protections expand to sexual orientation discrimination. In a landmark ruling, Justice Gorsuch, appointed by President Trump in 2017, delivered the majority opinion, in a move expanding beyond partisanship ideology. In a 6-3 opinion, the Court found that an employer who fires an individual merely for being gay or transgender violates Title VII under the definition of “sex.” Although many states have already addressed this gap in the law in their own anti-discrimination laws, the ruling resolves a circuit split amongst the federal Courts of Appeals and closes a blind spot in federal law.

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The recently enacted Paycheck Protection Program Flexibility Act of 2020 changes several provisions in the original PPP loan program enacted as part of the CARES Act. The PPPFA gives borrowers more flexibility and time to spend the PPP loan proceeds and allows the funds to be used on broader categories of expenses while still qualifying for loan forgiveness.

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On June 5, 2020, CAL-OSHA released non-exhaustive guidelines for reopening hotels, lodging, and short-term rentals. Reopening processes should begin no sooner than June 12, 2020, subject to local county health officer approval. Properties with large meeting venues, banquet halls, or convention centers are advised to keep those areas closed until further approval. Property managers and other rental unit owners and operators must only rent unoccupied units and cannot rent rooms or spaces within an occupied residence at this time.

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Many employers have “no solicitation” policies for the workplace, prohibiting employees from soliciting for causes of any kind at work. These policies can be tricky to enforce when union solicitation is at issue. In recent years, the Board had narrowed the definition of “union solicitation” to hold that it does not qualify as “solicitation” unless the person soliciting provided a union authorization card to the listener. Now, the Board has reversed that precedent.

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The fluctuating workweek formula applies to nonexempt, salaried employees whose hours vary widely from week to week. The formula allows employers to pay overtime hours at diminishing rates as long as they pay workers a minimum base salary, regardless of how many hours they work. While certain states have disallowed the fluctuating workweek, states who allow the method just received some clarity from the Department of Labor (“DOL”).

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The recent guidance concerning OSHA’s record-keeping requirements will go into effect on May 26, 2020. Under the requirements, COVID-19 is a recordable illness, which means employers are duty-bound to record cases of COVID-19, if they meet certain criteria.

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Not long after the City of Los Angeles enacted its “Right of Recall” ordinance, the County of Los Angeles shortly followed suit. The County Board of Supervisors recently adopted similar measures to establish a right of recall for hospitality workers and others throughout unincorporated areas of Los Angeles County that were laid off due to the COVID-19 pandemic.

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California recently modified its Stay-at-Home Order (Executive Order N-33-20) as of May 8, 2020, to allow manufacturing and certain retail businesses to re-open for curbside business. This modification of the Stay-at-Home Order has left hotels wondering whether hotels are allowed to re-open its doors to guests traveling for leisure or non-essential travel.

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Dine-in restaurants, brewpubs, breweries, bars, pubs, craft distilleries, and wineries that provide sit-down meals are permitted to open under Stage Two of Governor Newsom’s plan. In light of re-openings, California issued guidance to support a safe, clean environment for both workers and customers. The guidance (available in full here) recommends implementing a written, workplace-specific plan. To create a workplace-specific plan, employers should perform a comprehensive risk assessment of all work areas and designate a person at each establishment to implement the plan. After the initial implementation of the plan, employers should regularly reevaluate the establishment for compliance with the plan, investigate any COVID-19 illness, and determine whether work factors could have contributed to a risk of infection. Employers should then update the plan as needed.

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On Monday, May 4, 2020, the American Hotel & Lodging Association (“AHLA”) announced healthy and safety guidelines regarding hygiene and cleanliness standards in line with the U.S. Centers for Disease Control and Prevention (“CDC”). The AHLA guidance comes under the direction of its advisory council consisting of 25 industry leaders, including Hilton, Marriott, Hyatt, and Omni. The “Safe Stay” program aims to set the standard for hotel hygiene standards post-pandemic and boost consumer confidence per CDC and other public health authorities’ guidance.

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Yesterday California Governor Gavin Newsom signed Executive Order N-62-20, creating a rebuttable presumption that employees who test positive for COVID-19 within 14 days of working contracted the virus at work. Employers will have 30 days to rebut the claim by proving the employee contracted the virus elsewhere. This order puts a significant burden of proof on employers.

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San Francisco’s Public Health Emergency Leave Ordinance (“PHELO” or the “Ordinance”) requires businesses with 500+ employees to provide employees with up to 80 hours of paid leave for COVID-related reasons (“PHELO Leave”). While the Ordinance passed on April 7, 2020, the Ordinance was amended and went into effect on April 17, 2020. Shortly after, on April 24, 2020, the San Francisco Office of Labor Standards Enforcement (OLSE) updated its guidance on the Ordinance.

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Businesses fortunate enough to receive a Paycheck Protection Loan (“PPP”) under the CARES Act are now asking, “what do I need to do to get this loan forgiven?” That answer gets more complicated as the days roll on without guidance from the Small Business Administration (“SBA”). Recall there were numerous changes/interpretations applicable to the application process as the application deadline neared.

Here is what we know so far:

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The Los Angeles City Council on Wednesday passed the amended Right of Recall and Worker Retention ordinances that mandate businesses in the hospitality industry to rehire workers laid off during the COVID-19 pandemic. The ordinances were originally aimed at all businesses in Los Angeles but will now only apply to workers in hotels with more than 50 guestrooms, event centers, and airport service, as well as janitorial, maintenance, and security workers in commercial buildings. Restaurants, bars, and clubs are exempt, however workers of restaurants physically located on hotel property are also covered.

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During the COVID-19 pandemic, employers are struggling to determine how to protect their current workforce. We’ve compiled a list of common inquiries regarding this pandemic.

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On Wednesday, the Los Angeles City Council voted unanimously in support of a set of ordinances that establish right of recall and worker retention protections to workers laid off during the COVID-19 crisis. Following extensive public comment and several verbal amendments, the City Council approved the “Right of Recall” (Article 4-72J-A) ordinance.

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It’s easy to lose track of time when you work from home and forget to change out of your work sweatpants and into your relaxing sweatpants at the end of the day. But while teleworking eschews much of the formality of the workplace, it remains critically important that employers don’t lose track of hourly employees’ time. Employers are still ultimately responsible for ensuring compliance with wage and hour laws. Keep these tips in mind if you have hourly employees working from home.

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City of LA issues rules and regulations further clarifying supplemental paid sick leave for large employers.

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Mayor Garcetti has issued an executive order requiring customers at grocery stores and other essential businesses to wear face coverings.

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Los Angeles Mayor Eric Garcetti issued a Public Order on April 7, 2020, mandating supplemental paid sick leave requirements for large employers within Los Angeles and nationwide. This Order expands on the previous ordinance passed by City Council providing supplemental paid sick leave to employers with 500 or more employees nationwide. Please see our previous article for more information on the City Council ordinance.

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Life has changed in ways most of us could never have imagined. Our homes have become our safe havens more than ever before, and our workplaces have spilled over into our home offices, kitchen tables, and family rooms. As we settle into our new normal, we find ourselves connecting to family, friends, and colleagues through Zoom meetings, livestream services, and quarantini virtual happy hours. Without a vaccine, the spread of COVID-19 is a concern that will not quickly disappear. Maintaining a healthy and productive workplace for employees will continue to be a top priority long after the days of walking from the bedroom to the home office have passed.

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The City of Los Angeles passed an ordinance on March 27, 2020, requiring employers with more than 500 employees to provide up to 80 hours of Supplemental Paid Sick Leave (“PSL”) to employees. This Supplemental PSL is in addition to the 48 hours of PSL already required by the City.

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The DOL has issued new guidance and clarified that employees who do not have work available to them (e.g., as a result of a furlough or business closure) will not be eligible for benefits under the Families First Coronavirus Response Act.

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With the amount of confirmed COVID-19 cases exponentially rising, the federal government has passed the “Families First Coronavirus Response Act” (FFCRA or Act) to help during the crisis. The bill, which passed with broad bipartisan support, includes a division providing for emergency paid sick leave.

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In the wake of business slowdowns and shutdowns as a result of the COVID-19 pandemic, many employers face a dilemma when forced to furlough or layoff workers. The Federal and California WARN Acts require 60 days’ notice before laying off employees, subject to certain thresholds. This presents an untenable situation for employers forced to shut down, where they are essentially forced to violate the notice requirement because they cannot continue employing people.

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On October 8, 2019, the U.S. Department of Labor (DOL) published a Notice of Proposed Rulemaking (NPRM) entitled “Tip Regulations Under the Fair Labor Standards Act.” The NPRM seeks to implement and refine the changes on tip pooling made by the Consolidated Appropriations Act (CAA) OF 2018. Most notably, it eliminates the 80/20 rule used to determine if an employer may incorporate an employee’s tips as part of their wages when the employee engages in both tipped and non-tipped duties. If adopted, the NPRM would greatly impact the hospitality industry by expanding the variety of employees who are permitted to participate in a tip pool.

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As the 2020 United States Census goes into full effect, the U.S. Census Bureau is sending letters to various hotels requesting their participation in the 2020 Census count (the “Census”). Every time, our clients have the same question: do we have to participate?

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Coronavirus disease 2019 (COVID-19) is a respiratory disease caused by a new coronavirus, which has now been detected in almost 70 locations internationally, including in the United States.

COVID-19 has become a serious issue for all employers. Stokes Wagner has prepared the following best practices for you to consider in your business.

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The National Labor Relations Board‘s (“NLRB”) “joint employer” test has had tremendous implications for hospitality employers due to the industry’s reliance on third-party employees to supplement their workforces. The NLRB finally released the new test on February 25, 2020, and effectively replaced the previous test outlined in its 2015 Browning-Ferris Industries decision. The new rule narrows the test the NLRB will use to determine when businesses will be liable for the work of third-party employees under federal law. The new rule takes effect on April 27, 2020.

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On February 13, 2020, the California Supreme Court issued its opinion in Frlekin v. Apple, Inc., holding that the time employees spend waiting for their bags and other personal belongings to be screened at the end of a workday is compensable.

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On January 7, 2020, the U.S. Department of Labor published three new opinion letters that every employer should review. The first involves an employer’s nondiscretionary bonus payment of $3,000 given to employees who completed ten weeks of training with a promise to complete eight more weeks. In the second letter, the DOL determined that a per-project payment method satisfies the salary basis regulations for exemption under the FLSA. The third letter addressed compliance under the Family Medical Leave Act (“FMLA”).

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Beginning on March 15, 2020, employers will have to begin providing their Pittsburgh employees with paid sick leave pursuant to a Pittsburgh ordinance passed in 2015. Now that it has cleared judicial hurdles, the new law will require employers to provide their Pittsburgh employees one hour of sick leave for every 35 hours worked within the geographical limits of the City of Pittsburgh. Employers with fewer than 15 employees are not required to pay for the leave for one year after implementation of the law, but beginning on March 15, 2021, even small employers will be required to provide paid leave. The Guidelines for Administering Pittsburgh City Code Chapter 626 describe how to count employees for purposes of determining size of employer.

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Typically used in offices, hotels, hospitals, etc., to provide multiple phones lines within one building, multi-line telephone systems (“MLTS”) are the subject of two new federal laws: (1) Kari’s Law and (2) the Ray Baum Act.

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AB 51, the law that would prohibit California employers from requiring arbitration agreements as a condition of employment, remains on pause indefinitely. On January 31, 2020, after receiving supplemental briefing from both sides, the Eastern District of California issued an order granting preliminary injunction and indefinitely extending the injunction that prevents AB 51 from taking effect. This means that the State of California may not enforce AB 51 until the legal challenges to AB 51 are heard on the merits.

Employers should stay tuned for more updates as the Court will eventually determine whether the State of California should be permanently enjoined from enforcing AB 51. For now, the status quo remains and employers need not make any changes to arbitration agreements that are covered by the Federal Arbitration Act.

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On January 14, 2020, the House Committee on Education and Labor voted to advance the Pregnant Workers Fairness Act (H.R. 2694). The act aims to eliminate discrimination and promote women’s health and security by allowing pregnant women to continue working without jeopardizing their pregnancy. Although the Pregnancy Discrimination Act and the Americans with Disability Act provide some federal protections for pregnant workers, the Pregnant Workers Fairness Act will be the first federal law that explicitly guarantees all pregnant workers the right to reasonable accommodation.

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In September 2019, Seattle City Council voted to adopt a series of ordinances aimed at protecting hotel employees. These ordinances go into effect on July 1, 2020. The four separate ordinances include a range of rules that limit the square footage a housekeeping attendant can clean, mandate additional wages to cover health insurance costs, provide panic buttons for certain workers, and provide new regulations for retaining workers after a change in ownership.

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The California Consumer Privacy Act (“CCPA”) grants new rights to California consumers, took effect on January 1, 2020. In response, businesses must take on new obligations.

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The temporary restraining order (“TRO”) which prevents the enforcement of AB 51 remains in effect until January 31, 2020. As a reminder, California’s AB 51 bars mandatory arbitration agreements in employment agreements. Click here for background on AB 51 and the challenges it faces.

On January 10, 2020, the U.S. District Court for the Eastern District of California heard oral argument from both sides as to whether the Court should enjoin the enforcement of AB 51 until the Court decides the challenge on the merits.

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California’s AB 51, barring mandatory arbitration agreements in employment, is now facing preemption and injunction challenges. On December 6, 2019, the U.S. Chamber of Commerce, California Chamber of Commerce, and several other business organizations filed suit in federal court against the State of California, alleging that AB 51 is preempted by the Federal Arbitration Act (FAA).

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Employers throughout the U.S. are wrapping up October by participating in National Disability Employment Awareness Month (NDEAM), a tradition that can be traced back to 1945. The purpose of NDEAM is to raise awareness about disability employment issues and celebrate the significant contributions of America’s workers with disabilities. The theme of this year’s outreach effort emphasizes the importance of the subject today: “The Right Talent, Right Now.” “Every day, individuals with disabilities add significant value and talent to our workforce and economy,” said U.S. Secretary of Labor Alexander Acosta. “Individuals with disabilities offer employers diverse perspectives on how to tackle challenges and achieve success. Individuals with disabilities have the right talent, right now.”

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Nevada’s SB 312, signed into law in June of this year, is set to take effect January 1, 2020. For the first time in the State’s history, this bill will legislatively mandate private employers to provide employees with up to 40 hours of paid leave per benefit year. This mandate will be enforced by the Nevada Labor Commission and will subject employers to fines of up to $5,000 per violation for non-compliance.

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On October 10, 2019, Governor Newsom signed AB 51 and AB 9 into law. These two worker-friendly laws may require employers to review and revise current policies and procedures relating to employment-related claims. Specifically, AB 51 prohibits employers from entering into mandatory arbitration agreements for all employment-law related claims under the Fair Employment and Housing Act (FEHA) and the California Labor Code. Additionally, under AB 9, the deadline for filing an employment-related administrative complaint with the Department of Fair Employment and Housing (DFEH) is extended by two years. The laws are set to take effect on January 1, 2020, and may face some challenges in the meantime; however, employers should prepare now for the changes in the landscape of employment-related claims.

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This week, the U.S. Supreme Court will hear a trio of cases asking whether federal law protects gay and transgender workers from discrimination. Currently, Title VII of the Civil Rights Act of 1964 makes it illegal for employers to discriminate against workers “on the basis of…sex” among other protected traits. The Court’s ruling on these cases will determine whether “sex” includes sexual orientation and gender identity.

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It’s no secret that California is typically viewed as the most employee-friendly state in the country. New employee-favored laws are passed so quickly that employee handbooks can be rendered outdated before they go to print. Employers who have found themselves on the wrong end of a wage and hour case can attest to the fact that one alleged error, when applied to each employee, can be devastating. On top of that, one Labor Code violation often leads to another violation, and so on and so on.

At issue in Naranjo v. Spectrum Security Services, Inc., a decision issued on September 26, 2019, was the question of whether employees who are entitled to a meal or rest break premium (after denial of a meal or rest period in violation of Labor Code § 226.7) may also recover derivative penalties under Labor Code § 203 (waiting time penalties) and § 226 (inaccurate wage statements).

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The U.S. Department of Labor released its highly anticipated final rule governing the new salary threshold for the “white collar” overtime exemptions. Effective January 1, 2020, the final rule raises the salary threshold for exempt white-collar workers to $35,568 per year.

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Today, on September 18, 2019, California Governor Newsom signed Assembly Bill 5 (AB-5), a landmark piece of legislation that codifies the ABC test and will significantly limit most employers’ use of independent contractors.

Last year, in April 2018, the California Supreme Court rocked the State’s labor and employment landscape with the decision in Dynamex Operations West, Inc. v. Superior Court of Los Angeles (“Dynamex”). The court’s decision changed the way employers classified independent contractors from the longstanding Borello test (an eleven-factor test with no single factor being determinative of a workers’ classification) to a much stricter “ABC” test.

Starting on January 1, 2020, the ABC test becomes state law. California will consider a person providing labor to be an employee of a hiring entity unless:

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Last month, the United States Court of Appeals for the Ninth Circuit certified two questions of state law to the California Supreme Court:

1. Does the absence of a formal policy regarding meal and rest breaks violate California law?
2. Does an employer’s failure to keep records for meal and rest breaks taken by its employees create a rebuttable presumption that the meal and rest breaks were not provided?

The answers to these questions could profoundly affect the way employers in the state notify employees and keep records of meal and rest breaks.

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California employers now have until January 1, 2021, to provide sexual harassment training to their non-supervisory employees.

Last year, California passed SB 1343, which expanded sexual harassment training requirements for employers. All employers with five or more employees were required to provide sexual harassment training to non-supervisory (or “hourly”) employees by January 1, 2020. These employers are now required to provide sexual harassment training to employees as follows:

• Supervisors/Managers must receive two hours of training; • Non-supervisory employees must receive one hour of training.

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A recent federal court decision reminds employers that an employee’s electronic acceptance of an arbitration agreement may not, by itself, be enough to prove that the employee has agreed to arbitrate. In Shockley v. PrimeLending, the U.S. Court of Appeals for the Eight Circuit recently affirmed the lower court’s decision to deny the employer’s motion to compel arbitration where the arbitration agreement was signed via the employer’s automated intranet system.

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The National Labor Relations Board (the “Board”) recently issued a precedent-reversing ruling on August 23, 2019, that allows employers to bar non-employees from leafletting on their premises. In its decision, the Board held that contractor employees are not generally entitled to the same National Labor Relations Act (NLRA) Section 7 access rights as the property owner’s employees.

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On August 27, 2019, the Santa Monica City Council voted unanimously to pass an ordinance providing certain protections for hotel workers, with particular focus on Room Attendants, working in the city of Santa Monica. The City Council heard lengthy public comment on both sides of the proposed ordinance, with Unite Here’s Local 11 being both the most numerous and the most outspoken in favor of the ordinance.

At the close of public comment, changes were made to the ordinance as initially proposed. These changes, in large part, only made the ordinance more restrictive on hotel employers. The following is a summary of the ordinance’s requirements. All the following requirements will become effective on January 1, 2020, unless otherwise specified.

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The State of California recently passed SB-83, which extends Paid Family Leave benefits from six to eight weeks for claims that start on or after July 1, 2020.

CA’s Paid Family Leave program (“PFL”) is a state disability insurance program. PFL provides up to eight weeks of wage replacement benefits to employees who take time off work to care for a seriously ill child, spouse, parent, grandparent, grandchild, sibling, or domestic partner. PFL can also provide eight weeks for benefits to employees who take time off to bond with a minor child within one year of the birth or placement of the child in connection with foster care or adoption.

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Last year the Miami Beach City Commission passed a law requiring all hotels within the City of Miami Beach to provide certain employees with panic buttons by September 15, 2019. Modeled after Chicago’s 2018 safety-button ordinance, the new law applies not only to housekeepers or room attendants but also to minibar attendants and room service servers. Will your property be ready?

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On August 9, the National Labor Relations Board released three proposed new rules designed to ease employees’ ability to avoid unionization or decertify unions.

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Georgia’s Smoke-Free Air Act and Atlanta’s current smoking ordinances allow smoking only in establishments that deny access to minors or have a private room for smokers with an air-handling system separate from the main air system. The Atlanta City Council has voted to amend the ordinance to abolish these two smoking exceptions for smoking indoors. The amended ordinance’s main purpose is to protect Atlanta citizens from secondhand smoke which, according to the City Council, causes the same diseases as directly using tobacco products.

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In January 2020, Nevada will become the first state to bar employers from refusing to hire a prospective employee due to a positive drug test for cannabis. The new law carves out some exceptions for employees who operate a motor vehicle or whose cannabis use could adversely impact the safety of others but protects all other job applicants.

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The City of Chicago becomes the latest city to pass predictive scheduling legislation, also known as the “Fair Workweek Ordinance.” Effective July 1, 2020, this Ordinance requires certain employers to give most workers early notice of their schedules and to pay employees whose schedules are changed after they receive notice.

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The EEOC collects workforce data from employers with more than 100 employees (a lower threshold applies to federal contractors). The data collected is used for several purposes, including enforcement, employers’ self-assessment, and for research. Historically, such employers have been required to file annual Employer Information Reports (“EEO-1 Component 1 Reports”) disclosing the number of employees by job category, race and gender.

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The California Consumer Privacy Act (“CCPA”) is set to take effect January 1, 2020. Since the announcement, employers have been raising concerns about whether the provisions of the act will include personal data collected from job applicants and employees. In May of 2019, the Assembly passed Assembly Bill 25 (“AB 25”), which explicitly narrowed the definition of “consumer” to exempt a business’ applicants and employees, among others. Just this week, the Senate significantly amended AB 25 by sunsetting the employee exemption on January 1, 2021.

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On July 10, 2019, Governor Cuomo signed two new bills that expand New York State’s equal pay Labor Law § 194. These new bills specifically (1) expand the scope of New York State’s equal pay law to all protected classes and (2) prohibit employers from asking an applicant about their prior salary history.

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The Equal Employment Opportunity Commission (“EEOC”) announced that it will be collecting data on pay and hours worked from 2017 and 2018. The deadline for employers to submit this information to the EEOC is September 30, 2019.

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As you may have heard, Immigration and Customs Enforcement (“ICE”) plans to begin the previously postponed raids across the country starting this Sunday (7/14/19). From what we can gather, ICE plans to target at least 10 cities to arrest individuals here illegally who have court orders for removal from the country. The raids were initially scheduled for 4th of July but were postponed.

While there has not been confirmation on the targeted cities, the raids are expected in Atlanta, Baltimore, Chicago, Denver, Houston, Los Angeles, Miami, New Orleans (likely postponed here due to the hurricane Barry), New York, and San Francisco.

While we have no reason to believe ICE will target individuals at work, this is a good time to educate yourself on your right regarding law enforcement requests for information. Please feel free to reach out to Stokes Wagner with any questions.

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Dogs have always been our best friends, so it’s not surprising that more and more restaurants are making strides to ensure their patrons can dine without leaving their fur babies at home. But with great change comes great liability. Here are some points restaurant owners should consider so dogs can dine without incident.

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On July 3, 2019, Governor Gavin Newsome signed into law the CROWN Act (Creating a Respectful and Open Workplace for Natural Hair.) While New York City recently became the first locality to enact such legislation, California is the first to ban natural hair discrimination statewide.

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On April 30, 2018, the California courts rocked the State’s labor and employment landscape with the decision in Dynamex Operations West, Inc. v. Superior Court of Los Angeles (“Dynamex”). The court’s decision changed the way employers classified independent contractors from the longstanding Borello test (an eleven-factor test with no single factor being determinative of a workers’ classification) to the much stricter “ABC” test.

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The U.S. Women’s National Team is on track to defend its 2015 World Cup title after defeating Spain in the Round of 16 on June 24. They’re the favorite in their upcoming quarter-final match against France on June 27. Away from the pitch, they face another battle: in March, members of the team filed a lawsuit in Federal Court in Los Angeles, seeking equal pay under the Equal Pay Act and Title VIII of the Civil Rights Act.

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Last month New York Governor Cuomo approved amendments to the state’s election laws that provide employees with up to three hours of paid leave on election days. In order to qualify, employees must be registered to vote and must give their employers two days’ notice of their intent to take election leave.

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If there is one thing worse than sexual harassment in the workplace, it’s retaliation against a victim of harassment as a result of reporting harassment. Existing law in California prohibits an employer from terminating, discriminating or retaliating against an employee because of the employee’s status as a victim of sexual harassment, domestic violence, sexual assault or stalking (Labor Code, Section 230). Assembly Bill-171 (presented by Gonzalez, D-San Diego) seeks to broaden the protections for such victims by providing a “rebuttable presumption” of unlawful retaliation if an employer within 90 days following either the date when the victim provides notice to the employer or when the employer has actual knowledge of the status, discharges, threatens to discharge, demotes, suspends, or takes any other adverse action against the victim-employee. “Harassment” in this context means sexual harassment, gender harassment, and harassment based on pregnancy, childbirth, or related medical conditions.

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In January 2019, Governor Gavin Newsom announced that California would soon be expanding its Paid Family Leave (PFL) program. That promise has come to fruition in the May revisions to Governor Newsom’s budget released earlier this month.

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As spring starts to turn into summer, increases to city and state minimum wages are steadily approaching. Employers should take the time now to ensure that they are ready for minimum wage increases scheduled for July 1, 2019.

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On March 4, 2019, the U.S. District for the District of Columbia issued an opinion reinstating the EEOC’s collection of pay data as part of the EEO-1 Report filing. The revised EEO-1 form was an Obama-era change that would have required employers with 100 or more employees to report W-2 wage information and total hours worked for all employees by race, ethnicity and sex within 12 proposed pay bands. The pay data collection requirement was originally slated to go into effect on March 31, 2018 but was stalled after the Office of Management and Budget (“OMB”) stayed the implementation of the pay data collection portions of the revised EEO-1 Report.

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Recently, the United State Supreme Court accepted three different cases dealing with gay and transgender rights under Title VII of the Civil Rights Act of 1964. Title VII prohibits employment discrimination based on sex and the question of whether this includes discrimination on the basis of sexual orientation and gender identity has been hotly contested in recent years. While opinions issued by the U.S. Equal Employment Opportunity Commission (“EEOC”) have generally indicated that sexual orientation and gender identity should fall within the purview of Title VII, courts have remained divided over these issues. It is anticipated that the Supreme Court’s decisions will finally provide much-needed clarity for employers and the LGBTQ community at large.

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Did you receive a notice from the Social Security Administration that an employee’s name and Social Security Number are mismatched on their W-2 this tax season? Not to worry, this is a fairly common occurrence, and the Social Security Administration has provided simple instructions for addressing the issue.

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It’s no secret within the hospitality industry that restaurants and hotels have thin profit margins, averaging only 3-5%. With the two largest expenses being fixed rent and variable labor, it is not uncommon for venues to focus on labor costs. This undoubtedly explains the growing trend to evaluate outsourcing certain positions. Outsourcing aims to eliminate overtime and the cost of employee benefits while responding to business level fluctuations in real-time. But, if the outsource process is mismanaged, it may create more problems than it solves. These are our top 5 prevention tips to avoid problems.

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Even in California, where the courts have resisted sending employee claims to arbitration, the tide is turning in favor of mandatory employment arbitration agreements. The California Court of Appeals for the Second Appellate District reversed the decision of Los Angeles Superior Court judge William Fahey denying the employer’s petition to enforce its arbitration agreement.

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With the popularity of Facebook and the widespread use of social media by employees, it probably comes as no surprise that experts believe a person’s Facebook status update offers interesting (and usually obvious) insight about his or her personality. Some people tend to share photos of their travel adventures or culinary skills while others post primarily about the political issues of the day or their kid’s latest athletic competition. For the reader, status updates can be interesting, fun and educational. They can also be dangerous traps for the unwary when they consist of unrestrained rants targeting an employer. Certainly, “concerted activities” for the purpose of mutual aid or protection are permitted and protected by the National Labor Relations Act; therefore, posts consisting of complaints concerning working conditions or worker’s rights will typically not support termination of the employee. However, before “going off” on an employer on social media, or tolerating the same by your employees, remember that such posts may be viewed as offensive and unprotected, supporting a legal termination.

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Joint employer status has long been a hot topic and is seemingly a moving target depending on which agency or jurisdiction is evaluating the status. In a move to reduce uncertainty over joint employer status, promote greater uniformity among court decisions, reduce litigation, and encourage innovation in the economy, on April 1, 2019, the U.S. Department of Labor (“DOL”) proposed a four-part test to replace existing regulations that determine joint employer status under the Fair Labor Standards Act (“FLSA”). While the proposal was favorably received by managers/employers, it sparked criticism from the plaintiffs’ attorneys, who accused the DOL of ignoring precedent that interpreted joint employment broadly.

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Last month, the New York City Commission on Human Rights released new guidelines (available here) that explicitly protect “the rights of New Yorkers to maintain natural hairstyles that are closely associated with their racial, ethnic, or cultural identities.” Penalties for employers include fines up to $250,000 per infraction with unlimited civil damages.

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Employers in New York City now have additional requirements for their employee lactation rooms and lactation policies.

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Pay equity has taken center stage among the wide array of workplace issues receiving news coverage and public prominence in recent years. Companies and courts alike are trying to determine how to ensure that men and women are paid fairly in connection with their work and experience. The question of how to address pay equity has created such clamor and divergence that the United States Supreme Court decided to review the Ninth Circuit’s interpretation of the law in Fresno County Superintendent of Schools v. Rizo, Case No. 18-272. However, in a shocking twist, the Supreme Court vacated the underlying case from the Ninth Circuit Court of Appeal on February 25, 2019, in light of the death of Ninth Circuit Justice Stephen Reinhardt.

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More employees will now be considered non-exempt, as the U.S. Department of Labor raised the minimum salary threshold for workers to qualify for the Fair Labor Standards Act’s “white collar” exemption. In replacing an Obama administration rule, the new proposal would raise the salary threshold requirement from $23,660 to $35,308 per year. As a result, more employees will be subject to compensation for any time exceeding 40 hours in the workweek.

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Does your company still perform background checks on employees? If you answered yes, then the Ninth Circuit’s recent ruling on background check disclosures applies and you should review your company’s background check disclosures immediately.

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Security has become a paramount concern for hotels across the globe. While the hospitality industry has historically prioritized efforts to safeguard properties from physical threats of violence, digital security threats are on a meteoric rise. Most notably, hackers have devised ways to infiltrate hotels’ online security measures. A common tactic used by hackers involves the use of ransomware, a type of malicious software that prevents system access unless a sum of money is paid to the culprits. A very infamous example took place in the Austrian Alps at the four-star Seehotel. Between December 2016 and January 2017, Seehotel’s electronic door locks and other internal systems were held for ransom on four separate occasions. Guests were unable to use their hotel door keys until Seehotel’s managing director paid the digital attackers.

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Due to a recent California Court of Appeal ruling, employers must now pay employees “reporting time pay” when employees are required to call their worksite two (2) hours prior to a scheduled on-call shift and must report to work for that shift if the employer requests. In Ward v. Tilly’s, Inc., the Court made clear that this ruling applies prospectively and not retroactively.

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The National Labor Relations Board’s recent ruling in SuperShuttle DFW, Inc. returns to a longstanding standard in evaluating proper independent contractor classification. Although its scope is limited, the recent ruling eases restrictions on proper independent contractor classification for purposes of unionization rights under the NLRA, specifically where the workers’ role involves “entrepreneurial opportunity.”

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As employer-provided rideshares and shuttles grow in popularity, employers often ask whether their employees should be paid for their time spent on company-provided transportation. A California appellate court recently affirmed a long-standing rule that, so long as the employer-provided shuttle is optional, the time spent on a company-provided vehicle does not count as “hours worked” and is not compensable.

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Senate Bill 970, signed into law by Governor Jerry Brown on September 27, 2018, will require employers in the hotel and/or motel industry to educate their employees on human trafficking awareness.

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San Francisco implemented critical amendments to its “Ban-the-Box”, or “Fair Chance Ordinance” (“FCO”). These amendments went into effect on October 1, 2018.

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On September 30, 2018, Governor Jerry Brown signed a number of bills that will have a major impact on businesses operating in California.

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In the wake of the recent Las Vegas shooting and the rise of the #MeToo movement, concerns about safety in the hospitality space are at an all-time high. The American Hotel & Lodging Association (“AHLA”) recently re-emphasized its dedication to these issues through its announcement of the 5-Star Promise in September 2018. Most notably, major hotel brands including Hilton, Hyatt, IHG, Marriott, and Wyndham, have publicly shown their support for the Promise and its goals.

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In April 2018, Governor Cuomo of New York signed a set of laws aimed at combating sexual harassment in the workplace. New York employers must (1) provide all employees with written policies describing employee protections against sexual harassment and (2) conduct annual sexual harassment prevention trainings with all employees.

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Last week the Ninth Circuit filed its en banc opinion by the Ninth Circuit in Marsh v. J. Alexander’s LLC, No. 15-15791, 2018 WL 4440364 (9th Cir. Sept. 18, 2018). In this case, the full Ninth Circuit overturned previous panel and district court decisions and upheld the U.S. Department of Labor’s “20%” rule for tipped employees.

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On Tuesday, the Bureau of Consumer Financial Protection published a new version of the “Summary of Your Rights Under the Fair Credit Reporting Act”. This version must be provided to job applicants when conducting employment background checks pursuant to the Fair Credit Reporting Act (“FCRA”). The revised Summary of Rights alerts applicants to their right to obtain a free national “security freeze”, which prohibits credit reporting agencies from releasing a person’s credit report without their consent.

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Hospitality guests have historically used gratuity to acknowledge their service staff’s excellent work. Employees have come to expect and rely on gratuities, as they now often form the majority of their incomes. Restaurants also sometimes charge guests mandatory fees instead of, or in addition to, gratuity. Yet employers often mislabel, mishandle and commingle gratuities and service charges, which can have serious legal implications. Understanding the differences between a gratuity and a service charge is critical. Below, we demystify these payments and explain how to limit your exposure through best practices.

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The Social Security Administration (“SSA”) has announced, effective January 2019, it will begin enforcing penalties against employers who file Form W-2s with inaccurate employee information.

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On June 6, 2018, the NLRB’s new General Counsel, Peter B. Robb, issued guidance regarding the Board’s current policies on Employee Handbooks, expanding on the Board’s recent decision in The Boeing Company, 365 NLRB No. 154 (Dec. 14, 2017), and taking a more employer-friendly approach.

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Significant amendments to New York City’s Earned Safe and Sick Time Act (“ESTA”) went into effect on May 5, 2018. ESTA generally provides employees with the ability to use accrued paid time off for personal purposes. This paid time off (or, “paid sick leave”) can be used by employees to care for themselves or to care for family members.

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New York City recently signed the “Stop Sexual Harassment in NYC Act” into law. The Act amends the New York City Human Rights Law (“NYCHRL”) and the New York City Charter, providing several noteworthy changes aimed at preventing sexual harassment in the workplace.

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Oregon’s “Fair Work Week Act” requires covered employers to provide employees with advanced notice of their work schedules. The new law applies to employers in the large retail, food service and hospitality industries with more than 500 employees worldwide and at least one or more hourly employees working in the State of Oregon.

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Recent amendments to Seattle’s Paid Sick and Safe Time (PSST) ordinance make it even more comprehensive and inclusive. The law provides employees of eligible employers with paid sick time as well as “safe” time to deal with situations such as domestic abuse or sexual assault, or closure of work or school for any health-related reason.

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Starting August 30, 2018, California hotels must display additional signs warning guests of chemicals that can cause cancer, birth defects, or other reproductive harm.

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California hotels must display a human trafficking notice in a visible location near the public entrance or in another conspicuous location in clear view of the public and employees where similar notices are customarily posted.

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To further create workplaces free of sexual harassment and discrimination, California’s Fair Employment and Housing Act (“FEHA”) has expanded regulations to require employers to honor an individual’s gender identity, provide gender-neutral facilities, and display posters informing employees of transgender rights. The most notable amendments to the regulations go into effect July 1, 2017.

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The California Employment Development Department (EDD) recently updated its Notice to Employees poster (DE 1857A) and its pamphlet, For Your Benefit: California’s Program for the Unemployed (DE 2320).

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The #MeToo movement has prompted many state and local governments to expand protections prohibiting discrimination. Two months ago, the Illinois General Assembly passed a series of amendments to the Illinois Human Rights Act, which forbids discrimination in connection with any protected class. If signed into law, the amendments could significantly impact employers.

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Historically, employers have not been on the hook for paying employees for time that was de minimis, or in other words, hard to capture in a time system and administratively difficult to record. However, that just changed with the decision in the California Supreme Court case, Troester v. Starbucks, Corp.

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If you are considering settling your employee’s workers’ compensation claim and hoping to avoid further litigation, be aware of the Adrian Camacho v. Target Corporation decision by California’s Fourth District Court of Appeal.

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Just last month, the General Data Protection Regulation (“GDPR”) came into existence. GDPR is the legal framework establishing the guidelines for collection and processing of personal data of individuals in the European Union (“EU”) and the rights of the individuals with regard to such data. The GDPR requires businesses to be much more explicit about the information they maintain on people and to provide them with more control over that information. While European businesses may have been planning for the GDPR for some time, many U.S. companies are unprepared with no plans in place to comply. However, the long arm of the GDPR might apply to them.

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California’s Division of Occupational Safety and Health (“Cal-OSHA”) has approved new regulations to prevent workplace injuries to those working in the housekeeping and hospitality industry.

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The City of Los Angeles announced its Citywide Hotel Worker Minimum Wage increase, which applies to hotels in the City of LA with 150 or more rooms.

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Today, the Supreme Court issued a 5-4 decision holding that employers are not violating the National Labor Relations Act by requiring employees to sign class action waivers in arbitration agreements as a condition of their employment. Rejecting the NLRB’s position that class waivers violate a workers’ right to engage in concerted action, the majority held that mandatory arbitration agreements, which bar employees from joining together in a class-action lawsuit to settle disputes over wages and working conditions, must be enforced.

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Determining whether a worker is properly classified as an employee or independent contractor can be difficult. California recently made this determination less challenging by providing a more rigid test.

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In 2011, the U.S. Department of Labor (“DOL”) introduced regulations affirming that tips are the property of the employee regardless if the employer uses a tip credit under the FLSA. Under this framework, only “customarily tipped employees” can receive distributions from a company tip pool. Tip pools set up by employers to include employees who are not regularly tipped employees are invalid. This limitation applies even where the employees contributing to a tip pool are paid the applicable minimum wage. Moreover, employers and management staff are precluded from receiving any portion of tip pools under the current regulation. The 2011 regulation has led to voluminous litigation over what constitutes a “customarily tipped employee” and has resulted in inconsistent rulings from various courts.

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The newest trend in Americans with Disabilities Act (“ADA”) lawsuits target businesses’ websites. Litigants have increasingly sued or threatened to sue under Title III, alleging that the website is not sufficiently accessible to the disabled (i.e., the website lacks assistive technology for individuals who are blind or hearing-impaired).

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The National Labor Relations Act (NLRA) protects the employee right to engage in “concerted activities for the purpose of . . . mutual aid or protection.” This includes not only the right to support a union, but also simply the right of employees to converse among themselves on issues affecting their employment. Consequently, any workplace rule explicitly infringing on this right, as well as any rule applied so as to cause such infringement, can be held unlawful. For example, if employees regularly get together before or after work, during which gripes and grievances (or unions) can be discussed, a workplace rule restricting these gatherings will generally be held unlawful.

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The #METOO movement took social media by storm in October 2017 as a means of illustrating the prevalence of sexual assault, harassment, and misconduct, particularly in the workplace. As the conversation around the #METOO movement swirls, employers have begun to assess how the movement affects their policies. Employers should stick to a simple three-part strategy: (1) promulgate a clear policy; (2) thoroughly investigate complaints; and (3) always respond accordingly and swiftly.

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On Aril 6, 2018, the U.S. Department of Labor announced amendments to the Fair Labor Standards Act (“FLSA”) § 3(m).

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In November 2017, the Ninth Circuit (covering California, Washington, Oregon, Nevada, Hawaii, Alaska, Idaho, Arizona, Montana) decided that the Fair Labor Standard Act’s (“FLSA”) hourly minimum wage requirement applies to weekly per-hour averages rather than actual per-hour pay. This means that the appropriate way to determine minimum wage compliance under the FLSA during any workweek is by calculating the pay earned during the entire workweek, rather than the pay earned in each individual hour of the workweek.

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The 2nd Circuit, covering Connecticut, New York, and Vermont, has revived a sex bias claim brought on behalf of Donald Zarda, a deceased skydiving instructor who was allegedly fired for telling a client he was gay. As an instructor at Altitude Express, Zarda sometimes mentioned his orientation in order to help female clients feel more comfortable when jumping, as they would be tied physically close to him during jumps. Zarda was fired after a boyfriend of one female client complained to Zarda’s boss that Zarda had inappropriately touched his girlfriend and mentioned he was gay. Zarda denied anything inappropriate and alleged that his dismissal was entirely because he said he was gay.

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On-call employees of fast food chain Yoshinoya claim they are owed reporting time pay when they call in for a shift but are not put to work. A L.A. Superior Court judge recently ruled that the plaintiffs may pursue their claims. This putative class of kitchen and cashier “on-call” employees call two hours before their scheduled shift to find out whether they are needed to work. If they fail to call in or do not show up for work when needed, they may face discipline. Plaintiffs claim that they are entitled to reporting time pay when they call in but are not put to work, even though they are not required to physically report to work.

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California’s New Parent Leave Act (S.B. 63), which requires small business employers (20-49 employees) to provide employees with 12 weeks of unpaid, job-protected parental bonding leave went into effect on January 1, 2018.

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California’s “Immigrant Worker Protection Act” (“AB 450”) went into effect on January 1, 2018. This Act prohibits California employers from allowing an ICE agent to search a worksite by an ICE agent without proper, legal documentation. Employers may not provide ICE agents access to employee records without a subpoena or warrant, with the exception of Form I-9’s and other documents for which the employer receives a Notice of Inspection.

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In July 2016, Santa Monica enacted two minimum wage ordinances, one specific to hotel workers (the “Hotel Workers Living Wage Ordinance”), and the other to any employees of an employer in Santa Monica (“Minimum Wage Ordinance”).

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On January 18, 2018, California’s Department of Industrial Relations Occupational Safety & Health Standards Board, approved a proposed regulation requiring hotel employers to maintain “an effective, written, musculoskeletal injury prevention program (MIPP) that addresses hazards specific to housekeeping.”

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The Trump administration has been ordered to accept new applications for Deferred Action for Childhood Arrivals (“DACA”) benefits.

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Stokes Wagner recommends that you review and update your employee handbooks annually. This article contains a list of policies and procedures for you to consider adding in your respective employee handbooks.

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Prior to 2018, the United States Department of Labor (“DOL”) had applied a rigid six-part test to determine whether interns must be treated as employees or unpaid interns. However, on January 5, 2018, the DOL announced that, in an effort to eliminate confusion and align itself with recent case law, it would adopt the “Primary Beneficiary” test to determine whether interns are employees under the Fair Labor Standards Act (“FLSA”).

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Starting January 1, 2018, nearly all private employees in New York State will be eligible for Paid Family Leave so the employee can (1) bond with a newly born, adopted or fostered child; (2) care for a family member with a serious health condition; or (3) assist loved ones when a family member is deployed abroad on active military duty. Paid Family Leave will phase in over four years, starting at 8 weeks in 2018 and increasing to 12 weeks by 2021.

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To better protect hotel workers against sexual harassment and assault, Chicago passed the “Hands Off Pants On” Ordinance. The Ordinance requires Hotels in the City of Chicago to adopt (1) a “panic button” system and (2) anti-sexual harassment policy.

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An amendment to the New York City Human Rights Law, effective October 31, 2017, prohibits New York City employers from considering job applicants’ salary histories. Here are the details:

The Amendment Prohibits Employers From:

• Inquiring about an applicant’s salary history; or
• Relying on an applicant’s salary history when making decisions about an applicant’s salary at any time during the hiring process.

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Governor Brown, Jr., recently signed five employment bills into law that affect all California employers. The following laws are effective starting January 1, 2018.

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California’s Division of Occupational Safety and Health (“Cal-OSHA”) recently increased its penalties in response to Federal OSHA’s increased penalty hikes last year.

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On September 6, 2017, in Marsh v. J. Alexander’s, LLC, the Ninth Circuit refused deference to the United States Department of Labor’s (the “DOL”) 80/20 Rule, which interprets the “tip credit” under the Fair Labor Standards Act (“FLSA”). The Ninth Circuit held that the 80/20 Rule is inconsistent with the FLSA because the Rule improperly focuses on an employee’s individual duties, rather than an employee’s distinctive dual positions.

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The Department of Labor (DOL) has announced an intent to rescind the notorious 2011 Federal Tip-Pooling Rule, which currently prevents service-industry employers from allowing front-of-house servers to share tips with back-of-house employees (i.e., cooks and dishwashers). Under the 2011 regulation, tip-pools must only include front of house staff. Given the prevalence of tip-pooling in the service industry, the 2011 rule has been the subject of numerous legal challenges, including two petitions that are currently pending before the United States Supreme Court.

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On July 17, 2017, the United States Citizenship and Immigration Services (“USCIS”) released a revised Form I-9.

While the revised form does not change storage and retention rules, it does include subtle changes to the form’s instructions. For instance, the instructions to Section 1 have been revised to remove “the end of” from the phrase “the first day of employment.” Also, the form introduces a new name for the Department of Justice’s Office of Special Counsel for Immigration-Related Unfair Employment Practices: The Immigrant and Employee Rights Section.

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In a recent newsletter, we reported that the United States Supreme Court would decide the hotly contested issue of whether class waivers are valid in arbitration agreements sometime this year.

The Court recently announced that it would hear oral argument on the issue on October 2, 2017. Stokes Wagner will keep you informed as things progress with this hot issue.

For more legal updates, check out our update for September 2017!

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In Stragapede v. City of Evanston, Illinois, the Seventh Circuit upheld the nearly $580,000 jury verdict in favor of the former City employee. Stragapede, a 14-year veteran of the City’s Department of Water Services, suffered a traumatic brain injury at home in 2009.

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As we wrote in our June update, the Obama administration raised the minimum salary requirement for major “white collar” exemptions from $455/week to $913/week. In July 2017, the Department of Labor (“DOL”) filed its long-awaited reply brief with the 5th Circuit regarding the new minimum requirements. The DOL did not seek to reinstate the Obama’s minimum salary level. The DOL did, however, ask the Court to find that the DOL has authority to set a salary test.

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For the first time ever, the California Labor Commissioner fined a general contractor nearly $250,000 for wage and hour violations committed by its subcontractor, who had been hired for a hotel construction project in Southern California. This decision is significant for businesses that use subcontractors.

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Ever wonder if you can recover litigation costs in employment cases? On August 15, 2017, in Sviridov v. City of San Diego, the court made it clearer for employers.

Two years ago, in Williams v. Chino Valley Independent Fire Dist., the Supreme Court explained that prevailing employers in employment cases can generally only recover costs if the employee’s action was objectively without foundation – an extraordinarily high standard. However, Williams was not asked to consider and did not answer the question of whether costs may properly be awarded in a FEHA action pursuant to a Section 998 offer. That issue was before the court in Sviridov.

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Employees who sue for unpaid wages can either file (1) a civil lawsuit or (2) a wage claim with the Division of Labor Standards and Enforcement (“DLSE”). An employee who files a wage claim with the DLSE may participate in a settlement conference with his/her employer. If the case does not settle, the DLSE will set the case to an administrative hearing, known as a “Berman Hearing”. Berman Hearings are mini, informal trials with a Labor Commissioner. Berman Hearings, compared to civil lawsuits, are designed to provide a speedy, informal, and affordable method for employees and employers to resolve wage claims.

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Starting January 1, 2018, San Francisco requires employers to ensure that any space offered for lactation also includes a place to sit, a surface on which to place a breast pump and/or other personal items, access to electricity, and a nearby refrigerator in which the employee can store expressed milk. An employee’s lactation break time may be unpaid if it is not taken within or during an already-specified paid break. The Ordinance strictly prohibits retaliation against anyone who requests lactation accommodation or files a complaint with San Francisco’s Office of Labor Standards Enforcement (“OLSE”).

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Effective July 19, 2017, San Francisco became the first city in California to ban employers from asking job applicants about their salary history. This is the latest in a nationwide movement to promote gender pay equality. As cited in the San Francisco Ordinance, census data shows that women in San Francisco are paid 84 cents for every dollar a man makes, and women of color are paid even less. The ban seeks to stop the “problematic practice” of relying on past salaries to set new employees’ pay rates, which perpetuates the historic gender pay gap.

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Effective 3/13/2017, San Jose employers must offer additional hours of work to current part-time employees before agreeing to hire additional, outside workers. These current part-time employees must in “good faith and reasonable judgment” have the necessary skills and experience to perform the work. Employers are not required, however, to offer hours to part-time employees if doing so would require overtime pay.

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Local 25 Teamsters (Union) were recently acquitted of charges of conspiracy to extort and attempted extortion. In June 2014, the Teamsters allegedly slashed tires, used sexist and racist slurs, and threatened to “bash” celebrity host Padma Lakshmi’s “pretty little face in.”

Federal prosecutors accused the Union members of trying to shut down the filming if the show did not hire Teamsters to drive production vehicles. The prosecutors specifically had to prove that the Teamsters’ labor objectives, however egregious their actions, were illegitimate.

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Massachusetts recently passed the Pregnant Workers Fairness Act, which protects women from discrimination based on pregnancy, childbirth, and expressing milk. Effective April 1, 2018, it is unlawful for an employer to deny reasonable accommodations related to pregnancy, childbirth, or related conditions upon request unless the employer can demonstrate that the accommodation would impose an undue hardship on the employer.

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Employers in Massachusetts may not terminate employees who use medical marijuana in accordance with a prescription according to the Massachusetts Supreme Judicial Court’s recent ruling in Barbuto v. Advantage Sales and Marketing, LLC. Barbuto, a former Advantage employee, disclosed her medical marijuana usage at the time of her hire. Ms. Barbuto worked for only one day before she was terminated for failing the company’s mandatory drug test. The company’s drug policies followed the federal drug schedule, not local Massachusetts law. The court found for Ms. Barbuto by stating that, in terminating her employment, the company illegally discriminated against her.

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On August 5, 2017, the New York City Commission on Human Rights published final regulations which expand on and clarify the already burdensome requirements of the Fair Chance Act (“FCA”). These newly released regulations will make background checks particularly difficult for national employers and/or employers with a consolidated hiring process in multiple states.

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The City of New York enacted several bills affecting fast-food employers, effective November 26, 2017.

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