Countless employers have now been faced with class action litigation, making claims for various deviations from the California Labor Code. Many times employers will face these head on with evidence that the claims made by one former employee are not sufficiently common to a substantial number of other past and current employees to merit class action treatment. Other times, employers argue the plaintiff’s allegations don’t demonstrate a uniform set of facts such that the Court would be able to decide a single legal question that would be applicable to an entire class. However, before dealing with these issues head on, California employers should always look beyond our borders to see if Federal law preempts the California Labor Code.
Continue Reading Make Sure to Review Federal Exemptions When Fighting Class Actions in California: Court Finds Truck Route Drivers’ Break Claims Preempted By FAAAA
February 2012
Recent Developments Warrant Review of Arbitration Agreements
An employer’s ability to have disputes with employees resolved by arbitrators instead of courts had some ups and downs in recent days. One of those developments suggests that employers should review and perhaps revise their arbitration agreements to keep them enforceable in state court. The other development indicates that arbitration agreements will continue to be treated favorably by federal courts.Continue Reading Recent Developments Warrant Review of Arbitration Agreements
Employers Beware – The Crackdown Continues
The State of California Signed an MOU with the Federal Department of Labor Together They Will Locate and Punish Those Who Misclassify Independent Contractors
In my November 4, 2011 post, I discussed a new California law (Labor Code § 226.8) that imposes serious monetary fines and other sanctions against those who willfully misclassify workers as “independent contractors” rather than “employees.” Those who violate the law can find themselves paying up to $15,000 per violation and up to $25,000 if there is a pattern and practice of misclassification. Also, if the violator is a licensed business, it runs the risk of having its license revoked. Finally, the law provides for publication of a notice to employees and the general public for a period of one year, stating that the violator committed a serious violation of the law.Continue Reading Employers Beware – The Crackdown Continues