On December 10, 2018, the Fourth Appellate Court decision in Kennedy Donohue v. AMN Services, LLC (“AMN”) was certified for publication and it brings good news for California employers who use a neutral rounding timekeeping system. The case involved a class action and PAGA action brought by Ms. Donohue on behalf of nurse recruiters who worked for AMN. Ms. Donohue claimed that AMN had violated various California wage and hour laws and brought claims for: 1) failure to provide meal and rest periods in violation of Labor Code sections 226.7 and 1197.1; 2) failure to pay overtime and minimum wage in violation of Labor Code sections 510 and 1197.1; 3) improper wage statements in violation of Labor Code section 226; 4) unreimbursed business expenses in violation of Labor Code section 2802; 5) waiting time penalties in violation of Labor Code sections 201-203; 6) unfair business practices in violation of Business and Professions Code section 17200; and 7) civil penalties authorized by the Labor Code Private Attorneys General Act of 2004 (PAGA), under Labor Code section 2698 et seq.
Continue Reading Employer’s Rounding Policy Upheld and Employees Lose Their Class Action & PAGA Lawsuit
Don’t Throw Out Your Class-Action Waivers Just Yet
The United States Supreme Court decided last week to resolve a split in the lower courts as to whether the National Labor Relations Act (“Act”) preempts class-action waiver clauses in arbitration agreements between employers and their employees. This is an important development, as the use of such waivers in arbitration agreements (if permissible) can drastically
Unpaid Work Time Is Not Offset By Voluntary Payment
Almost all employers are business people. They are used to credits and debits in handling and accounting for commercial accounts, they are used to the application of credit in one transaction to make up for a shortfall in another. A customer over pays for a delivery in March but under pays by the same amount
Ninth Circuit Weighs In On Class Action Waivers
A new decision from the U.S. Court of Appeals for the Ninth Circuit continues to leave employers uncertain as to the enforceability of class action waivers in arbitration agreements. The Seventh and Ninth Circuits are on one side of the issue, and the Second, Fifth, Eighth, and Eleventh Circuits on the other. The Seventh and
Warning! Know Your Payroll Service Contract!
Many – maybe even most – contracts issued by major payroll processing services contain traps for the unwary. Many employers I speak with turn over all payroll processing responsibilities, including issuance of accurate checks and wage statements and record storage, to their payroll processing service.
This may be a big mistake.
When faced with an