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By:       Scott M. Plamondon

UPDATED 12/21/2011: Based on the date on which the case was submitted at oral argument, the California Supreme Court was required to render a decision in this matter on or before February 6, 2012. On December 2, 2011, however, the Supreme Court agreed to accept additional briefing regarding whether its decision will be applied retroactively. The additional briefing likely will cause the Court’s decision to be delayed. Based on the current briefing schedule it appears that we could be waiting for a decision until April 2012.

Original Post:  

On November 8, 2011, the California Supreme Court heard oral argument in Brinker Restaurant Corp. v. Superior Court of San Diego County (“Brinker”). As you probably know, the Brinker case has been pending before the California Supreme Court since October 22, 2008. Now, by hearing oral argument on this case, the California Supreme Court has effectively signaled that it will publish a decision within the next 90 days.Continue Reading UPDATED! Brinker: The Wait Is Almost Over

By:       Lizbeth (“Beth”) West, Esq.

Governor Brown signed a significant number of bills into law during the 2011/12 legislative term, many of which will have a direct impact on almost every California employer, regardless of size. Many laws impose new obligations on employers and prevent employers from engaging in what they may otherwise thought was previously permissible. Below is a summary of the employment-related legislation that goes into effect on January 1, 2012 (except where noted).Continue Reading 2012 Brings A Whole New Set Of Obligations And Challenges For California Employers – Failure To Comply Could Be Devastating

This case concerns the lawfulness of defendant Costco Wholesale Corporation’s formula for computing overtime compensation on semi-annual bonuses paid to hourly employees. The trial court determined that defendants’ bonus overtime formula for the class of employees who qualify for the maximum base bonus (plaintiffs) violates California law, and ordered use of a different formula. The court concluded that defendant’s formula violated neither California nor federal law, and reversed the judgment with directions to enter judgment for defendant.

a. The Base Bonus.

Costco pays a formula-based bonus, based on paid hours, to long-term hourly employees. To be eligible for the bonus, paid in April and October, these employees must: (1) have been paid a specified number of hours for continuous service — 8,000 hours (approximately four years) for those hired before March 15, 2004, and 9,200 hours (approximately 4.6 years) for those hired after that date; (2) generally be at the top of their pay scale; and (3) have been employed by defendant on April 1 for the April bonus and October 1 for the October bonus. The maximum semi-annual base bonus amount is $2,000 for those with less than 10 years of service, $2,500 for those with 10 to 14 years of service, $3,000 for those with 15 to 19 years of service, and $3,500 for those with 20 or more years of service.Continue Reading The Proper Calculation of Overtime Pay on Bonus Compensation: Marin, et al. v. Costco Wholesale Corporation

Effective January 1, 2009, Senate Bill 940 creates new wage and hour requirements for temporary service employers. Along with adding section 210.3 to the California Labor Code, SB 940 also amends sections 203, 203.1, 204, 210, 215, 220, and 2699.5 of the Labor Code. Existing law requires that employers pay their employees twice during each…