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It is an old joke that the world can be divided into people who are good at math and those who go to law school.  Whether you believe the joke or not, math – or in this case, simple arithmetic – can be at the heart of many wage and hour questions.  On March 5, 2018, the California Supreme Court issued an opinion in Alvarado v. Dart Container Corp.  The Court articulated a rule on how an employee’s overtime pay rate should be calculated when the employee has earned a flat sum bonus during a single pay period.  Please be aware of the emphasized language:  flat sum bonus.
Continue Reading Are You Doing it Right? California Supreme Court Clarifies Overtime Rate Calculations

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Unfortunately, both single-plaintiff and class-action wage and hour lawsuits continue to plague California employers. Often employers are sued because of technical violations that occur simply because the employer is unaware of its legal obligations. Come join the Labor and Employment Group at Weintraub Tobin as they discuss the “Ins and Outs” of…

By:   Duyen T. Nguyen

In George Vranish, Jr. et al. v. Exxon Mobil Corporation, 2014 DJDAR 761, January 23, 2014, the Court upheld the terms of a collective bargaining agreement (“CBA”) which set forth overtime pay for Exxon Mobil’s employees. Pursuant to the CBA, Plaintiffs were paid at the overtime premium rate of 1.5 times their regular rate of pay for hours worked over 40 hours in a workweek or over 12 hours in a workday but were not paid overtime for hours worked between the eighth and twelfth hour in a workday. Thus, Plaintiffs argued that they were not paid premium compensation for all “overtime hours worked” as required under Labor Code section 510. That section provides that any work in excess of eight hours in one workday is compensated at 1.5 times the regular rate of pay for an employee and any work in excess of 12 hours in one day is compensated at 2 times the regular rate of pay for an employee.Continue Reading A Collective Bargaining Agreement That Provides For Premium Rates For Overtime Hours Worked Is Not Subject To The Same Overtime Pay Obligations Defined By California Labor Code Section 510

Effective Jan. 1, 2014, the Internal Revenue Service (IRS) will recognize automatic gratuities, a percentage automatically added to a restaurant bill, as a service charge, rather than a tip. The IRS ruling on automatic gratuities isn’t new. This was the result of a June 2012 tax ruling that was delayed to give restaurants and related businesses more time to comply.
Continue Reading Think You Are Leaving a Tip After a Nice Meal, Think Again; You May Be Leaving Someone’s Wages – IRS Ruling On Automatic Gratuity Begins January 2014