For some industries, and in particular, construction, periods of slow work are inevitable.  When no work is available, many employers place their employees on “furlough” – an unpaid, non-working status, but still on the Company “books” – because the employer doesn’t want to deal with terminating and re-hiring the employee.  In California, an employer may temporarily furlough but only if the furlough is truly short-term. Under longstanding guidance from the California Division of Labor Standards Enforcement (DLSE) which was confirmed by the Ninth Circuit Court of Appeals in Hartstein v. Hyatt Corporation, the label of “furlough” or “temporary layoff” is not decisive; what matters is the lack of a specific return-to-work date within that pay period.  As such, a furlough that extends beyond the length of the employer’s regular pay period is considered a termination or “layoff” for wage-and-hour purposes.Continue Reading Furloughs Extending Beyond a Standard Pay Period Are Treated as Terminations

In Hirdman v. Charter Communication (8/4/25) 113 Cal.App.5th 376, the Fourth Circuit Court of Appeals was faced with the sole issue of determining the meaning of the phrase “exempt employees” as used in California Labor Code section 246(l)(3).Continue Reading The Term “Exempt Employees” Under the HWHFA Applies to More than “White Collar” Exemptions When Calculating Paid Sick Time

State Minimum Wage Increase

On January 1, 2026, California’s state minimum wage will increase by 40 cents per hour, to $16.90 per hour. This adjustment is a 2.49% increase based on federal inflation data (the U.S. Consumer Price Index for Urban Wage Earners and Clerical Workers).  Employers with workers at or near the current minimum wage should plan accordingly, to ensure wages stay above the minimum.  In addition, exempt workers’ salaries must also be adjusted to at least double the state minimum wage.  The minimum salary for workers classified as exempt will rise to $70,304 per year ($5,858.67 per month) on January 1. Continue Reading California Minimum Wage Set to Increase in 2026

Whether setting pay for a new hire or adjusting compensation for a current employee, employers must navigate a range of legal considerations. In this episode of California Employment News, Weintraub employment attorneys Meagan Bainbridge and Nikki Mahmoudi share key reminders to help employers stay compliant with California’s complex wage and hour laws.Continue Reading California Employment News: California Wage Compliance – Avoiding Legal Pitfalls