Wage and Hour

Many California employers do not understand their legal obligation to pay “premium pay.” An employer’s failure to understand the obligation to pay “premium pay” when owed to an employee, can result in costly litigation pursuant to California’s Private Attorney General Act (“PAGA”). In general, “premium pay” is extra pay, at an employee’s regular rate of pay, that is owed to an hourly (non-exempt) employee when the employee fails to take a rest or meal period by the required time, due to action by the employer. For example, if an employer needs an employee to take a delayed rest or meal period because the employer is short staffed, the employee is owed one extra hour of pay, for a missed meal or rest period, up to a total of 2 premium pays in one work day. Specifically, Labor Code section 226.7 provides:  “(a) No employer shall require an employee to work during any meal or rest period mandated by an applicable order of the Industrial Welfare Commission. [¶] (b) If an employer fails to provide an employee a meal period or rest period in accordance with an applicable order of the Industrial Welfare Commission, the employer shall pay the employee one additional hour of pay at the employee’s regular rate of compensation for each work day that the meal or rest period is not provided.” For any questions, let us know at Floyd Skeren Manukian Langevin, (818) 206-9222. 

The Department of Labor (DOL) is reporting that a company, California Cartage Company LLC, which is based in Long Beach, California, will pay $3,573,074 to 1,416 employees after the DOL found the company violated federal contract provisions of the McNamara-O’Hara Service Contract Act (SCA).

Bloomberg News is reporting that Wells Fargo & Co. must pay $97 million to home mortgage consultants and private mortgage bankers in California who didn’t get the breaks they were entitled to under the state’s stringent labor laws.

In a long anticipated decision, the California Supreme Court in  Dynamex Operations West, Inc. v. Superior Court of Los Angeles, No. S222732 (Cal. Sup. Ct. Apr. 30, 2018), has adopted a new test, known as the “ABC” test for determining whether an individual is an employee versus an independent contractor under the Wage Orders.

The U.S. Supreme Court has ruled that service advisers are salesmen and therefore exempt from overtime requirements, pursuant to federal law (the Fair Labor Standards Act).

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