The California Employment Law Mid Year Legal Update 2023, authored by attorney Jay Rosenlieb, provides information on recent developments in employment and labor law in California. The update highlights key court decisions, proposed legislation, and regulatory actions that impact the relationship between California employees and employers.
Some of the notable points from the update include:
1. Court Decisions:
a. Helix Energy Solutions Group v. Hewitt: The court ruled that employees paid a minimum wage per day were eligible for overtime pay, as the daily payment did not meet the salary test under the Fair Labor Standards Act (FLSA).
b. Quinn v. LPL Financial: The court upheld the constitutionality of labor code provisions exempting securities broker-dealers and investment advisors from the ABC test for independent contractors.
c. Save Local Restaurants: A preliminary injunction was granted to halt the implementation of AB 257, which created the Fast Food Council with the power to set employment terms and conditions in the fast-food industry.
d. Naranjo v. Spectrum Security Services, Inc.: The court determined that Spectrum's failure to pay meal premiums to departed employees was not willful, barring recovery under labor code Section 203.
2. Legislation:
a. Proposed Legislation SB 525: Seeks to increase the minimum wage for healthcare workers to $21 per hour by June 1, 2024, and $25 per hour by June 1, 2025.
b. Proposed Legislation PRO Act: Federal legislation aimed at tightening worker classification and overtime exemptions for employees.
3. Regulatory Actions:
a. Proposed New Federal Overtime Rule: The Department of Labor is expected to introduce new rules addressing the duties test for exemptions and increasing the minimum salary threshold.
b. EEOC Regulatory Process: The EEOC is examining the use of artificial intelligence (AI) in the workplace to address potential discrimination issues.
The update also covers topics such as minimum wage adjustments, wrongful termination, employee leaves and benefits, discrimination, harassment, retaliation, and arbitration and mediation. Employers and HR professionals are advised to consult legal counsel to understand the specific implications of these developments for their businesses.