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California Makes Important Changes to PAGA: Will the Amendments Finally Balance the Scales for Employers? (US)

On July 1, 2024, California Governor Gavin Newsom signed Assembly Bill 2288 and Senate Bill 92 significantly reforming California’s Private Attorney General Act (“PAGA”). Twenty years ago, PAGA was enacted as a mechanism to allow California employees to collect penalties for Labor Code violations on behalf of the state. Since then, the statute has been … Continue Reading

Valuation of Stock Options: Assessing the Risks to Employers When Terminating Employees with Vested Stock Options (US)

A recent California Court of Appeal opinion, Shah v. Skillz Inc., (2024) 101 Cal.App.5th 285, addressed two important questions relating to the valuation of stock options that have been the subject of litigation for many years: Are stock options wages? How are damages measured in a claim for breach of a stock option agreement? Although … Continue Reading

The Clock is Ticking! July 1 Deadline for DOL Overtime Exemption Rule Changes Draws Near (US)

For nearly a year, we have been tracking (see here and here) the US Department of Labor’s (DOL) Final Rule modifying the salary requirements applicable to US employees who are exempt from the Fair Labor Standards Act’s (FLSA) overtime requirement under the executive, administrative, and professional (EAP) “white collar exemptions.” The Final Rule is scheduled … Continue Reading

In a Rare Win for California Employers, Good Faith is Good Enough to Avoid Wage Statement Penalties (US)

As California employers know all too well, the state is notorious for its employee-friendly laws that can be difficult to navigate and create administrative and compliance headaches. Even the most diligent employers can find themselves on the wrong end of the law for minor, inadvertent errors, subjecting them to harsh and expensive penalties. For example, … Continue Reading

Summer State/Local Law Round-Up, Part 2 of 2 (US)

In our post earlier this week, we covered recent developments in state and local labor and employment laws in the states at the beginning of the alphabet. We now turn our attention to developments in the remaining states.… Continue Reading

Summer State/Local Law Round-Up, Part 1 of 2 (US)

Now that we’re almost half-way through 2023, it’s time again to review the developments in state and local labor and employment laws. State legislatures and city councils continue to be very busy making new laws and amending existing laws. In fact, due to the large number of updates, we are splitting our post into two parts. … Continue Reading

Competition and employment – a marriage that does not allow for a prenup …

In our blog here, we noted EU Competition Commissioner Margrethe Vestager’s focus on the evolution of cartels in recent years, with the emergence of purchasing cartels and the focus in the US on ‘no-poach’ agreements, whereby companies agree not to recruit each other’s workers and/or fix wages.  This is similar to a purchasing cartel, except … Continue Reading

State Law Roundup: 2022 Year-End Edition (US)

State and local legislatures were active throughout 2022 in passing laws and ordinances that will impact employers of all sizes and all industries in 2023. Click HERE for our summary of these laws and related developments, including important developments in California, Colorado, Illinois, New York, and elsewhere! If you haven’t already, you might also want … Continue Reading

California Wage and Hour Issues for Employers to Watch in 2023: Is My Time-Rounding System Still Compliant? (US)

Virtually every employer in California has repeated the mantra of “no off-the-clock work” to its employees. But what about those minutes that are “on-the-clock” but remain unpaid because of rounding practices? Since 2012, when the California appellate court decided See’s Candy Shops, Inc. v. Superior Court, 210 Cal. App. 4th 889 (2012), employers have presumed … Continue Reading

Collective agreements – EU to limit impact of competition law on self-employed people

On 9 December, the European Commission published draft Guidelines on the application of EU competition law to collective agreements on the working conditions of solo self-employed people providing services. The draft Guidelines are the product of an initial impact assessment published this time last year and a subsequent consultation with stakeholders from March to May. … Continue Reading

State Law Round-Up: Year-End Edition (US) (Part 2 of 2)

Welcome to Part 2 of the 2021 Year-End Edition of the State Law Round-Up, covering states in the second half of the alphabet. Part 1, covering the first part of the alphabet, can be found here. Maine:  Maine’s “ban-the-box” law, HP 845, went into effect October 18, 2021.  The law prohibits private employers from requesting … Continue Reading

California Legislature Enacts New Employment Laws To Take Effect in 2022 (US)

The California Legislature increased the complexity of employment law in the Golden State by enacting several employment laws that will soon take effect.  Below we summarize key aspects of the more significant new legislation. Intentional Failure to Pay Wages May Constitute the Felony of “Grand Theft” (Assembly Bill 1003) Under current law, employers who wrongfully … Continue Reading

‘No-poach’ agreements – EU catching up with the US on anti-competitive recruitment practices

On 19 October, Margrethe Vestager, Executive Vice-President and Commissioner for Competition of the European Commission, delivered a speech addressing the EU’s current policy when addressing cartels, potential changes to the Commission’s leniency program and recent dawn-raid efforts. Most notably, Vestager spoke about so-called ‘no-poach’ agreements, whereby companies agree not to recruit each other’s workers and/or … Continue Reading

Department of Labor Updates (Yet Again) Its Rules on Paying Tipped Workers (US)

On October 28, 2021, the U.S. Department of Labor (DOL) issued its Final Rule on tipped wages. As Presidential administrations have changed through the years, so too has the DOL’s view regarding the circumstances under which employers can pay tipped workers less than the federal minimum wage. [See this 2019 post for the immediately prior … Continue Reading

US Federal Labor Viewpoints – Week of July 19, 2021

From our Capital Thinking blog, our public policy colleague Stacy Swanson shares the latest federal employment law developments in in the legislative and executive branches during the week of July 19, 2021. *** This is a weekly post spotlighting labor topics in focus by the US legislative and executive branches during the previous week. In this issue, … Continue Reading

California Becomes More Expensive for Employers: Meal and Rest Break Premiums Now Track Overtime and Must be Paid at the Regular Rate of Pay, Retroactively (US)

Issuing the California Supreme Court’s decision in a much anticipated case, Justice Liu on behalf of a unanimous court explained in Ferra v. Loews Hollywood Hotel, LLC that “[t]he calculation of premium pay for a noncompliant meal, rest, or recovery period, like the calculation of overtime pay, must account for not only hourly wages but … Continue Reading

US Federal Labor Viewpoints – Week of July 5, 2021

From our Capital Thinking blog, our public policy colleague Stacy Swanson shares the latest federal employment law developments in in the legislative and executive branches during the week of July 5, 2021. *** This is a weekly post spotlighting labor topics in focus by the US legislative and executive branches during the previous week. In this issue, … Continue Reading

US Federal Labor Viewpoints – Week of May 31, 2021

From our Capital Thinking blog, our public policy colleague Stacy Swanson shares the latest federal employment law developments in in the legislative and executive branches during the week of May 31, 2021. *** This is a weekly post spotlighting labor topics in focus by the US legislative and executive branches during the previous week. In this issue, … Continue Reading

US Federal Labor Viewpoints – Week of March 29, 2021

From our Capital Thinking blog, our public policy colleague Stacy Swanson shares the latest federal employment law developments in in the legislative and executive branches during the week of March 29. *** This is a weekly post spotlighting labor topics in focus by the US legislative and executive branches during the previous week. In this issue, … Continue Reading

Spring State Law Round-Up (CT, IL, OH, NY, PA, DC)

State legislatures have been busy in 2021 passing new employment-related laws. Here we look at some of the highlights of new laws in Connecticut, Illinois, Ohio, New York, Pennsylvania, and Washington, D.C. Connecticut is the latest state to prohibit discrimination based upon traits historically associated with race, including hair texture, protective hairstyles such as wigs … Continue Reading

Recent Ninth Circuit Equal Pay Act Decision A Reminder To Examine and Eliminate Gender-Based Pay Disparity (US)

On Monday, March 15, 2021, the Ninth Circuit Court of Appeals reversed, in part, a district court’s order denying a federal Equal Pay Act (“EPA”) claim filed by a former University of Oregon tenured psychology professor who claimed she was paid significantly less than her male colleagues. The decision serves as a reminder to employers … Continue Reading

Fifth Circuit Issues Timely Reminder Regarding the Importance of Employers Maintaining Accurate Wage Records (US)

A recent decision from a federal appeals court highlights the perils for employers associated with lax recordkeeping of employee work hours and wage information. It is well-established that every employer covered by the Fair Labor Standards Act (“FLSA”) is required to keep certain records for each covered non-exempt worker (i.e., those that are paid on an hourly … Continue Reading

Biden-Led Department Of Labor Pulls The Plug On Voluntary Wage And Hour Compliance Program (US)

In early 2018, we reported [see here and here] that the U.S. Department of Labor (DOL) had launched a pilot program to encourage employers to voluntarily report violations of the Fair Labor Standards Act (FLSA) minimum wage and overtime requirements. Employers who opted into the self-reporting pilot program, called the Payroll Audit Independent Determination (PAID) … Continue Reading

State Law Round-Up: Year End Edition – PART TWO (Illinois – Washington, D.C.) (US)

In Part One of our year-end State Law Roundup, we covered national minimum wage developments and developments in states at the beginning of the alphabet: California, Colorado, Connecticut, Georgia, and Hawaii.  In Part Two below, we look at developments in the rest of the states (and localities), from Illinois to Washington D.C. Illinois: Illinois employers … Continue Reading
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