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California: State Supreme Court Takes a Heavy-Handed Look at Unconscionability in Arbitration Agreements

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August 29, 2019

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In Oto, LLC v. Kho, the California Supreme Court again pushed back on arbitration agreements in employment. The U.S. Supreme Court historically has said that states cannot discriminate against arbitration as a forum for resolving disputes or in favor of some disputes over others. Here, the California Supreme Court attacked the unconscionability of the agreement, meaning that the agreement was unfair in how it was presented to the employee.

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California: AB 5 Cements the Dynamex Independent Contractor Test

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January 1, 2020

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In 2018, in Dynamex Operations West, Inc. v. Superior Court (Lee), the California Supreme Court set forth an ABC test for determining when an individual is an independent contractor rather than an employee for wage and hour-related claims. Specifically, the Court stated that a workers is presumed to be an employee unless the business proves: (A) the worker is free from control and direction of the hirer in connection with the performance of the work, based in contract and in fact; (B) the worker performs work that is outside the usual course of the hiring entity’s business; and (C) the worker is customarily engaged in an independently established trade, occupation, or business of the same nature as the work performed for the hiring entity. The previous Borello standard was left in place for determining independent contractor status for non-wage and hour claims.

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California: Paid Family Leave Extended in 2020

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June 27, 2019, July 1, 2020, and January 1, 2021

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SB 83 was recently enacted to extend Paid Family Leave (PFL) benefits from a maximum of six to eight weeks beginning on July 1, 2020. PFL benefits are used by employees to care for an ill family member or bond with a child. Beginning January 1, 2021, the bill adds benefit coverage for employees participating in a qualifying exigency related to the covered active duty of a qualified family member in the U.S. Armed Forces.

The bill also requires the governor to propose other PFL benefit increases by November 2019. This would include extending coverage up to three months for each parent to take consecutively for baby bonding, increasing the benefit rate up to 90% for low-wage workers, and implementing job protections. Employers should continue to look for ongoing updates on these changes.

Action Items

  1. Review SB 83 here.
  2. Prepare to update employee handbooks and policies where applicable.
  3. Update PFL pamphlets when released by the state.
  4. Subscribers can call our HR On-Call Hotline at (888) 378-2456 for further assistance.

Disclaimer: This document is designed to provide general information and guidance concerning employment-related issues. It is presented with the understanding that ManagEase is not engaged in rendering any legal opinions. If a legal opinion is needed, please contact the services of your own legal adviser.

© 2019 ManagEase

Ninth Circuit: The Dynamex Independent Contractor Test Applies Retroactively

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May 2, 2019

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In Vazquez v. Jan-Pro Franchising, Inc., the Ninth Circuit stated that the California Supreme Court Dynamex decision applies retroactively. Specifically, Dynamex created the ABC test for determining whether an individual is an independent contractor for purposes of state wage and hour laws. Unfortunately, at the time, the California Supreme Court did not indicate whether or not Dynamex was to apply retroactively. Now, the Ninth Circuit has officially answered that question.

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California: Employees Can Provide Implied Consent to Arbitration Agreements Over Their Own Objections

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April 10, 2019

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In Diaz v. Sohnen Enterprises, the California Court of Appeal stated that an agreement to arbitrate employment disputes was formed by implied consent following notice to the employee. There, the employer notified its employees that it was changing the terms of its dispute resolution agreement, including requiring arbitration of all claims. A copy of the agreement was provided to employees, the terms were discussed in a staff meeting in English and Spanish, and the employees were told that continuing to work for the employer would constitute acceptance of the agreement, regardless if the agreement was actually signed. An employee subsequently indicated her refusal to sign the agreement but intended to continue working. She then filed a discrimination lawsuit against the employer.

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June Updates

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This Short List addresses the following topics:
  1. U.S. Supreme Court: Title VII Claims to the EEOC are Merely Procedural and Not Jurisdictional to Courts
  2. U.S. Supreme Court: State Wage and Hour Rules Don’t Apply to Workers on the Outer Continental Shelf
  3. DOL Issued Updated Poster for Federal Contractors and Subcontractors
  4. California: July 1st REMINDERS for Employers
  5. Emeryville, CA: July 1st Minimum Wage Increase Paused for Small Independent Restaurants
  6. Colorado: Wage Garnishment Reform on the Horizon
  7. Connecticut: Minimum Wage Increasing to $15 an Hour
  8. Minneapolis, MN: Sick and Safe Time Rule Is Still Up in the Air
  9. Kansas City, MO: Bans Pre-Employment Salary History Inquiries
  10. Nevada: Mandatory Safety Training Expanded to Trade Show and Convention Workers
  11. New Jersey: Required Workplace Postings Receive an Update
  12. Texas: Dallas and San Antonio Paid Sick Leave Set to Go into Effect August 1st

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May Updates

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This Short List addresses the following topics:
  1. California: Registered Fictitious Business Names May Be Listed on Pay Stubs
  2. Indiana: Leaving Work to Voluntarily Testify is Not Protected
  3. Kentucky: Attorneys Must Represent Employers at Unemployment Proceedings
  4. New York, NY: Bans Pre-Employment Marijuana Testing in 2020
  5. New York, NY: Prohibits Discrimination Based on Employee Sexual and Reproductive Health Decisions
  6. Westchester County, NY: Updated Guidance Issued on Paid Sick Leave

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April Updates

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This Short List addresses the following topics:
  1. OFCCP: Corporate Scheduling Announcement List Published for Federal Contractors
  2. VEVRAA Hiring Benchmark Lowered for Affirmative Action Plans
  3. Fifth Circuit: Independent Contractor Classification in Oilfield Industry Re-visited
  4. California: NEW Posting Requirement as of April 1, 2019
  5. California: Required Employee Pamphlets Updated
  6. California: Employers Are Liable for Wage and Hour Claims Without Accurate Time Records
  7. Reminder: San Francisco 2018 Employer Reporting Deadline is April 30, 2019
  8. San Francisco, CA: Minimum Wage to Increase July 1, 2019
  9. Massachusetts: State and Federal Overtime Exemptions are Not Identical
  10. Michigan: Paid Sick Leave FAQ’s and Poster Released
  11. New York: 24-Hour Home Care Pay Decided by Court of Appeal
  12. Oklahoma: Medical Marijuana Accommodations Clarified
  13. South Carolina: Labs Liable to Workers for False Positive Drug Tests

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California: New Independent Contractor Test for Domestic Caregivers

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January 11, 2019

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In Duffey v. Tender Heart Home Care Agency, LLC, the California Court of Appeal recently applied yet another independent contractor test to domestic caregivers who are subject to the Domestic Worker Bill of Rights (DWBR). Specifically, the DWBR states that an employment relationship exists under two possible scenarios. First, employment occurs “when the hiring entity exercises control over the wages, hours, or working conditions of a domestic worker.” The court noted that an employer need only have control over one of these characteristics, not all three. Second, employment is also defined “when a common law employment relationship has been formed.” This is analyzed using the Borello test.

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