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Ninth Circuit: Car Dealership Service Advisors Not Exempt from FLSA

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January 9, 2017

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We previously reported on Navarro v. Encino Motorcars, LLC, wherein a group of service advisors at an auto dealership alleged that they did not receive owed overtime compensation. At that time, the Ninth Circuit decided to defer to the U.S. Department of Labor’s interpretation of the Fair Labor Standards Act (“FLSA”); the U.S. Supreme Court reversed this decision and remanded the case to the Ninth Circuit to determine how the FLSA statutes apply to auto dealership service advisors.

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Ninth Circuit: Disclosures for Background Checks Cannot Contain a Liability Waiver

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All Employers with AK, AZ, CA, GU, HI,
ID, MT, NV, OR, WA Employees

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January 20, 2017

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On January 20, 2017, in Syed v. M-I, LLC, the Ninth Circuit Court of Appeals stated that the disclosure required by the Fair Credit Reporting Act (“FRCA”) cannot also contain a liability waiver for conducting the background check in the same document.  Rather, only the disclosure notice and background authorization can be contained within the same document.  Having other language in the disclosure notice violates background check rules under the FRCA.

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Ninth Circuit: Mandatory Class Action Waivers in Arbitration Agreements Are “Illegal”

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 Employers with Alaska, Arizona, California, Guam, Hawaii, Idaho, Montana, Nevada, Oregon and Washington Employees

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August 22, 2016

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The Ninth Circuit has stated that use of mandatory class action waivers in arbitration agreements are prohibited, becoming the second federal circuit court to strike down such agreements.  In short, employers in the states covered by the Ninth Circuit cannot require employees to sign an agreement giving up their right to class action/collective claims as a condition of employment.

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September Updates

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This HR Alert addresses the following topics:
  1. Prior Use of an Invalid Social Security Number Leads to Million Dollar Verdict
  2. 2016 EEO-1 Filing is Due September 30
  3. Ninth Circuit: New Remedy Available for Public Employees Making Age Discrimination Claim
  4. California: Employees/Volunteers at Day Care Centers Now Required to be Immunized
  5. San Diego, California: REMINDER – Amendments to Paid Sick Leave Are In Effect
  6. San Mateo, California: Minimum Wage Increases on January 1, 2017
  7. Colorado: Pregnant Workers Fairness Act Poster Now Available
  8. Illinois: Non-Compete Agreements for “Low-Wage Employees” are “Illegal and Void” in 2017
  9. Louisiana: New Poster for Hospitality Employers Required August 1, 2016
  10. New Orleans, LA: City Contractors Prohibited From Conducting Credit Checks
  11. Nevada: Overly Broad Non-Compete Agreements are Wholly Unenforceable
  12. Cleveland, Ohio: Transgender Individuals Must Have Access to Facilities Consistent with their Gender Identity

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August Updates

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This HR Alert addresses the following topics:
  1. Legislation Aimed to Ease the Upcoming Federal Overtime Exemption Regulations
  2. OSHA Posting Requirement Extended to November 1, 2016
  3. Department of Labor Increases Civil Penalties for Violations of Law
  4. IRS Clarifies Tax Treatment of Wellness Reimbursements and Incentives
  5. EEOC Updates Equal Pay Data Rule, Requires More Detailed EEO-1 Reporting for 2017
  6. California: Public Works Contractors and Subcontractors Must Submit Certified Payroll Records Again
  7. District of Columbia: Guide Regarding Transgender Workers Published
  8. Nevada: REMINDER – Workplace Posters Changed July 1, 2016
  9. New Jersey: “Marital Status” Refers to All Types of Marital Status
  10. New York City, New York: Single-Occupant Restrooms Must be Labeled Gender-Neutral

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Ninth Circuit States Employers Must Include Cash-in-Lieu of Benefits Payments in Overtime Calculation

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All Employers with Alaska, Arizona, California, Hawaii, Idaho, Montana, Nevada, Oregon and Washington Employees

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June 2, 2016

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Offering a flexible benefits plan is an oft-cited tool for organizations to improve employee satisfaction, recruitment, and retention.  However, employers should be very careful when designing benefits plans that permit cash-in-lieu of payments, as the City of San Gabriel discovered in a recent case.

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Ninth Circuit States Federal Rounding Regulation Does Not Require Employees to Gain or Break Even

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All Alaska, Arizona, California, Hawaii, Idaho,
Montana, Nevada, Oregon, and Washington Employers

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May 2, 2016

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The Ninth Circuit Court of Appeals stated in Corbin v. Time Warner Entertainment Advance/Newhouse Partnership (“TWEAN”) that the federal rounding regulation for timekeeping, versus actual time worked, does not require employees to gain or break even over each pay period.  Rather, the regulation is intended to calculate wages such that they average out over the long term.  In Corbin, an employee argued that he had wrongfully been deducted minutes of compensable time as a result of the rounding system.

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Ninth Circuit Rules No Tip Pooling Among Employees who are not Normally Tipped

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All Employers who Utilize Tip Pooling Arrangements in Alaska, Arizona, California, Hawaii, Idaho, Montana, Nevada, Oregon, and Washington

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February 23, 2016

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Employers in service industries should take note of the recent decision in Oregon Restaurant & Lodging Assoc. v. Perez, where the Ninth Circuit Court of Appeals upheld a U.S. Department of Labor (DOL) regulation which states that employers cannot require tipped employees to share their tips with untipped employees.  Prior to the decision in the Oregon Restaurant case, there was an ongoing debate among District Courts in the Ninth Circuit regarding the enforceability of the DOL regulation, causing some employers to disregard the DOL regulation entirely.

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States of Colorado and Nevada Enact Laws Prohibiting Applicant and Employee Credit Checks

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July 1, 2013 (Colorado)

October 1, 2013 (Nevada)

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On July 1 and October 1, 2013, Colorado and Nevada will become the ninth and tenth states, respectively, to enact laws restricting the use of credit-related information for hiring or other employment purposes. States that have enacted similar legislation are California, Connecticut, Hawaii, Illinois, Maryland, Oregon, Vermont and Washington. Listed below are summaries of the new Colorado and Nevada laws.

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