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California: Supreme Court Spells Out “Day of Rest” Rules

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May 18, 2017

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In Mendoza v. Nordstrom, the California Supreme Court clarified the application of the “day of rest” rule as set forth by the California Labor Code.  Generally, employers cannot require employees to work more than six days in a seven-day workweek, unless the employee’s working hours do not exceed 30 hours in one workweek or six hours in any one day.  The California Supreme Court provided guidance on the finer operational points of this “day of rest” rule, summarized below.

California: Commissioned Employees Must be Specifically Paid for Rest Breaks

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February 28, 2017

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Current California wage order regulations provide non-exempt employees a minimum 10-minute rest break for every four hours worked, or major fraction thereof.  These breaks must be counted as hours worked, must be paid at the employee’s hourly rate and cannot be deducted from employee wages.  A

March Updates

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This HR Alert addresses the following topics:
  1. REMINDER: California All-Gender Restroom Signs Effective March 1, 2017
  2. Missouri Becomes a Right-to-Work State on August 28, 2017
  3. New Mexico: Minimum Wage in Certain Cities Increased March 1, 2017

Read more

California: Guidance on Rounding Timekeeping Entries

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December 9, 2016

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The California Court of Appeals recently confirmed that employees may round timecard entries to the nearest tenth of an hour.  In Silva v. See’s Candy Shop, Inc., a former employee brought a class action lawsuit challenging some of See’s timekeeping practices: rounding time card entries up or down to the nearest tenth (six minutes) of an hour, and a grace period in which employees could punch in or out up to 10 minutes before or after their scheduled shift, respectively.  Employees were not to perform work during this grace period and were not paid for time spent punched in during the grace period.  Rather, employees were intended to use such grace period time for personal activities.

Oregon: Manufacturer Employers Must Count Both Daily and Weekly Overtime

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in the Manufacturing Industry

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January 2017

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Between December 2016 and January 2017, the Oregon Bureau of Labor and Industries (“BOLI”) changed its interpretation of overtime hours for employees in a mill, factory, or manufacturing establishment.  A “manufacturing establishment” is “any place where machinery is used for ‘manufacturing purposes’” under specified circumstances.

Breaking News: California Prohibits On-Call and On-Duty Rest Periods

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December 22, 2016

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In Augustus v. ABM Security Services, Inc., the California Supreme Court stated that the Labor Code and Wage Order 4 require employers to give employees off-duty rest periods, including relieving employees of all duties and relinquishing control over how employees spend their time.  As a result, the Supreme Court stated that on-call rest periods are also prohibited, because on-call “status compels employees to remain at the ready and capable of being summoned to action.”  In Augustus, security guard employees were required “to keep their radios and pagers on during rest breaks, to remain vigilant, and to respond when needs arise.”

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

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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.

Sixth Circuit Sets Standard for Employer Constructive Knowledge of Overtime Hours Worked

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May 19, 2016

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The Sixth Circuit recently stated in Craig v. Bridges Bros. Trucking LLC. that an employer has constructive knowledge of an employee working overtime if it would have discovered the overtime by “exercising reasonable diligence.”  The plaintiff, Donna Craig, was a bookkeeper for Bridges who processed payroll, including her own compensation.  Craig frequently worked over 40 hour weeks and recorded her hours worked in time sheets, including overtime.  However, Bridges only paid Craig overtime once.  Craig alleged that Bridges told her she was not eligible for overtime.  On the other hand, Bridges argued that Craig should have known she was eligible for overtime, and that the company was unaware that Craig worked overtime.

Fifth Circuit Affirms Employers Cannot Withhold Optional Expenses from Credit Card Tips

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June 14, 2016

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Generally in the Fifth Circuit, employers can pay employees, who earn tips, less than the minimum wage as long as the employee receives enough in tips to make up the difference.  If not, the employer must make up the difference to ensure the minimum wage is met.  Though the rule seems simple, the complexity of tip credits—including situations such as when tips are shared—can get employers in trouble.  The Fifth Circuit recently highlighted another danger zone, stating that employers cannot hold back portions of credit card tips to pay for optional expenses.

Oregon’s New Requirements for Pay Stubs, Time Records and Wage Notices

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January 1, 2017

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Oregon passed a bill designed to increase employer transparency in wages and payroll records.  Effective January 1, 2017, SB 1857 provides new regulations for: (1) the type of information employers must include on itemized wage statements; (2) when employees can view their payroll records; and (3) prevailing wage rates paid to employees working on public works projects.  The new regulation also provides the Oregon Bureau of Labor and Industries (“BOLI”) with increased enforcement funding derived from the Wage Security Fund to investigate and enforce wage claims.