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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.

New Federal Overtime Rules Mean Changes to Classification of Exempt Workers in All States

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All Employers

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December 1, 2016

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The U.S. Department of Labor (“DOL”) recently released the long-awaited Final Rule (“Rule”) changing overtime exemption requirements under the Fair Labor Standards Act (“FLSA”) affecting all states.  Employers need to review employee classifications for possible changes in preparation of the December 1, 2016 deadline.

U.S. Department of Labor Sweeps West Coast Fast Food Businesses for Pay Compliance

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All West Coast Employers Owning a Fast Food Franchise

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Immediately

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Investigators from the U.S. Department of Labor (DOL)’s Wage and Hour Division are sweeping fast food establishments on the west coast to ensure that proper minimum wage and overtime regulations are being observed. This investigation continues to focus on establishments located in California, Oregon and Washington.

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California Enacts an Increase in Piece-Rate Worker Compensation, with Retroactive Repercussions for Resolving Back Wage Claims Without Litigation

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All California Employers who Employ Piece-Rate Employees

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January 1, 2016

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On October 10, 2015, Gov. Brown signed AB 1513 into law, adding Section 226.2 to the California Labor Code.  This legislation is a response to prior court rulings related to required compensation for mandated breaks and other nonproductive time. Specifically, the bill sets forth minimum compensation requirements for rest and recovery periods and other nonproductive time for piece-rate workers, in addition to and separate from their established piece rates.  Each type of compensation must also be documented on an employee’s paystub.  Additionally, employers who have not been paying piece-workers for this additional time have the opportunity to resolve back claims without litigation.  This statute will become effective on January 1, 2016, but will have retroactive repercussions for wages earned as of July 1, 2012.

This information applies to all companies who employ piece-rate workers in California.  Examples of employees who are compensated as piece-rate workers include, but are not limited to, those who may do installation work, closing financial transactions when paid a flat rate, agricultural work, manufacturing work, logistics work when a piece rate applies to drivers’ deliveries, etc.

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California Takes the Lead in Enhancing Protections for Gender Wage Equality & Wage Transparency

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All California Employers and Employees

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January 1, 2016

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On October 6, 2015, Governor Brown signed into law Senate Bill (SB) 358, referred to as the Fair Pay Act.  The Act amends Labor Code Section 1197.5 to require that employers prove wage disparities among men and women are not gender based.  The Act also penalizes employers for preventing employees from discussing wages.  Finally, it increases recordkeeping requirements.  These requirements apply both to California employers and companies with employees in California.  Although the changes become effective January 1, 2016, employers need to prepare for the effects the changes will create.  Additionally, the Act may lead to increased litigation, because the hurdles are being lowered for plaintiffs to bring lawsuits.  It may also be a gateway for new class action lawsuits, because attorneys will likely be looking for systemic gender wage disparity within individual companies.

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U.S. Dept. of Labor Publishes Proposed Revisions to FLSA Overtime Rules

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All Employers

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July 6, 2015

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After a months-long wait, the U.S. Department of Labor has published a Notice of Proposed Rulemaking (NPRM) regarding amendments to the Fair Labor Standards Act (FLSA) white collar overtime exemption rules. The NPRM was released on July 6, 2015, and outlines new exempt eligibility requirements.

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Labor Code Trumps Wage Order 5, Prompting Change in California Meal Periods

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All California Employers

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February 10, 2015

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There are a number of laws setting down rules on the length and timing of employee meal breaks. Thanks to a suit brought by three healthcare workers in Orange County, California, the provisions of Wage Order 5, set forth by the Industrial Welfare Commission (IWC), have been invalidated by the CA Labor Code Sections 512(a) and 516.

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California Minimum Wage Increases July 1, 2014

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CA Employers and Employees

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July 1, 2014

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The California minimum wage will increase to $9.00 per hour on July 1, 2014. This increase will impact exempt and non-exempt employees, commissioned inside salespersons, payroll processing, and may have a further financial impact upon the organization.

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