Proposed Fair Scheduling Act of 2020 Will Impose Fines and Additional Pay for the Failure to Provide Advance Notice of Worker Schedules

Senate Bill 850, also referred to as the Fair Scheduling Act of 2020, would require grocery stores, restaurants and retail stores to provide employees with 21-day work schedules, at least seven calendar days in advance.

Employers must pay a worker not exempt from overtime a “modification pay” for each previously scheduled shift that the employer cancels or moves to another date or time, each previously unscheduled shift that the employer requires an employee to work, and for each on-call shift for which an employee is required to be available but is not called into work.  If less ...

California Legislature Scrambles to Amend AB 5, The Independent Contractor Disaster

Assembly Bill 5 became effective on January 1, 2020. The law purports to prevent the misclassification of employees as independent contractors by codifying the ABC test established by the California Supreme Court case of Dynamex Operations West, Inc. v. Superior Court of Los Angeles (2018) 4 Cal.5th 903, along with several other tests and requirements which apply to various types of business relationships. In short, the law is very confusing.  Indeed, by all accounts, AB 5 is flawed, perhaps seriously so. Several lawsuits have been filed to challenge its terms and the California ...

Can A Receiver Legally Divert Mail?

Q:  A bank obtained a judgment against me, as a result of a failed business venture. While I have a house, there is no equity above my homestead exemption. I’ve little else, although the bank’s attorney has repeatedly accused me of hiding assets and having interests in businesses and assets owned by my brother and uncle. The bank’s attorney was able to convince a judge to appoint a receiver “in aid of execution” to help the bank collect its judgment. I just found out the receiver has diverted all the mail that is delivered to my house, including not only mail addressed to me, but also ...

New Law Requires that California Employers Provide Two Different Notices of Any Deadline to Withdraw Funds from A Flexible Spending Account

Effective January 1, 2020, Assembly Bill 1554 requires that California employers notify employees who participate in a flexible spending account, including a dependent care flexible spending account, a health flexible spending account or adoption assistance flexible spending account, of any deadline to withdraw funds before the end of the plan year. More specifically, the law requires that two different forms of notices be delivered, one of which may be electronic. The forms of notice may include, but are not limited to the following: email, telephone, text message, postal mail ...

Breaking News: Federal Court Grants Preliminary Injunction To Block AB 51 Employment Arbitration Law

U.S. District Court Judge Kimberly Mueller just granted a preliminary injunction to block Assembly Bill 51 throughout future court proceedings, which will examine the enforceability of the new law.  This is welcome news for California employers because it means that the status quo remains in effect: Employers can continue to require arbitration agreements as a condition of employment for their employees unless and until the court rules otherwise.   

To recap the brief but controversial history of this new law, AB 51 was originally supposed to become effective on January 1, 2020 but ...

A Reminder: The IRS Mileage Rates Have Changed

The 2020 mileage rates used to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes have decreased from last year, or remained unchanged. Specifically, as of January 1, 2020, the standard mileage rates for the use of a car (also vans, pickups or panel trucks) are:

  • 57.5 cents per mile driven for business use, down one half of a cent from the rate for 2019;
  • 17 cents per mile driven for medical or moving purposes, down three cents from the rate for 2019; and
  • 14 cents per mile driven in service of charitable organizations.

The IRS ...

Update: AB 51 Employment Arbitration Law Remains On Hold

Assembly Bill 51, the controversial law that would have prevented employers from requiring employees to enter arbitration agreements, has been put on hold until at least January 31, 2020.  As reported in this blog last week, the law was supposed to go into effect on January 1st, but before that could happen U.S. District Judge Kimberly Mueller issued a temporary restraining order (TRO) pending a hearing on a motion brought by a coalition of businesses that sought to prevent the bill from taking effect.

The motion hearing took place last Friday, January 10th.  During the hearing, Judge ...

Judge Orders Emergency Halt of AB 5 for Truck Drivers

A federal judge issued a temporary restraining order on Tuesday, December 31st, to halt enforcement of California’s Assembly Bill 5 (AB 5), regarding truck drivers, only hours before the law went into effect on January 1, 2020.  AB 5, often referred to as the gig worker law, codifies and expands the “ABC” test set forth in Dynamex Operations West, Inc. v. Superior Court, making it much harder for companies to claim workers are independent contractors.

Although AB 5 exempts a number of professions and services from the ABC test, truck drivers are not included among the exemptions ...

Judge Orders Emergency Halt of AB 51 Employment Arbitration Law

A federal judge issued a temporary restraining order on Monday, December 30, to halt enforcement of California’s Assembly Bill 51 (AB 51), which was scheduled to go into effect on January 1, 2020. AB 51 would have prevented employers from requiring employees to enter arbitration agreements as a condition of their employment for claims brought under California’s Fair Employment and Housing Act and the Labor Code. AB 51 also would allow workers to pursue damages and attorneys’ fees and open employers up to criminal enforcement of up to six months imprisonment for violating AB ...

SB 707: California Continues to Attack Arbitration Agreements

Although popular with employers as a method to expedite the resolution of disputes and reduce costs, arbitration is unpopular with plaintiff’s lawyers and, apparently, the California Legislature. As we wrote about here, Assembly Bill 51 prohibits employers from requiring that employees submit disputes to binding arbitration as a condition of employment. The attack on arbitration agreements continues with Senate Bill 707, set to become law on January 1, 2020. 

SB 707 applies to employment or consumer arbitration agreements and requires that the drafting party pay any fees and ...

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