Reminder About Final Pay Rules in California

California has some of the strictest rules about payment of wages upon termination, and employers get this wrong ALL the time.  For some reason, people seem to think they have 24 hours in which to pay final wages after termination.  Nope, nope, and nope. FINAL WAGES, INCLUDING ALL ACCRUED AND UNPAID VACATION OR PTO, MUST…

Keeping Compliant with Payroll – Retention, Content, and Dates

MAKE SURE YOU KEEP COPIES OF ALL PAYROLL DOCUMENTS BEFORE YOU SWITCH PAYROLL PROVIDERS This issue seems to crop up on nearly a daily basis for us.  My team and I are responding to demand letters from lawyers, asking for the payroll records for an employee.  We are defending wage and hour lawsuits, single employee,…

Understanding California’s Definition of Independent Contractor

Let’s start with a bit of context.  The people who work for you are, generally speaking, employees.  “Employees” get protections of the California Labor Code (overtime, breaks, minimum wage, expenses), which also allows them to sue for many of the violations, often leading to PAGA and class action lawsuits.  They are also governed by similar…

Two Recent Cases About PAGA Go Different Directions

On January 18th, our friends at the California Supreme Court finally issued the long-awaited decision in Estrada v Royalty Mills Inc and handed another blow to those of us trying to defend these PAGA cases.   The Estrada decision held that trial courts lack the inherent authority to strike claims under PAGA based on the argument…

Some Sticky New Sick Leave Issues

As you all should know, California amended its sick leave law effective January 1 of this year and increased the amount of annual days provided to employees from 3 to 5, and the number of hours from 24 to 40.  Obviously, if you are in locales like Los Angeles or Santa Monica where the requirement…

New Year Brings New Minimum Wages

On January 1, the state-wide minimum wage in California rose to $16 an hour, for ALL employers.   When the state minimum wage increases, so, too, does the minimum salary to be exempt.  That salary is now $66,560.   That is the salary regardless of whether your employee works full time or part time – if you…