California Enacts New Protections Against National Origin Discrimination

California recently approved new amendments to the California Fair Employment and Housing Act (“FEHA”), strengthening the protections afforded to applicants and employees, including individuals who are undocumented, on the basis of their national origin.

San Francisco Amends its “Ban-the-Box” Law

San Francisco amended its “ban-the-box” law or Fair Chance Ordinance, further restricting an employer’s ability to consider criminal record information. The new restrictions prohibit employers from inquiring about, requiring disclosure of, or basing employment decisions on convictions for decriminalized behavior, including the non-commercial use and cultivation of marijuana. In addition, employers are prohibited from inquiring about, requiring disclosure of, or basing employment decisions on a person’s conviction history until after a conditional offer of employment.

Employers Cannot Consider Prior Salary History under the Federal Equal Pay Act

On April 9, 2018, the U.S. Court of Appeals for the Ninth Circuit held in Rizo v. Yovino that prior salary alone—or in combination with other factors—cannot justify a wage differential between male and female employees under the Equal Pay Act. No. 16-15372 (Apr. 9, 2018). This Rizo decision overturns a 2017 Ninth Circuit decision, which held that prior salary was a permissible “factor other than sex” under the Equal Pay Act. The Rizo decision is now the federal law across the Ninth Circuit jurisdiction - Alaska, Arizona, California, Hawaii, Idaho, Montana, Nevada, Oregon, and Washington.

California Supreme Court Broadens Definition of “Employee” in Independent Contractor Analysis

Diverging from decades-old precedent, the California Supreme Court in Dynamex announced a significant change in independent contractor law, adopting a strict three-prong test for determining whether an individual is an employee or an independent contractor under the state’s Industrial Work Commission Wage Orders (“Wage Orders). Dynamex Operations West, Inc. v. Superior Court of Los Angeles County, 2018 Cal. LEXIS 3152 (Cal. Apr. 30, 2018).

California/OSHA Housekeeping Injury Standard Takes Effect July 1, 2018

The Cal/OSHA Standards Board (Board) has approved a standard on “Hotel Housekeeping Musculoskeletal Injury Prevention.” This new standard, which takes effect July 1, 2018, is intended to control the risk of musculoskeletal injuries and disorders to housekeepers in hotels and other “lodging establishments.”

California Supreme Court Clarifies Overtime Calculations Involving Flat-Sum Bonuses

The California Supreme Court recently issued a decision, (see Alvarado v. Dart Container Corp. of California), significantly impacting how employers must calculate overtime pay when non-exempt employees receive a flat-sum bonus. The Court ruled that when calculating overtime during pay periods when an employee received a flat-sum bonus, employers must divide the bonus by the number of non-overtime hours actually worked.

Obesity Discrimination Claims Allowed to Proceed Under California Law

California again takes the road less traveled in the employment world. In a case that serves as a reminder of the nation’s evolving understanding of disability, a California Appellate court published an extensive decision defining obesity as a disability and issuing further guidance.

Sick Leave Toolkit Updated for Berkeley, Emeryville and Washington

Our Sick Leave Toolkit, which includes Frequently Asked Questions (FAQs) and model sick leave policies for jurisdictions with sick leave laws, has been updated based on recent agency guidance, rules and/or best practice recommendations.

Minimum Wage Update for Missouri and Minimum Salary Threshold Update for Alaska, California, Colorado, Maine and New York

In addition to the states identified in the December 14, 2017, Insights & Solution newsletter, Missouri will see an increase to its minimum wage come January 1, 2018. Alaska, California, Colorado, New York and Maine will also see increases to the minimum salary threshold for employee exemptions.

FUTA Cost Rate Update

On November 10, 2017, the U.S. Department of Labor confirmed the Federal Unemployment Tax Act (FUTA) credit reduction states and rates for the 2017 tax year. All employers that are subject to FUTA tax and have paid wages in California and/or the Virgin Islands will see an increase in their 2017 FUTA taxes.

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