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Where Agreements Won’t Work – A Word to the Wise Regarding Strict Wage and Hour Liability and Related Claims

This article was first published in Volume 29, Issue 2, 2023 of the California Trusts and Estates Quarterly, reprinted by permission.

I.      SYNOPSIS

Ed was a vibrant and healthy 85-year-old. One day, he decided to sign an advance healthcare directive providing that if his physical condition ever declined, he wished to remain in his home as long as possible with the help of live-in caregivers and other staff, as needed. Although his wife, Donna, and his daughter, Taylor, tried to assist Ed on their own, Ed’s growing needs became more than they could handle. They decided to bring in a live-in caregiver, Paula, who was a family friend. Paula was loosely hired by all three of them. Ed and his wife, Donna, were trustees of their family revocable trust. Taylor was Ed’s acting agent under his advance healthcare directive. No written employment agreement was signed by the parties. Paula was expected to work a “standard” workday, Monday through Friday, but was expected to be “on-call” during the evenings, weekends, and holidays. The family verbally agreed to pay Paula $500 per week, which was more than she made at her last job, so she felt she was adequately compensated. Moreover, over the years, Ed repeatedly promised her that after he passed, his estate would be sure to “take care of her.” Based on this promise, Paula selflessly cared for Ed until he sadly passed away more than ten years later. She did not pursue any other employment, despite having a number of great opportunities.

2023 Was Another Busy Year in the Legislature – New Employment Law Legislation

The Legislature was busy again in 2023, and the Governor signed a number of employment-related bills. This blog post is not intended to discuss the details of every employment bill that was signed into law. Instead, below is a list of certain bills employers should be aware of, and we invite you to join Weintraub Tobin’s FREE “Year in Review” seminar series on January 10, 2024 and January 17, 2024 where some of the bills, and other employment law developments, will be discussed. Come join the experienced team of employment attorneys at Weintraub Tobin and learn about your new compliance obligations. We look forward to seeing you.

California Employers, Forget About Non-Compete Agreements for Your Employees!

On September 1, 2023, California Governor Gavin Newsom signed SB 699 into law, which will bolster California’s prohibition of non-compete agreements.

The prohibition of non-compete agreements is not new news. Non-compete agreements were not enforceable prior to SB 699 being signed into law under California Business and Professions Code section 16600. The Code section explains how every contract restraining anyone from engaging in a lawful profession, trade, or business of any kind is void, except under limited statutory exceptions. SB 699, which will be codified as Business and Professions Code section 16600.5 and go into effect on January 1, 2024, reiterates existing law and extends the reach of California’s restriction on non-compete agreements. The new law:

CA Supreme Court Holds Compelling Arbitration of Individual PAGA Claim Does Not Strip Standing to Litigate Representative Claims

Yesterday, the California Supreme Court, in Adolph v. Uber Technologies, Inc., addressed the United States Supreme Court’s decision in Viking River Cruises, Inc. v. Moriana, 142 S.Ct. 1906 (2022). The much-anticipated Adolph decision, addresses the question of whether an “aggrieved employee,” who has been compelled to arbitrate individual PAGA claims (i.e. Labor Code violations allegedly suffered by the plaintiff in an individual capacity), loses standing to pursue non-individual PAGA claims (i.e. Labor Code violations allegedly suffered by other employees) in court. 

HAPPY PRIDE MONTH! Now More Than Ever Is A Good Time To Remind Folks That LGTBQ+ Employees Have Rights Under CA Employment Law

If you’ve been reading or watching the news in recent months, you have surely seen a large amount of press on various states and municipalities introducing laws to restrict certain rights of those in the LGTBQ+ community. According to a CCN report a few weeks ago, American Civil Liberties Union data reveals that state legislatures across the country have introduced a combined 417 anti-LGBTQ bills in roughly the first quarter of 2023 – a new record and twice the number of such bills introduced in all of last year. (https://www.cnn.com/2023/06/06/us/hrc-lgbtq-emergency-declared/index.html)

Safe Harbor from Class-Based Waiting Time and Wage Statement Penalties for Employers with “Good Faith Disputes” That Meal or Rest Period Premiums Were Owed — the Latest Chapter in the Naranjo Saga

Almost exactly one year ago, the California Supreme Court issued its decision in Gustavo Naranjo v Spectrum Security Services, Inc. (“Naranjo”), reviewing a decision by the Second Appellate District (the “Appellate Court”) in 2019. As we discussed in our California Employment News episode at that time (available here on YouTube, or here on our podcast) and here on our blog, the Supreme Court’s decision opened the flood-gates for employees to recover waiting-time and wage statement penalties whenever meal or rest period premiums went unpaid. This ruling immediately hyper-inflating the value of many wage and hour class actions across the state. On remand, the Appellate Court halted this inflation in some instances by clarifying that such penalties are not available to a class of employees where the employer has a good faith dispute that the premiums were due.

Will Working from Home Become A Statutorily Protected Right?

The California Legislature is considering whether employees who are currently working from home have a right to continue to do so until the employer provides advance written notice of the need to return to the workplace. Senate Bill (SB) 731, introduced by Senator Ashby, is making its way through the Legislative committee process and was set for hearing on May 18, 2023.

Deadline Approaching: Form I-9 Virtual Inspection of Employment Authorization and Identity Documents will End on July 31, 2023

Employers with remote workforces should take note that they will need to begin physically inspecting new hires’ I-9 documentation again as of August 1, 2023 – and they will need to conduct a physical inspection of employees’ documents that were only virtually inspected during the COVID-19 pandemic.

The U.S. Department of Homeland Security (DHS) and U.S. Immigration and Customs Enforcement (ICE) announced earlier this month that employers will have 30 days to reach compliance with Form I-9 requirements after the “COVID-19 flexibilities” sunset on July 31, 2023.