Welcome to the Weintraub Tobin Resources Page

Browse below for news, legal insights, information on presentations and events, and other resources from the Weintraub Tobin legal team.


Employee Flare: I Will Have a Venti, Half-Caf., Cappuccino – Hold the Union Propaganda

It is 6am and I am on my way to the San Francisco Bay Area for a deposition. I stop at my favorite Starbucks for a boost. The barista’s are always helpful and courteous. However, do I really need to be faced with the modern day equivalent of the 1980s TGI Friday’s server? According to one Court I may have to endure that and be the unwitting target of union propaganda at the same time. The good news at least is that a recent federal appeals court held that there will not be more than one pro-union pin on the uniform. So at least my favorite coffee house won’t begin to resemble anyone of a dozen state office buildings, full of workers that look like they are headed to a pin trading convention at Disneyland, rather than another day’s work on behalf of the State’s citizens.

The Starbucks’ Button Case

In 2004, the Industrial Workers of the World (IWW) began a very public organizational campaign to unionize the hourly employees at four Starbucks locations in New York. Starbucks mounted an anti-union campaign in an effort to restrict the growth of pro-union sentiment.

The National Labor Relations Board (NLRB) found that Starbucks engaged in a number of restrictive and illegal policies, including: prohibiting employees from discussing the union or the terms and conditions of their employment; prohibiting the posting of union material on bulletin boards in employee areas; and, discriminating against pro-union employees regarding work opportunities.

The unionizing effort created a significant challenge for the company. During the unionization effort, Starbucks prohibited employees from wearing pro-union buttons with their uniforms. The NLRB predictably took issue with the practice. Starbucks reached an informal settlement agreement with the NLRB and began prohibiting employees from wearing more than one pro-union button at a time.

But that was certainly not the end of this story. After the settlement, the Starbucks managers had employees wearing pro-union buttons remove all but one of the buttons. Thereafter, another dispute arose.

The NLRB found the Starbucks dress code limiting employees to wearing only one pro-union button was an unfair labor practice. Starbucks appealed and the NLRB ruling on the one-button policy was reviewed by the U.S. Court of Appeals for the 2nd Circuit. The 2nd Circuit concluded that “the [NLRB] has gone too far in invalidating Starbuck’s one button limitation.”

The 2nd Circuit reasoned that Starbucks could overcome this presumption of illegality by the NLRB by showing “special circumstances,” which could include “maintaining a certain employee image (especially with respect to uniformed employees).”

The court then took a look at the Starbucks dress code and company practices related to employees wearing different types of buttons or pins. The Starbucks dress code was well stated, complete and comprehensive. It includes rules about appropriate types and colors of shoes, pants, socks, shirts, undershirts, and jewelry. The Starbucks’ employee handbook stated that the purpose of the dress code is to have employees “present a clean, neat, and professional appearance appropriate of a retailer of specialty gourmet products.”

While that may have ended the Court’s analysis in favor or Starbucks, the Court had to still address the fact that Starbucks encourages employees to wear multiple pins and buttons issued by the Company that advertised company products and promotions. In an expected response to Starbucks’ position the NLRB stated that allowing employees to wear multiple pro-union buttons did not seriously harm Starbuck’s interest in employee image. This position was supported by the argument that “the Company . . . encouraged employees to wear multiple buttons as part of that image.”

Starbucks, on the other hand, argued that allowing employees to wear an unlimited number of pro-union buttons would convert them into “personal message boards” and would “seriously erode” the information conveyed by Starbucks-issued pins promoting company products. Starbucks pointed to an employee who attempted to litter her pants, shirts, hat, and apron with at least eight union pins during her work shift.

In making its decision, the court found that Starbucks is “entitled to oblige its employees to wear buttons promoting its products, and the information contained on those buttons is just as much a part of Starbucks’s public image as any other aspect of its dress code.” The court went on to find that Starbucks is entitled to avoid numerous union buttons distracting customers from its public message. The court ultimately found that Starbucks “adequately maintains the opportunity to display pro-union sentiment by permitting one, but only one, union button on workplace clothing.”

So as we all cheer the 2nd Circuit’s decision we have to think about how this translates into our workplaces.

Companies should be careful to consider perceived discouragement of unionization when implementing new workplace policies. In addition, employers should consider the business justification for workplace rules, especially in the areas of uniforms, dress codes, workplace bulletin boards, and workplace meeting rooms.

What the 2nd circuit does for us however, is give us hope that if we can show that limited and selective restrictions, such as the uniform restrictions at issue in Starbucks, are a reasonable and necessary way to protect your public image, you can limit the display of pro-union insignia.

Now we can thank the almighty Starbucks for more than just our morning caffeine jolt, or the return of the Pumpkin Spice latte. We can show our appreciation for a workplace uncluttered with pro union buttons and other gimmicks.

Changes to California’s Wage Garnishment Law

On September 23, 2012 Governor Brown signed Assembly Bill (AB) 1775 which makes changes to California’s Wage Garnishment Law.

Existing law requires a levy of execution upon the earnings of a judgment debtor to be made by service of an earnings withholding order upon the debtor’s employer. Existing law limits the amount of earnings of a judgment debtor that may be subject to an earnings withholding order to the amount specified by federal law, unless an exception applies. Federal law prohibits the amount of earnings that may be subject to garnishment from exceeding 25% of an individual’s weekly disposable earnings or the amount by which the individual’s disposable earnings for the week exceed 30 times the federal minimum hourly wage in effect at the time the earnings are payable.

AB 1775 defines “disposable earnings” as that portion of an individual’s earnings that remains after deducting all amounts required to be withheld by law. The bill prohibits the amount subject to levy under an earnings withholding order from exceeding the lesser of 25% of the individual’s weekly disposable earnings or the amount by which the individual’s disposable earnings for the week exceed 40 times the state minimum hourly wage in effect at the time the earnings are payable, unless an exception applies.

AB 1775 amends section 706.050 of the Code of Civil Procedure to read as follows:

(a) Except as otherwise provided in this chapter, the maximum amount of disposable earnings of an individual judgment debtor for any workweek that is subject to levy under an earnings withholding order shall not exceed the lesser of the following:

(1) Twenty-five percent of the individual’s disposable earnings for that week.

(2) The amount by which the individual’s disposable earnings for that week exceed 40 times the state minimum hourly wage in effect at the time the earnings are payable.

(b) For any pay period other than weekly, the following multipliers shall be used to determine the maximum amount of disposable earnings subject to levy under an earnings withholding order that is proportional in effect to the calculation described in paragraph (2) of subdivision (a), except as specified in paragraph (1):

(1) For a daily pay period, the amounts shall be identical to the amounts described in subdivision (a).

(2) For a biweekly pay period, multiply the state hourly minimum wage by 80 work hours.

(3) For a semimonthly pay period, multiply the state hourly minimum wage by 86 2/3 work hours.

(4) For a monthly pay period, multiply the state hourly minimum wage by 173 1/3 work hours.

The bill becomes operative on July 1, 2013. On or before July 1, 2013, the Judicial Council will revise the instructions contained in certain documents provided to employers in order to specify the method of computation described above.

Weintraub Tobin office space wins “Tenant Improvement of the Year”

Weintraub Tobin Chediak Coleman Grodin has won “Tenant Improvement of the Year” in the Sacramento Business Journal’s Real Estate Projects competition.

The office remodel for Sacramento’s second largest law firm was lauded by judges for its “energy.” Said one judge: “The design was done tastefully and professionally for a law office, but they had the right dash of pizzazz.”

Weintraub Tobin was honored with the award at a breakfast at the Sheraton Grand Hotel on Friday, September 21, 2012. For the full story on the tenant improvement in the Sacramento Business Journal, click the above link.

Developer: Hines

General Contractor: MarketOne Builders Inc.

Architect: Williams and Paddon Architects and Planners Inc.

Where: 400 Capitol Mall, 10th and 11th Floors

When: Completed June 2011

Size: 44,900 square feet

Weintraub Tobin Announces Lee N. Smith Joins Firm

Download: Lee Smith Joins Weintraub Tobin.pdf

SACRAMENTO / SAN FRANCISCO / LOS ANGELES –Weintraub Tobin Chediak Coleman Grodin Law Corporation, a business law and litigation firm, is pleased to announce that Lee N. Smith has joined the firm as a shareholder in its Real Estate Group and will head up the firm’s emerging environmental and agriculture law practice.

Smith has extensive experience in land use regulation and development, environmental compliance, water law and litigation. “Lee is an outstanding attorney with considerable experience in the real estate arena and we are thrilled to have him join us,” said David Krotine, Chair of the firm’s Real Estate Group.

Smith’s practice over the last 25 years has included cases relating to federal and state water quality, air quality and hazardous materials compliance issues, Prop 65 and Food Safety issues. He has handled cases before the Central Valley Regional Water Quality Control Board, the San Joaquin Unified Air Pollution Control District, and local environmental agencies. He has also been involved in state court litigation concerning the California Environmental Quality Act (CEQA), and Prop. 65 litigation, as well as federal litigation involving the Clean Air Act and the Comprehensive Environmental Response Compensation and Liability Act (CERCLA).

“Lee is a talented attorney. He brings a wealth of knowledge to the firm’s emerging environmental and agriculture law practice. We are proud and honored that an attorney with such high caliber would come and be part of the team at Weintraub Tobin,” says Michael Kvarme, the firm’s Managing Shareholder.

“This is an exciting new chapter in my career and I look forward to bringing a fresh perspective to Weintraub’s real estate group, which already has an enviable track record and impressive reputation,” says Smith.

Seminar: NLRB Update! What Every Employer Needs to Know About Unionization in America!

Now that the Presidential elections are ending, join our Labor and Employment Group and Evolve Partner Group for this important seminar on the National Labor Relations Board and their current focus. This is a critical issue for every employer in America.

Wednesday, November 14, 2012

Check-in 11:00 a.m.

Lunch 11:30 a.m.

Presentation begins at 12:00 p.m.

Location

Brookside Country Club
3603 St. Andrews Dr.
Stockton 95219

For further information visit www.sjshrm.com

SEMINAR: Retaliation, Whistleblowing and Wrongful Termination Claims All Employers Should Avoid

Download: Retaliation and Whistleblowing.pdf

Summary of Program:

Exposure to retaliation claims in the workplace today is like exposure to second-hand smoke in the workplace in the 1960s – it’s everywhere but few people understand the danger.

The Labor and Employment Group at Weintraub Tobin is pleased to offer this very important training session that will help business owners, human resource professionals, and managers understand the ins-and-outs of retaliation, whistleblowing, and wrongful termination claims.

The topics that will be discussed include, for example:

  • Who is a “whistleblower” and under what law?
  • What type of conduct can constitute “retaliation” and under what law?
  • What constitutes “wrongful termination?”
  • Did the employee quit or was [s]he “constructively terminated” (What does that mean?)
  • Can an “at-will” employee be wrongfully terminated?
  • Steps to avoid retaliation, whistleblowing, and wrongful termination claims: effective policies, training, and documentation

Location

Weintraub Tobin Chediak Coleman Grodin
400 Capitol Mall, 11th Floor
Sacramento, CA 95814

Parking validation provided – please park in the Wells Fargo Center garage.

Seminar Program

9:00 a.m. Registration and Breakfast
9:30 a.m. – 11:30 a.m. Seminar

Approved for 2.0 hours MCLE credit;
HRCI credits available upon request.
There is no charge for this seminar.

RSVP

Ramona Carrillo
400 Capitol Mall, 11th Fl.
Sacramento, CA 95814
916.558.6046
rcarrillo@weintraub.com

Do Your Employment Policies Violate the National Labor Reactions Act?

On September 7, 2012, the National Labor Relations Board (NLRB) issued an opinion in Costco Wholesale Corp. v. NLRB. The case is an important one for all employers (regardless of whether their employees are union or non-union). It deals with the NLRB’s continuing focus on what it believes to be over-reaching employment policies that violate Section 7 and/or 8 of the National Labor Relations Act (NLRA). In fact, in the last 12 months, the NLRB’s Acting General Counsel has issued three reports on the issue.

Section 8 of the NLRA states that it is an “unfair labor practice” for an employer to “interfere with, restrain, or coerce employees in the exercise of the rights guaranteed in section 7.” Section 7 of the NLRA provides all employees (union and non-union) with the right to engage in “concerted activities for the purpose of collective bargaining or other mutual aid or protection.”

In Costco, the United Food and Commercial Workers Union (“Union”) began a campaign to organize the meat department at one of Costco’s warehouse locations and filed a petition to represent the employees. According to the Union, during the campaign Costco allegedly unlawfully interrogated its employees by making various statements about their involvement with the Union. The Union brought an unfair labor practice action against Costco on this basis and also challenged certain employment policies that Costco had prohibiting employees from engaging in certain conduct.

What is most disturbing about this case is that the policies at issue are not uncommon and are reasonably aimed at protecting the employer’s and other employees’ confidential information and their reputations. Specifically, Costco’s handbook included policies that prohibited employees from posting or distributing materials on company property, discussing other employees’ private matters (such as leaves of absence and personal health information), and sharing or transmitting employees’ “sensitive information” (e.g. financial information, social security numbers, telephone numbers, emails, and addresses). Costco also prohibited employees from electronically posting statements that “damage the Company, defame any individual or damage any person’s reputation, or violate the policies outlined in the Costco Employee Agreement” and prohibited employees from leaving the employer’s premises without permission. The policies provided that employees who violated the rules could be subject to discipline, up to and including termination.

Nevertheless, the NLRB determined that the policies limiting the posting and sharing of information violated the NLRA and the policy regarding the rule prohibiting statements that damage the Company or any person’s reputation, could be construed by employees as “…prohibit[ing] Section 7 activity.” Therefore, according to the NLRB, an employer’s general prohibition of statements that could damage or defame the company or others could be viewed by the NLRB as violations of employees’ right to “concerted activity.”

How then does an employer draft effective policies in way to reduce the risk of a NLRA violation?

In Costco, the NLRB disapproved of a “broad” prohibition against sharing confidential information or making statements that damage the Company or any person’s reputation, and found that such prohibitions “clearly” encompass concerted communications under the NLRA. The NLRB emphasized that “there is nothing in [Costco’s] rules that even arguably suggests that protected communications are excluded from the broad parameters of the rules.” Also according to the NLRB, the employer’s policy “does not present accompanying language that would tend to restrict its application.”

Given these statements, it would appear that the NLRB expects for an employer’s policies that prohibit the sharing of confidential information or the making of statements that damage the Company or any person’s reputation, include language that clearly states that any protected concerted activities under the NLRA are excluded from such policies.

Recommendation: Based on the Costco decision and the apparent heightened scrutiny by the NLRB of the language of various employment policies, employers are advised to work with their employment counsel to analyze and update their employment policy manuals or handbooks appropriately.

New California Law Restricts How Long Attorneys Can Question Witnesses in Civil Depositions

Gov. Brown signed AB 1875 on September 17, 2012. The new law essentially brings California civil procedure in line with federal civil procedure and, absent an exception or some other relief by the court, limits depositions to seven (7) hours in length.
Effective January 1, 2013, the Code of Civil Procedure will contain a new section 2025.290 that provides that except in those circumstances outlined in the statute, or if a court orders otherwise, a witness’ deposition by all counsel, other than the witness’ counsel of record, shall be limited to seven (7) hours of total testimony. The statute provides that the court shall allow additional time, beyond any limits imposed by this section, if needed to fairly examine the deponent or if the deponent, another person, or any other circumstance impedes or delays the examination.

Some of the exceptions to the 7 hour limitations are:

1. If the parties have stipulated that this section will not apply to a specific deposition or to the entire proceeding.
2. Designated expert depositions.
3. In cases designated by the court as complex cases, unless a licensed physician attests in a declaration served on the parties that the deponent suffers from an illness or condition that raises substantial medical doubt of survival of the deponent beyond six months, in which case the deposition examination of the witness by all counsel, other than the witness’ counsel of record, shall be limited to two days of no more than seven hours of total testimony each day, or 14 hours of total testimony.
4. Employment cases brought by employees for acts or omissions by the employer arising out of or relating to the employment relationship.
5. Person Most Qualified (PMQ) depositions.
6. If a new party who appears in the case after a deposition has concluded, notices a deposition of the same witness.

The Legislature made clear that none of the listed exclusions should be construed to create any presumption or any substantive change to existing law relating to the appropriate time limit for depositions. Also, all parties continue to have the same rights to move for a protective order and the court retains discretion to make any order that justice requires to limit a deposition in order to protect any party, deponent, or other natural person or organization from unwarranted annoyance, embarrassment, oppression, undue burden, or expense.

How May The New Law Affect Arbitration?

The new statute will be part of the Code of Civil Procedure and does not specifically address depositions taken as part of an arbitration. Whether the 7 hour restriction will apply to such depositions will depend on the language of the parties’ arbitration agreement. Since the new statute provides an exception to the time restriction if the parties have stipulated to more time, it is recommended that this issue be specifically addressed in the language of the arbitration agreement. If it is not and the agreement merely incorporates the Code of Civil Procedure, it is likely that the 7 hour limitation will apply to depositions taken during the arbitration.

Upcoming Seminar: Employers: Your Supervisor Did What? A Workshop on How Best to Train Supervisors

Download: Employers Your Supervisor Did What.pdf

The Sacramento Employer Advisory Council In Partnership with the Employment Development Department Present…

Employers: Your Supervisor Did What?

The Answer To This One Question Can Either Make Or Break An Employer’s Case!

• Employment lawsuits represent almost 50% of all lawsuits filed, and almost all employment lawsuits result from a supervisor’s conduct. Not because the supervisor intended to do something wrong, but because the supervisor was not properly trained.

• Employers have the power to reduce their risk of liability by training supervisors on important employment law requirements and teaching them how to respond to various workplace situations.

Let Us Help You Train Your Supervisors

SEAC presents a very special training workshop.

• Join SEAC and its network of experts for an intense half-day workshop designed to teach employers and human resource professionals on how to effectively train supervisors on some of the most challenging workplace issues faced by employers and supervisors every day.

• Workshop participants will learn how to train supervisors on things like dealing with problem employees, managing absences & accommodations, properly responding to complaints and avoiding retaliation, and complying with other legal obligations & important employer policies.

Join Us – We look forward to seeing you at this very important workshop.

Attorney Lizbeth West, Chairman of the Board, will be introducing the speakers.

Wednesday, October 17, 2012

Seminar Program

8:00 a.m.- 8:20 a.m. – Registration and Breakfast

8:20 a.m. – 12:30 p.m – Program

Location

Sacramento State Alumni Center
6000 J Street
Sacramento, CA 98519

Registration available at www.saceac.com

For further information or questions please contact:

Frida Ramirez at 916.227.0368 or Frida.Ramirez@edd.ca.edu

Jim Clarke Named 2013 ‘Lawyer of the Year for Tax Law’ by Best Lawyers

Download: Press Release – Jim Clarke.DOC

Sacramento, Calif.–Weintraub Tobin Chediak Coleman Grodin, a business law and business litigation firm, announces that Jim Clarke has been named Northern California’s Lawyer of the Year in Tax for 2013 by Best Lawyers of America. After more than a quarter of a century in publication, Best Lawyers is designating “Lawyers of the Year” in high-profile legal specialties in large legal communities. Individuals are named to the list based on their particularly high level of peer recognition.

Jim is a shareholder in the firm’s Tax and Corporate Groups. His practice focuses on federal and state income tax, planning and dispute resolution, transactional tax and business planning matters in connection with mergers and acquisitions; structuring and choice of entity planning in connections with business formations; buy-outs; equity financings; reorganizations, acquisitions, business dispositions involving corporate (including nonprofit) and pass-through business entities, and client representation in federal, state and local tax controversy matters.

As part of his executive compensation practice, Jim combines his corporate and tax specialties to work with businesses in the planning and implementation of key employee compensation arrangements; including stock and synthetic equity performance incentives, deferred compensation plans, stock option plans, stock appreciation rights, and phantom stock option plans.

Jim has been recognized as a Northern California Best Lawyer in Tax Law since 2004.

Since it was first published in 1983, Best Lawyers has become universally regarded as the definitive guide to legal excellence. Because Best Lawyers is based on an exhaustive peer-review survey in which more than 36,000 leading attorneys cast almost 4.4 million votes on the legal abilities of other lawyers in their practice areas, and because lawyers are not required or allowed to pay a fee to be listed, inclusion in Best Lawyers is considered a singular honor. Corporate Counsel magazine has called Best Lawyers “the most respected referral list of attorneys in practice.”