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Wage and Hour: California Supreme Court Limits Use of Class Action Waivers

Although employers have received some welcome rulings from the California Supreme Court over the past few weeks, a new decision from the high court squelches a tool some employers had used to prevent class action lawsuits in the wage and hour context. In particular, the court ruled that class arbitration waivers in employment arbitration agreements […]

401(K) Cashouts a Popular Choice for Departing Workers

A new study by HR consulting firm Hewitt Associates shows that many workers cash out their 401(k) plans when they leave their jobs. The study, which looked at nearly 200,000 workers with 401(k) plans, found that 45 percent elected to take a cash distribution when departing, while the remainder either kept their savings in their […]

Department of Labor Issues FLSA Guidance in Recent Opinion Letters

Earlier this year, the Department of Labor (DOL) issued opinion letters offering employers guidance regarding certain wage and hour matters under the Fair Labor Standards Act (FLSA). While these opinion letters are nonbinding, courts often defer to these letters when presented with similar issues. The letters also offer employers valuable insight into the DOL’s interpretation […]

News Notes: Employers Continue To Be Targeted

Discrimination lawsuits doubled between 1992 and 1996, according to a new report from the U.S. Courts’ Administrative Office. And the problem is likely to get worse. In May, we reported that employers paid record amounts to the Equal Employment Opportunity Commission (EEOC) over the last few years. Now top EEOC lawyers have promised to step […]

News Notes: New Case Explains When Public Sector Employees Can Be Disciplined For Political Activities

Most public and private employers know it’s illegal to take action against employees because of their political activities. But a recent case highlights an important exception to this rule for public employees who qualify as “policymakers.” A terminated deputy sued a newly elected sheriff, alleging she was forced out of her job because she had […]

GOP Out! Democrats In! What Federal-State Law Conflicts Are Most Likely Now?

Whenever there’s a major power shift in government, it’s time to look at employment law again … and especially at federal-state conflicts. Just over two weeks and counting. Who’s counting? The Democratic Party, of course, anxiously awaiting the day … January 4th  … that their dozen-year exile from control of Congress ends. When power shifts […]

Bulletin Item: Workers’ Compensation Reform Developments Continue

The Assembly Insurance Committee was recently scheduled to vote on the controversial reform measure (ABX4 1) proposed by Gov. Schwarzenegger just after he took office in November. However, the committee postponed the vote, which likely would have resulted in the bill’s defeat. The governor and legislators have now entered into talks to reach a compromise […]

News Notes: Study Reveals Why Many Small Employers Don’t Offer Health Insurance

Some common misconceptions keep small employers from offering health benefits to their employees, according to a recent study by the UCLA/UC Berkeley Health Insurance Policy Program. The study revealed that 38 percent of California employers with 10 to 50 employees don’t offer coverage. The reasons why include these erroneous perceptions: it’s too expensive; it doesn’t […]

Wage and Hour: Governor Signs Minimum Wage Bill

Governor Schwarzenegger has signed into law A.B. 1835, which will boost California’s minimum wage to $8.00 over two years. The first increase, to $7.50, will take effect on Jan. 1, 2007, followed by the final increase to $8.00 on Jan. 1, 2008.