As Tony P’s Dockside Grill prepares to close at the end of June, I’ve found myself reflecting on the profound impact Tony Palermo has had on my life — not just professionally, but personally and profoundly.

I first met Tony P when I was a newly minted lawyer in the early 2000s. My wife and I were having dinner on the patio at Tony P’s — a place that would soon become like a second home — when I heard about a golf tournament hosted by the California Restaurant Association. Knowing the law firm was working at had a connection to the CRA, I decided to cold call Tony and ask if I could join.

He didn’t hesitate. “Sure,” he said warmly, “I’ll set you up with a great foursome.” That simple act of generosity sparked a friendship — and a career trajectory — that I could have never predicted. The partner he placed me with, Greg McNally, became a friend, a client, and a key connection in my journey within California’s restaurant industry.  Greg and I still talk a lot and try to play together in the annual golf tournament. That was just Tony: welcoming, kind, and a connector of people.

A Mentor in Hospitality and Leadership

Tony’s influence extended far beyond that first golf tournament. In 2005, he was instrumental in encouraging me to join the California Restaurant Association Los Angeles Chapter Board of Directors. He believed in my potential when I was still finding my voice as a young attorney. And when I made the leap to start my first law firm in 2007, Tony was there with a smile and a signature Tony P line:

“Well, if it doesn’t work out… at least they can’t take your birthday away from you.”

That line has stuck with me ever since — a reminder to bet on yourself, and to keep your perspective no matter what.

A Place Full of Memories

Tony P’s wasn’t just a restaurant. It was our family’s place. Since my mom first met Tony in 1999 to plan my LMU graduation dinner, we’ve celebrated a lot of events there: birthdays, Friday night dinners, wedding parties, and law firm holiday gatherings.

My wife and I have likely shared over 500 dinners there with our three boys. That spacious, scenic outdoor patio was the perfect refuge for a young family — a place where our kids could be noisy, and we could relax, watch the boats drift by, and enjoy some “no bones about it” (my favorite), bread bowl clam chowder (some of the best I’ve had), burgers, or a round of Tony’s famous Mai Tais.

It became our go-to recommendation for visiting family and friends. Because when you brought someone to Tony P’s, you were bringing them into the heart of Marina del Rey.

The Interview That Said It All

In 2011, I had the privilege of sitting down with Tony for an interview as part of my video series Just Ship It. That conversation was a masterclass in hustle, heart, and the grit it takes to succeed in the restaurant business. Tony shared how he started working in kitchens at age 13 in Detroit, eventually building his culinary foundation through experience, grit, and mentors he called his “angels.”

From those early days — boning out lamb legs in a European-style kitchen, sleeping at the restaurant during remodels, to opening Teasers in Santa Monica and eventually Tony P’s Dockside Grill in 1997 — Tony’s story is an American success story. No silver spoon, no shortcuts. Just hard work, long hours, and a deep love for hospitality.

He spoke candidly in the interview about the realities of the business:

“The restaurant business is hard — but it’s no secret. It’s good food, good service, reasonably priced, and giving people what they want. But to do that, you’ve got to work a lot.”

The video is something I’ll always treasure — a lasting testament to Tony’s wisdom, grit, and generous spirit. You can watch it below.

More Than a Restaurateur — A Community Builder and an “Angel”

Tony wasn’t just running a restaurant; he was building a community. He preached getting involved: in the local chamber, in nonprofit work, and in the CRA. In that same interview, he said:

“Most restaurant guys are the mayor of their own city — but you’ve got to reach out to the other cities.”

Tony and his business partner, Dan Ringwood, didn’t just talk about giving back — they lived it. From fundraisers and legendary beer dinners (where Tony crafted everything on the menu, even the ice cream) to supporting over 400 nonprofits, their generosity rippled throughout the community. Tony P’s wasn’t just a restaurant on the water — it was the heart of Marina del Rey. That spirit extended to the next generation too: Tony and Danny hosted nearly every kindergarten class from St. Anastasia, giving local kids an unforgettable field trip filled with behind-the-scenes tours, laughter, and hands-on learning. For so many, their first real taste of the restaurant world — and of community — began at Tony P’s.

A Legacy That Will Outlive the Closing

The closing of Tony P’s Dockside Grill marks the end of an era, but Tony’s legacy lives on — in the careers he helped launch, the families he fed, the friendships he sparked, and the culture of community he championed. As someone who started as a customer, then became a mentee, friend, and forever fan, and an angel for me, I can say with deep gratitude: Thank you, Tony.

Thank you for welcoming a young lawyer into the restaurant world. Thank you for the laughter, the lessons, and the late nights filled with stories. Thank you for giving my family a place to grow up around a table.

Enjoy your well-earned retirement, Tony and Danny. You’ve fed a city — and you’ve filled our lives with joy.

— Anthony Zaller

The ramping up of enforcement by Immigration and Customs Enforcement (ICE) across California has been expected for some time now. We have hosted multiple webinars earlier this year with this expectation, and now is a good time to review the materials again. What we’re seeing now is not a surprise, and the focus on employer compliance, especially in high-risk sectors like hospitality, agriculture, and construction was anticipated since the end of 2024. Employers who take proactive steps now will be in a far better position to avoid disruption and penalties later.
Here are the key actions California employers should take now:

1. Should You Conduct an I-9 Audit Now?

Yes — and it’s never too early to start.

ICE has emphasized that employers are expected to self-police their I-9 compliance. Internal audits are not only allowed, they are encouraged, provided they are performed in a non-discriminatory manner and any corrections are well-documented.

Some best practices include:

  • Use the latest Form I-9 (dated 01/20/25).
  • Review all sections for completeness and accuracy.
  • Do not backdate changes — cross out errors, correct, and initial with today’s date.
  • Attach memos explaining corrections where necessary.
  • Retain I-9s separately from personnel files for quick access.

Employers must retain I-9s for three years after the date of hire or one year after the date of termination, whichever is later. See our prior post on Form I-9s: Navigating Compliance in 2025, for more information for employer’s responsibilities for Form I-9s.

2. Training Managers and Frontline Staff

Your frontline managers are your first line of defense — and often the first to interact with ICE agents.

Items to consider for training:

  • How to verify documents without discriminating based on nationality or appearance.
  • What to do if ICE arrives: Do not allow entry without a valid subpoena or judicial warrant. Direct agents to the designated company contact.
  • How to post notices (required under California Labor Code within 72 hours of receiving a Notice of Inspection).
  • Document retention and audit procedures.

Consider mock ICE audits or walkthroughs to familiarize managers with response procedures.

3. What Should Employers Say to Employees?

Clear and lawful communication with employees is essential.

When ICE Contacts You or Conducts a Raid:

  • Do not question employees about their immigration status.
  • Do not retaliate or take adverse action based solely on a Notice of Suspect Documents.
  • Post the required employee notification within 72 hours of receiving an inspection notice, per California law.

4. Preparing for ICE Raids or Audits

Create a response plan:

  • Designate a point person and a legal contact (internal or external).
  • Store I-9s centrally — not in personnel files — for fast retrieval.
  • Maintain electronic systems with audit trails and secure document transmission protocols.
  • Consider enrolling in E-Verify (required for remote I-9 verification).

During a raid or visit:

  • Do not voluntarily consent to searches or to allow ICE access to private areas of the business.
  • Do not let ICE into non-public areas without a judicial warrant.
  • Politely decline to provide records until legal counsel is consulted.
  • Keep a log of all interactions with ICE agents.
  • Provide documents only in accordance with the Notice of Inspection or subpoena.

5. Electronic I-9s and Remote Verification

If you use an electronic system to store I-9s:

For remote hires, only E-Verify-enrolled employers may use remote I-9 verification. Be sure to follow all steps, including live document review via video and storing secure copies.

Final Thought: Prepare Now, Avoid Disruption Later

An ICE audit or raid can disrupt the flow of business and may lead to fines for employers. By auditing now, training your team, and establishing clear procedures, you can protect your business from unnecessary penalties and ensure compliance with both state and federal law.

California employers were required by February 14, 2024, under AB 1076, to notify employees bound by noncompetition agreements that these agreements are void and unenforceable—unless a statutory exception applies. With this update to California law, many employers are rightly asking:

How can employers still protect their business interests, proprietary information, and customer relationships when noncompete clauses are no longer allowed?

Fortunately, California law continues to provide strong protections for employers through various statutory and common law doctrines—even without enforceable noncompetition agreements. Below is a discussion of a few key legal tools employers can rely on.

Key Labor Code Protections Still Available to Employers

1. Employees Must Follow Lawful Instructions

Labor Code § 2856

Employees are required to “substantially comply with all the directions of [their] employer” unless the direction is impossible, unlawful, or imposes unreasonable burdens. This gives employers a foundation to enforce clear internal policies about protecting company property and confidentiality.

2. Employees Must Exercise a Reasonable Level of Skill

Labor Code §§ 2858–2859

Employees are bound to:

  • Use reasonable skill in their work unless their lack of skill was disclosed at hiring.
  • Apply all the skill they possess as required by their position.

This provision supports employer expectations for quality work and responsible conduct with sensitive information.

3. Employees Owe a Duty of Loyalty While Employed

Labor Code §§ 2860, 2863

California law still imposes a duty of loyalty. Specifically:

  • Anything an employee acquires by virtue of their employment—except earned compensation—belongs to the employer.
  • Employees with overlapping personal business interests must give preference to the employer’s business.

This means employees may not:

  • Compete with their employer while still employed,
  • Share confidential company information for personal gain,
  • Retain or use company information after separation.

Legal Remedies Beyond the Labor Code

4. Conversion Claims Against Misappropriation

Civil Code § 1712

Employers may bring a conversion claim when an employee wrongfully takes, retains, or fails to return company property (e.g., documents, plans, client lists). Even if consent was initially granted, it can be rescinded—requiring the return of the items.

5. Additional Civil Causes of Action

Employers may also consider the following legal avenues:

  • Unfair Business Practices (Business & Professions Code § 17200) – For deceptive or unfair acts affecting competition.
  • Intentional Interference with Prospective Economic Advantage – When former employees disrupt relationships with customers or prospects.
  • Fraudulent Concealment / Misrepresentation – For knowingly misleading the employer or hiding material facts.
  • Trade Secret Misappropriation (California Uniform Trade Secrets Act – Civil Code § 3426 et seq.) – For the misuse of protected business information.

To qualify as a trade secret, the information must:

  • Derive value from not being generally known, and
  • Be subject to reasonable efforts to maintain secrecy (e.g., NDAs, access controls, internal policies).

Practical Takeaways for Employers

Even though California has outlawed noncompetition agreements, you can—and should—still take action to safeguard your business:

  • Audit employment agreements for compliance and confidentiality clauses.
  • Implement internal policies clearly restricting use and disclosure of proprietary data.
  • Train employees on confidentiality and post-employment obligations.
  • Use NDAs and invention assignment agreements where applicable.
  • Consult legal counsel before pursuing claims to ensure all facts and legal grounds are documented.

Conclusion

Noncompetition agreements may be dead in California—but protecting your business isn’t. With proactive steps and strategic legal tools, employers can still deter unfair competition and preserve the value of their confidential information and client goodwill.

July 1 is just around the corner, and with it comes a series of local minimum wage increases across Southern California. For employers operating in multiple jurisdictions, staying compliant can be complex—but it’s essential to avoid costly penalties and maintain employee trust.

Below is a breakdown of the new rates, followed by a practical compliance checklist tailored for California employers. While this is usually a Friday’s Five article, we’re stretching a bit into seven key steps to keep you covered.

Minimum Wage Increases in Southern California (Effective July 1, 2025)

  • Los Angeles County (Unincorporated Areas): $17.81/hour
  • City of Los Angeles: $17.87/hour (increased from $17.28/hour)
  • Pasadena: $18.04/hour (increased from $17.50/hour)
  • Santa Monica: $17.81/hour (increased from $17.27/hour)
  • West Hollywood (Hotel Workers): $20.22/hour (note: non-hotel employees must be paid $19.65/hour and this rate will be in effect until December 31, 2025)
  • City of San Diego: $17.25/hour has been in effect since January 1, 2025

Note: Other jurisdictions throughout California also have their own minimum wage ordinances. Employers should verify all applicable rates based on their workforce’s location.

7-Step Compliance Checklist for Employers

1. Identify All Applicable Jurisdictions

Determine where your employees are performing work. Local minimum wage ordinances are typically based on work location, not where the business is headquartered.
Tip: For employees who work across multiple cities, you must pay the highest applicable minimum wage.

2. Update “Notice to Employee” Forms (Labor Code 2810.5)

Employers are required to provide non-exempt employees with written notice of wage rates. Update these notices to reflect the new local minimum wage amounts.

3. Review and Adjust Pay Stubs

Pay stubs must accurately reflect current hourly rates. This includes updates to wage lines for hourly workers and any overtime calculations.

4. Post Updated Workplace Notices

Most cities require employers to post official local minimum wage notices in a conspicuous place at each worksite. Make sure your postings are current and legible.

5. Audit Multi-Jurisdiction Work

For employees working in more than one city or county with different minimum wages, ensure your payroll systems and HR teams are calculating wages based on the higher rate.

6. Review Industry Applicable Rates

Certain sectors, such as fast food, healthcare, and hotel workers, have distinct minimum wage requirements. For instance, fast-food workers are entitled to a minimum wage of $20.00 per hour under AB1228, which may be increased soon in 2025. Also, certain healthcare workers will see their minimum wage increase to $24.00 per hour effective July 1, 2025. Click here to see the recently updated DIR’s FAQs for Health Care Workers.  Also in the news is LA City’s recent bill to increase hotel and airport worker’s minimum wage to $30 per hour by 2028.  However, there has been a referendum petition filed against this new bill. 

7. Communicate with Your Workforce

Transparency is key. Let your employees know when changes will take effect, why they’re occurring, and what adjustments they can expect to see.

Final Thoughts

California’s patchwork of local wage laws continues to grow more complex. By reviewing your policies and procedures now, you can avoid last-minute headaches and ensure you’re on solid legal footing. Make sure your HR, payroll, and management teams are aligned and up to date.

Need help auditing your current wage practices or navigating overlapping jurisdictions? Reach out to legal counsel with expertise in California employment law for tailored guidance.

In a first-of-its-kind move, California has finalized groundbreaking regulations that directly address the use of artificial intelligence (AI) and automated decision systems (ADS) in employment. These rules, approved by the California Civil Rights Council in March 2025, signal a clear message: while AI tools can be valuable in recruitment, hiring, and workforce management, they must not be used in ways that discriminate against applicants or employees.

These regulations are expected to take effect later this year, once approved by the Office of Administrative Law. Here’s what California employers need to know.

1. Purpose and Scope of the New Regulations

The regulations aim to ensure that the increasing use of technology in employment decisions complies with the Fair Employment and Housing Act (FEHA). In essence, the rules extend traditional anti-discrimination protections to the digital age by:

  • Defining when and how automated systems are covered under California employment law
  • Prohibiting discriminatory impacts stemming from ADS
  • Setting recordkeeping and notice obligations for employers using these technologies

2. What Is an Automated Decision System (ADS)?

The regulations define an ADS as: “A computational process that makes a decision or facilitates human decision-making regarding an employment benefit,” including tools that rely on AI, machine learning, algorithms, or statistics.

Examples of ADS:

  • Resume screeners
  • Automated interview scoring systems that make predictive assessments about applicant or employee, measure applicant’s or employee’s skills, abilities or characteristics, measure an applicant’s or employee’s personality trait, aptitude, and/or cultural fit, or screen, evaluate, categorize, and/or recommend applicants or employees
  • Video software that analyzes voice or facial expressions
  • Tools that prioritize or rank candidates
  • Systems that direct job ads to certain groups

Excluded: Basic tools like word processors, spreadsheets, and security software—as long as they don’t make or influence employment decisions.

3.  Key Prohibitions and Requirements

No Discrimination: The regulations provide that, “It is unlawful for an employer or other covered entity to use an automated-decision system or selection criteria (including a qualification standard, employment test, or proxy) that discriminates against an applicant or employee or a class of applicants or employees on a basis protected by the Act, subject to any available defense.” 

Specific High-Risk Areas – Criminal Background Checks: Employers may not use ADS to screen for criminal history before a conditional offer. Even after an offer, they must perform individualized assessments and cannot rely solely on automated outputs

Duty to Provide Accommodations: If an AI tool may disadvantage a candidate with a disability or protected characteristic, the employer must offer a reasonable accommodation (e.g., alternative assessment formats).

Third-Party Vendors May Create Liability: If a vendor or recruiter uses an ADS tool on your behalf, you may still be legally responsible. Contracts should clarify compliance responsibilities and include indemnification provisions.

4. Documentation and Compliance Requirements

Employers using ADS must:

  • Retain relevant data, including results of automated decisions and demographic data, for at least four years
  • Keep records separate from personnel files
  • Conduct and document anti-bias testing on AI tools
  • Respond appropriately to testing outcomes

5. Next Steps for Employers

If the regulations are adopted in California, employers should:

  • Review All ADS and AI Tools in Use – Conduct an audit of technologies used in recruiting, hiring, promotions, and discipline.
  • Engage Legal Counsel or Compliance Experts – Evaluate whether the tools are likely to have a discriminatory impact or violate FEHA.
  • Request Transparency from Vendors – Ask for information on bias testing, training data, and system logic.
  • Implement Notice and Accommodation Policies – Clearly inform applicants when ADS will be used and how they can request an accommodation.
  • Use Human Oversight – Do not rely exclusively on AI for employment decisions. A human should review and approve final decisions.

If these regulations are adopted, California could join jurisdictions like New York City, Illinois, and Colorado in regulating workplace AI. While the federal government is still developing its approach, states like California could begin regulating how AI can be used in employment decisions. 

Employers operating in California must treat AI and automation with the same care and diligence as any other employment practice subject to anti-discrimination laws.

More than 15 years after the California Supreme Court decided Hernandez v. Hillsides, Inc. (2009) 47 Cal.4th 272, it remains a foundational case on employee privacy rights. While the employer prevailed, the case clarified where the legal boundaries lie—and why employers should tread carefully when it comes to surveillance.

Here are five (plus one) updated takeaways for California employers navigating privacy in the workplace, along with a refresher on the underlying facts.

Case Background: What Happened in Hernandez v. Hillsides?

Hillsides, Inc., a nonprofit residential facility in Pasadena serving abused and neglected children, discovered that someone had been accessing pornographic websites late at night from a computer located in the shared daytime office of two clerical employees, Abigail Hernandez and Maria-Jose Lopez. The employer, deeply concerned about exposure to inappropriate material given its mission to protect vulnerable children, sought to identify the perpetrator.

After an initial attempt to place a camera in a computer lab proved too broad due to foot traffic, the facility’s director, installed a hidden video camera inside the plaintiffs’ office without notifying them. The camera, concealed among books and toys, was capable of recording video remotely when triggered by motion, but was only activated three times, all after hours and never while the employees were present.

Hernandez and Lopez eventually discovered the camera (a blinking red light gave it away), and although no footage of them existed, they sued for invasion of privacy.

The trial court granted summary judgment in favor of Hillsides, but the Court of Appeal reinstated the privacy claim. Ultimately, the California Supreme Court reversed, siding with the employer—but not without underscoring the delicate balance between employer interests and employee rights.

1. Privacy Expectations Exist—Even in Shared Workspaces

Despite the office being shared and accessible to other staff, the Court acknowledged that Hernandez and Lopez had a reasonable expectation of privacy. The office had a door that could be closed and locked, window blinds, and limited foot traffic—factors that contributed to the Court finding a protected “zone of privacy.”

Tip: If the physical environment gives employees the ability to shield themselves from view, that often creates a reasonable expectation of privacy—even if others can enter.

2. Surveillance Must Be Narrow, Targeted, and Justified

While Hillsides installed the camera without notice, several facts helped its defense:

  • The camera was only aimed at one workstation (Lopez’s),
  • It was activated only three times for limited periods,
  • No images of plaintiffs were ever recorded, and
  • The employer had a legitimate concern—protecting children from exposure to sexual content by stopping a potential staff abuser.

Tip: Surveillance should be a last resort, with a clearly documented purpose and minimal impact on employee privacy.

3. You Can Have a Policy—But It Must Be Specific

Hillsides had a policy stating that employees had no expectation of privacy in computer or email use, but it did not mention physical surveillance or video monitoring. The Court found this policy insufficient to notify employees about the risk of visual monitoring.

Tip: Surveillance of people (e.g., via camera or microphone) requires specific policy language and preferably signed acknowledgments.

4. Intent Matters—But It Doesn’t Excuse Intrusion

While the employer never intended to record Hernandez or Lopez—and in fact took steps to ensure they weren’t captured—intent alone didn’t eliminate the privacy concern. Still, the Court ultimately found that the limited scope, time, and purpose of the intrusion made it not “highly offensive” under California law.

Tip: Always combine legitimate intent with a reasonable, proportionate, and transparent execution plan.

5. You May Win the Case—But Still Lose Trust

The discovery of a hidden camera—even if legally defensible—can deeply damage morale and trust. Hernandez and Lopez were so disturbed they sued, despite no actual footage of them being captured.

Tip: Build a culture where privacy is respected, and where employees understand the business reasons for any monitoring in place.

6. BONUS: Audio Surveillance is a Legal Minefield in California

California is a two-party consent state (Penal Code § 632). Recording any confidential conversation—in person or by phone—without all parties’ consent is illegal, and this includes audio features on video surveillance systems.

Hernandez and Lopez were particularly alarmed when they saw a red blinking light and found the device warm to the touch. Though the employer claimed the device didn’t record audio and plaintiffs were shown footage with no sound, California law would have treated any secret audio recording as a more serious offense.

Tip:

  • Don’t use audio-enabled video surveillance unless you’ve provided clear notice and obtained consent.
  • Include specific audio surveillance disclosures in your employee handbook.
  • Post visible signage where recording occurs.
  • Avoid installing hidden microphones or using cameras that passively record sound in any space where employees talk privately.

Final Thoughts

The Hernandez case remains a benchmark for understanding the boundaries of workplace surveillance in California. It teaches that a well-intentioned policy can still lead to legal exposure if not executed with care—and that privacy isn’t just a legal issue, but a cultural one.

If you’re reviewing or updating your surveillance or privacy policies, especially with emerging tools like smart cameras or AI monitoring, now is the time to revisit your approach with legal counsel., feel free to reach out if we can help you align your approach with current California law.

This post is a little different from my usual employment law updates. Lately, I’ve been thinking a lot about college—not from a legal or employer perspective, but as a parent. My son is at the stage where he’s weighing his college options, and it’s sparked a lot of reflection. Writing this helped me organize the advice for him, and I thought it might be useful to share for any other students or families navigating the decision of where to go to school and what to potentially study.

Here are five things I wish someone had told me when I was 17 or 18, trying to make one of the biggest decisions of my life with very little real-world experience.

1. College Is Still Worth It—But Be Smart About Debt

College is an investment in yourself—your skills, your confidence, your network, and your future opportunities. But debt is real. And while student loans can be considered “good debt” because they support long-term earning power, too much of it can limit your flexibility.

When you’re young, your greatest asset is your ability to take risks—interning at a startup, launching your own venture, moving to a new city. Heavy student debt can close those doors. Borrow what you need, but always ask yourself: Will this debt give me more options, or take them away?

2. Go to School Where You Want to Work and Live

One of the most underrated strategies in choosing a college is geography. If there’s a city, region, or industry hub you want to end up in—go to school there. From day one, you’ll start building a network of professors, classmates, and internship connections that will serve you long after graduation.

Your college years are more than just classes—they’re the start of your professional foundation. Being physically close to where you want to be post-college gives you a huge advantage.

3. Follow Your Gut—There’s No Perfect Formula

Rankings and brochures can only tell you so much. Choosing a college is deeply personal, and at some point, you’ll have to go with your instincts. If a school “feels right,” that matters. You’re choosing a place to live, grow, and stretch yourself—not just collect credits.

And don’t stress too much about making the “perfect” choice. You can transfer. You can change majors. The most important part is to choose intentionally and be prepared to put in the work wherever you go.

4. You Create the Experience—Not the School

Your attitude, drive, and curiosity matter far more than any school’s reputation. If you want your college to be a party school, you’ll find parties. If you want to make it a launching pad for a great career, you can do that too—at any school.

Seek out the best professors. Take on challenges. Ask hard questions. Pursue the internships, projects, and relationships that will make you stand out. You have more control than you think.

5. Learn How You Work—This Is the Time

College isn’t just about academics. It’s your first opportunity to really understand how you operate. When do you do your best thinking? How do you handle stress, deadlines, distractions? What motivates you when no one’s watching?

These are the skills and insights that will carry into every job, every challenge, and every opportunity. College is where you begin to figure out how to lead yourself.

Final Thought

The choice to go to college—or where to go—isn’t final. It’s just the start. Stay flexible. Be intentional. And remember: you are making a major decision in your life, but one that you can adjust if it is not working out as you expected. 

This week’s Friday’s Five covers an important new court decision that offers clarity—and relief—for California employers navigating the state’s complex meal period rules.

In Bradsbery v. Vicar Operating, Inc., the California Court of Appeal confirmed that written, prospective meal period waivers for shifts lasting five to six hours are valid and enforceable—so long as they’re revocable and not coerced. While this outcome aligns with what many employers (and employment defense attorneys) already assumed, it finally provides clear and authoritative guidance for day-to-day compliance.

In this week’s YouTube video, I break down what this decision means, how it fits into the broader legal framework, and what action steps employers should take to stay compliant. Here’s the summary:

1. The Core Legal Issue

The case centered on whether an employer and employee can mutually agree—in advance and in writing—to waive the employee’s 30-minute meal period for short shifts (between 5 and 6 hours).

The plaintiffs argued that these types of waivers shouldn’t be allowed unless done at the time of each shift. The court rejected that view.

2. Court’s Holding: Prospective Waivers Are Valid

The court ruled that written, revocable waivers signed in advance are valid, so long as the employee:

  • Voluntarily consents,
  • Understands the waiver,
  • Can revoke the waiver at any time, and
  • Is not coerced into signing it.

3. Why This Matters

California’s wage and hour laws are notoriously strict. But this decision gives employers a practical, compliant way to manage short shifts without unnecessary administrative burdens. This is especially helpful for industries with variable or part-time scheduling.

4. What Employers Should Do Now

Review Your Waiver Forms – Ensure they are written clearly, state that employees can revoke them at any time, and apply only to shifts of 6 hours or less.

Audit Time Records – Make sure you’re either providing a meal break or have a valid waiver on file for applicable shifts.

Train Managers – They need to understand that waivers are voluntary and that employees can revoke them without any retaliation.

5. Don’t Confuse “On-Duty” Meal Agreements with Meal Period Waivers

The waivers for shifts 6 hours or less that was dealt with in Bradsbery are different than on-duty meal period agreements. Employers need to be sure not to confuse these two different items.  The Wage Orders provide for an “on duty” meal period that is an exception to the required meal break if the following requirements are met:

An “on duty” meal period shall be permitted only when the nature of the work prevents an employee from being relieved of all duty and when by written agreement between the parties an on-the-job paid meal period is agreed to. The written agreement shall state that the employee may, in writing, revoke the agreement at any time.

Wage Order No. 4-2001(a)(emphasis added). Unfortunately, the definition of the “nature of the work” is not clear, and has been construed very narrowly against employers.  For example, the Department of Labor Standards Enforcement (“DLSE”) has issued an opinion letter addressing whether a shift manager in a fast food restaurant working the night shift would be allowed to take a “on duty” meal period.  The DLSE concluded that based on the facts presented in the situation of the fast food restaurant, the nature of the work in the restaurant should not prevent the shift manager from being relieved of all duties for 30 minutes, and therefore the on-duty meal period would not be valid in this context. Click here to download the opinion letter.

Watch the Full Breakdown

I dive deeper into the legal reasoning and practical implications of this new case in this week’s video. You can watch it here:
>>>> Watch on YouTube

As we move deeper into 2025, it’s the perfect time for California employers to return to the fundamentals. With ever-evolving employment laws and aggressive enforcement—especially around wage and hour issues—getting the basics right can mean the difference between smooth operations and costly litigation.

As a preview to our upcoming webinar, “Wage and Hour Back to Basics for California Employers?”—a practical, no-nonsense session covering the most critical issues employers face in 2025, this article is focusing on five common wage an hour issues California employers should routinely audit. Please join us for a deeper dive into these and other key wage and hour issues for California employers, plus all attendees receive a 2025 PAGA Compliance Certificate.  Register for the webinar here. 

Whether you’re scaling a team or managing a legacy workforce, use this as a checklist to stay compliant and protect your business.

1. Payroll Compliance: The Foundation

Payroll isn’t just about issuing paychecks on time. Employers must ensure their systems and practices comply with California’s detailed legal requirements:

  • Established Workweeks and Paydays: Are your workweeks clearly defined and paydays consistently scheduled within required timelines?
  • Wage Statements: Do your itemized wage statements meet all statutory requirements? Common issues include missing hours worked, incorrect rates, or omitting the employer’s name and address.
  • Sick Leave Accruals: Each pay period must include an update on accrued and used paid sick leave as required under California law and may local city and county jurisdictions throughout California. 
  • Vacation Tracking: Ensure vacation policies are documented, accurately tracked, and accrued benefits are reflected properly.

2. Wages and Deductions: Avoiding Costly Errors

Missteps in deductions or reimbursements can lead to major penalties.

  • Permitted Deductions: Only a narrow list of deductions is allowed under California law. Err on the side of caution and consult counsel before withholding anything beyond taxes and benefits.
  • Expense Reimbursement: Are employees reimbursed for work-related expenses such as uniforms, personal cell phone use, mileage, and tools?
  • Final Paychecks: For terminations, final pay must include all wages and accrued vacation, and must be provided according to the requirements under California law.

3. Employee Classification: Exempt vs. Nonexempt (and Contractors)

Improper classification continues to be a top litigation trigger.

  • Exempt Status Review: Ensure duties and salaries meet California’s specific tests for exempt employees. Titles alone don’t determine exemption.
  • Independent Contractors: Use caution post-AB 5. Apply the ABC test to confirm true independent contractor status.

4. Timekeeping: Precision Prevents Problems

Timekeeping issues are among the most frequently litigated wage and hour claims.

  • Overtime Tracking: Ensure nonexempt employees are paid correctly for all overtime, and that policies prohibit unauthorized off-the-clock work.
  • Training Managers: Managers should know how to identify and prevent off-the-clock work—and understand the consequences of ignoring violations.
  • Time Rounding: If rounding is used, the policy must be neutral and not result in underpayment over time.  Employers should note that meal breaks cannot be rounded pursuant to Donohue v. AMN Services, and whether California employers may use time rounding at all is currently being reviewed by the California Supreme Court. Employers are cautioned about using time rounding given these cases.

5. Meal and Rest Breaks: Small Breaks, Big Liability

Meal and rest break violations are usually a key claim for PAGA and class action lawsuits.

  • Handbook and Reminders: Policies must be clearly documented and regularly communicated to employees.
  • Timely Breaks and Premium Pay: Breaks must be timely, and any missed meal or rest periods must be compensated with premium pay (and properly noted on wage statements).
  • Recordkeeping and Training: Are employees recording their meal breaks? Are managers trained to monitor compliance and escalate issues?

Final Thought: Routine Audits Are a Must

Employment laws don’t stand still—and neither should your compliance practices. Schedule a semiannual audit or partner with employment counsel to review these core areas. A proactive approach in 2025 will reduce risk, improve operations, and reinforce your commitment to treating employees fairly.

In the medical world, a fomite is an inanimate object—like a doorknob or keyboard—that can transmit infectious agents from one person to another. While not inherently harmful, fomites become dangerous when they carry viruses that infect new hosts.

This concept has surprising relevance in the workplace. At Zaller Law Group, we’ve seen firsthand how workplace culture can be affected by similarly subtle carriers—employees, habits, or practices that unintentionally spread dysfunction. In this article, we explore how understanding fomites in the workplace can help employers diagnose, manage, and protect company culture.

1. What Is a Workplace Fomite?

Reimagined for the employment context, a fomite is a person, behavior, idea, or workplace practice that carries and spreads negativity, poor morale, or toxic dynamics—often without bad intent.

They are not the source of the problem (the “virus”), but they are the mechanism by which it spreads. Recognizing these fomites allows managers to treat the root cause without alienating valued team members.

Example: An employee who constantly expresses cynicism about leadership might not violate policy, but they may still erode trust and morale over time.

2. Forms Fomites Can Take in the Workplace

Workplace fomites are not limited to people. They can include:

  • Informal routines that bypass official procedures
  • Managers with poor communication styles
  • Client relationships that normalize disrespect
  • Legacy practices that no longer reflect company values

Example: A “star” employee who ignores documentation requirements may influence others to follow suit—putting the company at legal risk despite their strong performance.

Example: A group Slack channel where sarcasm and gossip are the norm can quickly shape team dynamics, even if no policy is technically broken.

3. Fomites Are Not the Virus—So Treat the Contagion, Not the Carrier

It’s crucial to understand that fomites are not inherently toxic. They may be unaware of their impact and often respond well to coaching.

Toxic employees, on the other hand, intentionally disrupt the workplace and typically require a more direct approach, including potential separation.

Example: A supervisor who uses humor to deflect accountability may think they’re building rapport—but might actually be modeling irresponsibility for the entire team.

Correcting the underlying behavior (the “virus”) is often more effective than removing the person (the “fomite”)—especially when that person is otherwise aligned with company values.

4. Fomites Can Import External Contagions Into the Workplace

Just like medical fomites can introduce new pathogens from outside environments, workplace fomites can bring external negativity into the company. These can include:

  • Stress or conflict from personal life
  • Polarizing political discussions
  • Burnout or resentment from previous jobs
  • Viral trends on social media

Example: An employee consumed by divisive news topics might regularly bring those conversations into meetings, shifting focus from business to personal ideology.

While a completely sterile workplace isn’t realistic—or even healthy—leaders must watch for when external issues begin to damage team cohesion or productivity.

5. Some Fomites Are Critical to the Company’s Health

In the medical sense, skin is a fomite—but we obviously can’t function without it. Similarly, some workplace fomites may be high-performing team members or foundational practices that have simply gone unchecked.

Example: A senior leader whose direct style has historically “gotten things done” might now be perceived as abrasive by younger employees—spreading disengagement despite their results.

The goal here isn’t removal. It’s awareness and intervention. The most valuable fomites can become the most powerful allies once they recognize their influence and adjust their approach.

How Employers Can Address Workplace Fomites

Employers can reduce workplace contagion and strengthen company culture by:

  1. Monitoring impact over intention. Focus on how behaviors affect culture—not whether they’re “meant” to be harmful.
  2. Coaching early and often. Most fomites are unaware of their influence and will respond well to clear, constructive feedback.
  3. Evaluating systemic fomites. Practices, traditions, or routines can spread dysfunction even when no one person is at fault.
  4. Encouraging immune-building exposure. Don’t overcorrect. Some discomfort and new ideas are healthy—just watch how they’re transmitted.
  5. Promoting cultural hygiene. Reinforce company values in onboarding, training, and performance management to build resilience.

Diagnose the Real Problem, Don’t Blame the Carrier

At Zaller Law Group, we counsel California employers through the legal and cultural challenges of managing people. Identifying and addressing workplace fomites is a powerful tool in preserving a positive, compliant, and productive environment and reducing litigation exposure.