California law treats “tips” (defined as any discretionary gratuity left by a customer for a server) as a strange kind of compensation — which may belong to the employee who initially received the tip, other employees involved or, for certain purposes, even the employer itself. Given the confused property rights involved, businesses are often unsure
Wage & Hour Law
Costly Mistake of Misclassifying Independent Contractors
Many California companies have recently been sued and had an assessment issued against them by the California Employment Development Department (“EDD”) for unpaid payroll taxes because the company allegedly misclassified its California workers as independent contractors rather than employees.
If a company improperly classifies a worker as an independent contractor, it may face liability from…
On-Call Time – When Do Employers Have To Pay?
By Anthony Zaller on
Posted in New Cases, Wage & Hour Law
The question whether an employer is obligated to pay an employee for time on-call depends on interpretation of the term “hours worked.”
In a recent opinion regarding class action issues (Ghazaryan v. Diva Limousine, LTD), an appellate court offered an analysis of what would be considered “hours worked” and, therefore, entitling the employee…
California Supreme Court Grants Review Of Another Meal And Rest Break Case: Brinkley v. Public Storage Inc.
By Anthony Zaller on
Today, the California Supreme Court granted reivew of Brinkley v. Public Storage, Inc.:
BRINKLEY v. PUBLIC STORAGE INC.
Case: S168806, Supreme Court of CaliforniaDate (YYYY-MM-DD): 2009-01-14
Event Description: Review granted/briefing deferred (8.512(d)(2) civil case)
Notes:
The petition for review is GRANTED. Further action in this matter is deferred pending consideration and disposition of
…
Appellate Court Allows Class Action Certified For Limousine Driver Case
By Anthony Zaller on
In Ghazaryan v. Diva Limousine, LTD, the appellate court reversed the trial court’s denial of plaintiff’s class certification motion and remanded the case with instructions that the trial court certify the class action. The case was brought by a limousine driver who filed a wage and hour class action against Diva Limousine, LTD. The…
Wal-Mart Settles Wage & Hour Class Action for $54 Million
By Anthony Zaller on
Wal-Mart settled another wage and hour class action in Minnesota for $54 million. The class includes as many as 100,000 employees who worked from September1998 to November 2008. The judge found that Wal-Mart had violated Minnesota’s Fair Labor Standards Act more than 2 million times. This settlement is similar to a 2005 verdict in…
Petition For Review Filed In Brinkley v. Public Storage
By Anthony Zaller on
Plaintiff filed a petition for review to the California Supreme Court in Brinkley v. Public Storage, Inc. Shortly after the Supreme Court granted review of Brinker v. Superior Court, the Brinkley decision was issued by a lower appellate court (click here to read the opinion in Brinkley v. Public Storage, Inc.). The…
Court Holds That Employer Is Not Liable For Punitive Damages For Labor Code Violations
By Anthony Zaller on
Christine Brewer, a longtime waitress employed at the Cottonwood Golf Club restaurant, quit her job in March 2005. Shortly thereafter, Brewer filed this action against her employer, Premier Golf Properties, LP, dba Cottonwood Golf Club alleging a causes of action for age discrimination, for meal and rest break violations (among other Labor Code violations), sought…
Commissions In California
By Anthony Zaller on
Perhaps one of the most misunderstood and improperly applied issues in California is how to treat commissioned sales people. Here are some of the most common mistakes I’ve encountered that can create substantial liability for employers.
Mistake: Treating all commissioned sales people as exempt employees (i.e. paying them a straight salary).
Usually there are two exemptions…
Update on Brinker v. Superior Court and other California Wage and Hour Issues
I recently conducted a webinar on new developments involving meal and rest breaks, expense reimbursement, paid time off pitfalls, and other wage and hour issues California employers should be aware of. It is approximately 30 minutes. Click here to download, or click here to listen via iTunes.