Must 100% of Service Charges Be Distributed to Service Employees? A June 27, 2019 California appellate court decision, O’Grady v. Merchant Exchange Productions, Inc., which recently was certified for publication, has unsettled the area of law regarding service charges and gratuities in the hospitality industry. Except where regulated by a contrary local ordinance such as…

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2019 California Legislative Update For Employers It’s been a busy session for the California Legislature, passing multiple employment-related bills that Governor Newsom has signed or that are awaiting his signature. The Governor has until October 13 to sign the pending bills. Below is a topline summary of important bills, some of which will or could…

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On September 12, 2019, the California Supreme Court decided ZB N.A. v. Superior Court and issued a rare win for employers in a year that has brought, among other things, the near-extinction of the independent contractor classification through the expected passage of A.B. 5. Brief Background: The Use of Labor Code Section 558 in PAGA…

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On September 11, 2019, the California Legislature passed Assembly Bill 5, a landmark employment bill that largely codifies the state Supreme Court’s decision in Dynamex Operations West v. Superior Court, which we blogged about here. Although the law has been criticized for numerous industry-specific exemptions, described below, Gov. Gavin Newsom is expected to sign it…

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On April 24, 2019, the U.S. Supreme Court in Lamps Plus, Inc. v. Varela issued the latest in what has become a burgeoning series of impactful rulings related to arbitration agreements in the employment realm: Epic Systems v. Lewis (May 21, 2018) – upholding the enforceability of class action waivers in arbitration agreements (which we…

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