City of LA Publishes Rules and Regulations Clarifying COVID-19 Supplemental Paid Sick Leave Order

Caitlin I. Sanders

As we previously reported, on April 7, 2020, Los Angeles City Mayor Garcetti issued an emergency order calling for supplemental paid sick leave for City employees who are not covered by the federal Families First Coronavirus Response Act and who must miss work for reasons related to COVID-19. On April 11, 2020, the Los Angeles Office of Wage Standards (“OWS”) issued rules and regulations clarifying Mayor Garcetti’s supplemental paid sick leave order. The rules and regulations can be found on the OWS website here.

The OWS anticipates updating these rules and regulations, and we will continue to monitor the OWS for the latest guidance.

For the latest updates, please visit Blank Rome’s Coronavirus (“COVID-19”) Task Force page.

Emergency COVID-19 Order Issued in City of Los Angeles: Additional Paid Sick Leave Requirements for Large LA Employers

Caitlin I. Sanders

On April 7, 2020, Los Angeles City Mayor Eric Garcetti issued an Emergency Order requiring certain employers to provide up to 80 hours of supplemental paid sick leave to employees who are not covered by the federal Families First Coronavirus Response Act for reasons related to COVID-19. The Emergency Order can be found on Mayor Garcetti’s website here.

Here are the basic provisions of Mayor Garcetti’s COVID-19 Supplemental Paid Leave Order (“Order”):

Who Is Covered by the Supplemental Paid Sick Leave Order?

Employers with 500 or more employees within the City of Los Angeles or 2,000 or more employees nationally may be required to provide supplemental paid sick leave to employees who are unable to work or telework if they meet the following criteria: (i) they have worked for the same employer from February 3, 2020, through March 4, 2020, and (ii) they perform work in the City of Los Angeles.

Emergency and health services, parcel delivery services, and government agency employees are expressly exempt from the Order. Continue reading “Emergency COVID-19 Order Issued in City of Los Angeles: Additional Paid Sick Leave Requirements for Large LA Employers”

California Suspends WARN 60-day Notice Requirement for COVID-19-Related Layoffs

Michael L. Ludwig

Citing the need to prevent or mitigate the spread of COVID-19, California Governor Newsom acknowledged that California employers have had to close rapidly without providing their employees the advance notice required under California law. Generally, the California WARN Act requires employers to give a 60-day notice to affected employees and both state and local representatives prior to a plant closing or mass layoff.

By Executive Order (see https://www.gov.ca.gov/wp-content/uploads/2020/03/3.17.20-EO-motor.pdf), California is suspending the 60-day notice requirement for an employer that orders a mass layoff, relocation, or termination at a covered establishment on the condition that the employer:

    1. provides the affected employees with a notice as described by the California WARN Act;
    2. provides as much notice as is practicable, including a brief statement of the basis for the reduced notice;
    3. undertakes the mass layoff, relocation, or termination because of COVID-19-related business circumstances that were not reasonably foreseeable; and
    4. includes specified language in the notice advising affected employees that they may be eligible for unemployment insurance.

The Labor and Workforce Development Agency will be providing guidance regarding implementation of the Order by March 23, 2020.

For the latest updates, please visit Blank Rome’s Coronavirus (“COVID-19”) Task Force page.

California Corner: The Employee v. Contractor Saga Continues as Uber and Postmates Face First Defeat in Attempt to Enjoin AB5

Caroline Powell Donelan and Natalie Alameddine

The hopes of California gig economy companies to retain the flexibility to classify workers as independent contractors were dashed this week when a federal district court judge refused to enjoin Assembly Bill 5 (“AB5”), which codifies the “ABC” test for most independent contractor classifications.

Governor Gavin Newsom signed AB5 into law last fall, effecting a seismic change on California’s legal landscape. Effective January 1, 2020, the law makes it nearly impossible for companies to lawfully classify most workers as independent contractors (rather than employees). The bill expands on California Supreme Court’s three-prong “ABC” test from its 2018 Dynamex decision for determining how workers can be classified, which you can read about here. With certain limited statutory exceptions, AB5 provides that, to properly classify a worker as an independent contractor in California, an employer must demonstrate that the worker: (A) is free from the company’s control and direction; (B) performs work outside of the company’s usual course of business; and (C) is customarily engaged in independent work of the same nature as the work performed. There is no balancing, as all three factors must be met. Continue reading “California Corner: The Employee v. Contractor Saga Continues as Uber and Postmates Face First Defeat in Attempt to Enjoin AB5”

Shocker!? Scary New California Employment Laws – Coming to You January 1!

Caroline Powell Donelan and Taylor C. Morosco

California Governor Gavin Newsom went on a bill-signing frenzy earlier this month, enacting 17 new bills into law. Below, we highlight the “Big Five” which will have a certain and critical impact on any business with workers in the Golden State.

AB 51 Prohibiting Mandatory Arbitration. California’s battle against arbitration wages on! For agreements “entered into, modified, or extended” on or after January 1, 2020, AB 51  prohibits employers from requiring current employees or applicants to “waive any right, forum, or procedure for a violation” of the Fair Employment and Housing Act or the California Labor Code. This necessarily means that an employer will not be permitted to require applicants or employees to consent to mandatory arbitration as a condition of employment. Notably, employees may still voluntarily consent to arbitration, and AB 51 does not apply to “postdispute” settlement agreements or “negotiated” severance agreements, terms that beg for clarification. AB 51 prohibits retaliation against individuals who refuse to consent to such agreements and even authorizes injunctive relief and attorneys’ fees to any plaintiff who proves a violation. There is no doubt that this bill will be challenged under the Federal Arbitration Act (“FAA”), which preempts any state law that “stands as an obstacle” to enforcing arbitration agreements. While the bill contemplates and tries to avoid preemption by expressly stating it is not “intended to invalidate a written arbitration agreement that is otherwise enforceable under the [FAA],” similar attempts by the state have been rejected. Continue reading “Shocker!? Scary New California Employment Laws – Coming to You January 1!”

California Passes AB 5: The Lawful Use of Independent Contractors in California is Drastically Limited

Caroline Powell Donelan and Caitlin I. Sanders

Just last year, the California Supreme Court in Dynamex Operations West v. Superior Court (2018) 4 Cal. 5th 903 (“Dynamex”) abruptly replaced the longstanding test in California for determining whether a worker is an independent contractor (versus an employee) with a more stringent “ABC” test for purposes of the California Industrial Welfare Commission (“IWC”) Wage Orders.

Under the “ABC” test, a worker is presumed to be an employee unless the hiring entity can prove that the worker is (A) free from control; (B) providing services unrelated to the hiring entity’s business; and (C) holding him or herself out as an independent business. More on the landmark decision in Dynamex can be found here.

Last week, California Governor Newsom signed into law Assembly Bill (“AB”) 5, which codifies and expands the “ABC” test set forth in Dynamex, making it even more difficult for employers to properly classify workers as independent contractors in California.

What are the basic provisions of AB 5? Continue reading “California Passes AB 5: The Lawful Use of Independent Contractors in California is Drastically Limited”