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.
Tag: California Corner
Emergency COVID-19 Order Issued in City of Los Angeles: Additional Paid Sick Leave Requirements for Large LA Employers
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
By Executive Order (see 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:
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- provides the affected employees with a notice as described by the California WARN Act;
- provides as much notice as is practicable, including a brief statement of the basis for the reduced notice;
- undertakes the mass layoff, relocation, or termination because of COVID-19-related business circumstances that were not reasonably foreseeable; and
- 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
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
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
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”