Avoiding Wage and Hour Litigation L a ura A. Wo lfe 559-433-1300 - PowerPoint PPT Presentation

Avoiding Wage and Hour Litigation L a ura A. Wo lfe 559-433-1300

Wage and Hour Lawsuits Have Increased by More than 400% Mo st c o mmo n a lle g a tio ns a re : • F a ilure to pa y o ve rtime / do ub le time • F a ilure to pa y pre - a nd po st-shift “o ff the c lo c k” a c tivitie s • F a ilure to pro vide me a l a nd re st b re a ks • Misc la ssific a tio n o f e mplo ye e s a s “e xe mpt” o r inde pe nde nt c o ntra c to rs • F a ilure to re imb urse fo r b usine ss-re la te d e xpe nse s

Primary Sources of Wage and Hour Law F e de ra l F a ir L a b o r Sta nda rds Ac t • Co de o f F e de ra l Re g ula tio ns • Ca lifo rnia L a b o r Co de • I ndustria l We lfa re Co mmissio n Wa g e Orde rs • E MPL OYE RS MUST F OL L OW L AW T HAT IS MOST F AVORABL E T O E MPL OYE E S

Fair Labor Standards Act (FLSA) Applie s to e mplo ye e s o f e nte rprise s e ng a g e d in • c o mme rc e o r in the pro duc e o f g o o ds fo r c o mme rc e Bro a d de finitio n • Applie s to mo st a ll e mplo ye rs in Ca lifo rnia •

FLSA Regulates F e de ra l minimum wa g e • Ove rtime a fte r 40 ho urs in a wo rkwe e k • E mplo yme nt o f mino rs • Re c o rdke e ping • Bo na fide b re a ks •

California Labor Code Applie s to a ll e mplo ye rs in Ca lifo rnia • Minimum wa g e ($10 o r $10.50 if o ve r 25 e mplo ye e s) • Ove rtime a fte r 8 ho urs in a wo rkda y o r 40 in a • wo rkwe e k unle ss Wa g e Orde r 14 Do ub le time a fte r 12 ho urs in a wo rkda y • Re c o rd ke e ping , wa g e sta te me nts, va c a tio n, pa id • sic k le a ve

Allegation 1: Failure to Pay Overtime

Overtime 1 ½ time s re g ula r ra te o f pa y fo r a ll ho urs wo rke d • b e yo nd 8 in a wo rkda y* 1 ½ time s re g ula r ra te o f pa y fo r a ll ho urs wo rke d • b e yo nd 40 in a wo rkwe e k* 2 time s re g ula r ra te o f pa y fo r a ll ho urs wo rke d in • e xc e ss o f 12 in a wo rkda y* 1 ½ time s re g ula r ra te o f pa y fo r first 8 ho urs o n the • se ve nth c o nse c utive da y o f wo rk in a sing le wo rkwe e k 2 time s the re g ula r ra te o f pa y fo r a ll ho urs b e yo nd 8 • o n the se ve nth da y *E xc e pt Wa g e Orde r 14 (Ag . wo rke rs – b ut no te c ha ng e b e g inning in 2019)

Overtime Ca lifo rnia la w re q uire s tha t yo u pa y e mplo ye e s fo r • o ve rtime whe the r a utho rize d o r no t. Po lic ie s whe re o ve rtime is no t a llo we d unle ss “pre - • a utho rize d b y e mplo ye r” do no t me a n yo u do no t ha ve to pa y o ve rtime – if the e mplo ye e is “suffe re d o r pe rmitte d” to wo rk, the n yo u must pa y. Yo u c a n disc ipline a ny e mplo ye e who do e s no t • fo llo w yo u po lic y o f pre -a utho riza tio n.

Seven Day Rules L a b o r Co de se c . 552: “No e mplo ye r o f la b o r sha ll • c a use his e mplo ye e s to wo rk mo re tha n six da ys in se ve n.” T his do e s no t pre ve nt a n a c c umula tio n o f da ys o f • re st “whe n the na ture o f the e mplo yme nt re a so na b ly re q uire s tha t the e mplo ye e wo rk se ve n o r mo re c o nse c utive da ys”, if in e a c h c a le nda r mo nth the e mplo ye e re c e ive s da ys o f re st e q uiva le nt to o ne da y's re st in se ve n.

Seven Day Rules (cont’d) T he L a b o r Co de ’ s Se ve n-Da y rule is no t limite d to a • “wo rkwe e k” Wa g e Orde rs re q uire se ve nth da y o ve rtime o nly fo r • ho urs wo rke d “o n the se ve nth c o nse c utive da y o f wo rk in a wo rkwe e k”

Workweek Any se ve n c o nse c utive 24 ho ur pe rio ds sta rting o n • the sa me c a le nda r da y e a c h we e k I f no t de fine d b y the e mplo ye r, wo rkwe e k runs fro m • Sunda y thro ug h Sa turda y Po ssib le to wo rk se ve n o r mo re da ys stra ig ht • de pe nding o n ho w the da ys wo rke d fa ll within a de fine d wo rkwe e k xa mple : Wo rkwe e k runs Sunda y-Sa turda y. E mplo ye e c a n wo rk Mo nda y, E o T ue sda y, We dne sda y, T hursda y, F rida y, Sa turda y in we e k 1 AND Sunda y, Mo nda y, T ue sda y, We dne sda y, T hursda y a nd F rida y in we e k 2 witho ut a c c ruing se ve nth da y o ve rtime

Workweek Me ndo za v. No rdstro m, I nc . – Ma y 2017 • Ca lifo rnia Supre me Co urt a nswe re d the q ue stio n • a b o ut the diffe re nc e b e twe e n wa g e o rde r wo rkwe e ks a nd da y o f re st re q uire me nt unde r L a b o r Co de . “A da y o f re st is g ua ra nte e d fo r e a c h wo rkwe e k. • Pe rio ds o f mo re tha n six c o nse c utive da ys o f wo rk tha t stre tc h a c ro ss mo re tha n o ne wo rkwe e k a re no t pe r se pro hib ite d.”

Workweek Me ndo za v. No rdstro m, I nc . – Ma y 2017 • CA Supre me Co urt a lso de c ide d the issue re la ting to the • C 556 (Se c tio ns 551 a nd 552 (7 th da y six-ho ur rule unde r L re st rule s) sha ll no t a pply to a ny e mplo ye r o r e mplo ye e whe n the to ta l ho urs o f e mplo yme nt do no t e xc e e d 30 ho urs in a ny we e k o r six ho urs in a ny o ne da y the re o f.) Q: Whic h is a n a c c ura te re a ding ? 1) So lo ng a s a n • e mplo ye e is g ive n a t le a st o ne da y o f no mo re tha n 6 ho urs during a o ne -we e k pe rio d, he ma y b e re q uire d to wo rk a ll 7 da ys witho ut a da y o f re st; o r 2) e limina tio n o f the 7 th da y o f re st o nly a pplie s to e mplo ye e s who wo rk no mo re tha n 6 ho urs e a c h a nd e ve ry da y o f the we e k. SC He ld:”[W]e c o nc lude the ‘ six ho urs o r le ss’ da ily • e xc e ptio n is sa tisfie d o nly if e ve ry da ily shift tha t we e k ha s e nta ile d six ho urs o r le ss o f wo rk.”

Workday A c o nse c utive 24 ho ur pe rio d sta rting a t the sa me • time e a c h c a le nda r da y; Ca n b e de fine d b y e mplo ye r; • Ca n ha ve diffe re nt wo rkda ys fo r diffe re nt po sitio ns; • I f no t de fine d b y e mplo ye r, wo rkda y runs fro m 12:01 • a .m. to midnig ht

Regular Rate of Pay Ho urly ra te pa id fo r e mplo ye e ’ s wo rk inc luding a g re e d • ra te (b a se pa y) plus a ll o the r fo rms o f c o mpe nsa tio n o Inc lude s c o mmissio ns, no ndisc re tio na ry b o nuse s, pie c e wo rk e a rning s. • E xa mple : e mplo ye e e a rns $10/ ho ur plus $1 fo r e ve ry widg e t ma de . E mplo ye e wo rke d 60 ho urs a nd ma de 200 widg e ts in a wo rkwe e k. F o r purpo se s o f c a lc ula ting o ve rtime : (60h x $10) + $200 = $800. $800/ 60 ho urs = Re g ula r ra te o f $13.33 a n ho ur. Pre mium pa y fo r o ve rtime : $13.33 x .5 x 20 = $133.33 T o ta l we e kly c o mpe nsa tio n: $800 + $133.33 =$933.33. o Doe s not inc lude g ifts; ho urs pa id b ut no t wo rke d (va c a tio n, sic k, ho lida y, e tc .); e xpe nse re imb urse me nts; disc re tio na ry b o nuse s; E RI SA pla n pa yme nts; o ve rtime pa y

Off ‐ the ‐ Clock Work E mplo ye e s must b e c o mpe nsa te d fo r a ll c lo se ly re la te d dutie s a nd ta sks, e ve n if tho se a c tivitie s a re pe rfo rme d o utside o f re g ula rly sc he dule d ho urs. Pho ne c a lls, te xt me ssa g e s, e -ma ils o utside o f wo rk • Ma king wo rk-re la te d sto ps o n the wa y to o r fro m • wo rk Pe rfo rming a ny wo rk during me a l pe rio ds o r re st • b re a ks “Do nning a nd Do ffing ” •

Travel Time Ordina ry tra ve l time b e twe e n ho me a nd wo rk do e s • no t ne e d to b e c o mpe nsa te d. Ho we ve r, ho me to wo rk tra ve l is c o mpe nsa b le in a n e me rg e nc y tra ve l situa tio n during no n-re g ula r ho urs to a c usto me r’ s pla c e o f b usine ss. T ra ve l during the wo rkda y tha t is pa rt o f the • e mplo ye e ’ s princ ipa l a c tivity is c o nside re d ho urs wo rke d a nd must b e c o mpe nsa te d.

On Call Time T he re is a distinc tio n b e twe e n time spe nt “o n-c a ll” b ut no t a c tua lly pe rfo rming wo rk a nd the time spe nt wo rking a s a re sult o f b e ing o n-c a ll. Unde r b o th sta te a nd fe de ra l la w, a no n-e xe mpt e mplo ye e must b e c o mpe nsa te d fo r the time spe nt wo rking , b ut whe the r c o mpe nsa tio n is re q uire d fo r simply b e ing “o n-c a ll” de pe nds o n the fa c ts o f e a c h c a se a nd in Ca lifo rnia it will de pe nd o n “c o ntro l”.

Allegation 2: Failure to Provide Meal Periods or Rest Breaks

Meal Periods and Rest Breaks Almo st a lwa ys inc lude d with a lle g a tio ns o f o the r • wa g e a nd ho ur vio la tio ns Pe na lty fo r vio la tio n is pa yme nt o f o ne ho ur’ s wa g e • (me a l pe rio d/ re st pe rio d “pre mium”) o Me a l pe rio d a nd re st b re a ks a re se pa ra te vio la tio ns o I f e mplo ye e s misse s mo re tha n o ne re st pe rio d, the re is o nly o ne pe na lty pe r da y; a ssumptio n is me a l pe rio d vio la tio ns a re the sa me b ut this ha s no t ye t b e e n e xpre ssly c o difie d o r rule d o n b y the c o urts. o T hus, a n e mplo ye r c a n b e lia b le fo r up to 2 ho urs o f the e mplo ye e ’ s re g ula r ra te o f pa y, pe r da y, fo r misse d me a l a nd re st pe rio ds.