Private Sector News
Ninth Circuit's Ruling Protects Workers During Furloughs and Temporary Layoffs
A recent decision from the Ninth Circuit Hartstein v. Hyatt Corporation (9th Cir. 2023) 82 F.4th 825 strengthened worker protections when employers enact furloughs or temporary layoffs. When an employer furloughs or lays off employees and does not provide a specific return-to-work date within the same pay period, the employees must be paid all earned wages, including accrued vacation time, immediately.
NLRB To Pursue Additional Remedies for Victims of Unlawful Conduct
In a recent memorandum from General Counsel Jennifer Abruzzo, GC 24-04, the National Labor Relations Board (“NLRB”) signaled that it will aggressively pursue full make-whole remedies for all employees harmed by an employer’s unlawful conduct. Under this approach, the NLRB will not only require employers to remove unlawful work rules and contract terms but will also seek to address the lingering effects of the rule or term in the workplace. While the NLRB has traditionally taken this approach in unilateral change and retaliation cases, Abruzzo’s memo urges the NLRB to make affected employees whole in all contexts and represents a significant development in federal labor law enforcement.
Supreme Court Will Decide on Legal Standard for 10(j) Injunctions
When an employer commits a serious unfair labor practice (“ULP”), the General Counsel of the NLRB has the authority to petition a federal court for immediate injunctive relief—known as “10(j).” For example, if an employer fired key Union supporters in the middle of an organizing campaign—like Starbucks has been accused of doing on multiple occasions—the General Counsel can ask a court to reinstate those workers while the NLRB’s months-long (or years-long) administrative process plays out.
Legal Standard for Pregnancy Discrimination Claims in California clarified
A California appellate court in Lopez v. La Casa De Las Madres (2023) 89 Cal.App.5th 364 recently concluded that workers bringing pregnancy discrimination claims must prove: (1) the plaintiff had a condition related to pregnancy, childbirth, or a related medical condition; (2) the plaintiff requested accommodation of this condition, with the advice of her health care provider; (3) the plaintiff's employer refused to provide a reasonable accommodation; and (4) with the reasonable accommodation, the plaintiff could have performed the essential functions of the job.
Finding employer closed location for anti-union reasons, NLRB ordered it to reopen location, and reinstate, provide backpay and applicable moving expenses to illegally fired drivers
On August 25, 2023, the National Labor Relations Board issued Quickway Transportation, Inc., 372 NLRB No. 127 (Aug. 25, 2023). This case arises out of a Teamsters’ organizing drive of truck drivers at a Louisville terminal operated by Quickway. The terminal serviced a transportation contract with the Kroger Company. The Union won a Board election in June 2020. A series of unfair labor practice charges were settled two months later and approved by the Board.
Expanded Rights for Employees to Sue Their Employers for Paid Sick Leave Violations
California is known for its protective paid sick leave laws for workers. Under the Healthy Workplaces, Healthy Families Act of 2014, often referred to as the Paid Sick Leave Law (“PSLL”), most employers are currently required to provide employees with at least three paid sick days per year. The California legislature recently expanded the PSLL with S.B. 616, which increases the paid sick leave requirement to five days per year, effective January 1, 2024.
Governor Newsom Signs SB 423 and SB 4 to Expedite Affordable Housing Construction in California
On October 11, 2023, Governor Newsom signed into law SB 423 and SB 4, two important and related affordable housing production bills aimed at tackling the state’s housing crisis. Governor Newsom explained that he signed the bills because of “simple math—California needs to build more housing and ensure the housing we have is affordable.”
AB 1355 Will Allow Employers to Send Employees Required Information about Unemployment Insurance and Taxes via Email if Employee Opts-In
Assembly Bill (“AB”) 1355 becomes effective on January 1, 2024. The bill authorizes employers to provide specified documents related to benefit claims, such as unemployment insurance, and California earned income tax credits, by email, if the employee opts into receipt of electronic notification.
Wage theft enforcement mechanisms expanded in California
Assembly Bill No. 594 (AB 594) seeks to address wage theft issues in California by introducing an additional method of enforcing the Labor Code. AB 594 permits public prosecutors, including the Attorney General, a district attorney, a city attorney, a county counsel, or any other city or county prosecutor, to independently prosecute certain wage and hour violations that occur within their geographic jurisdiction. Previously, only the Labor Commissioner’s office had this power.
Workplace Violence Prevention, including authorizing a collective bargaining representative to seek a restraining order on behalf of the employee and other employees at the workplace
Senate Bill 553 (SB 553), effective from July 1, 2024, creates the first general industry workplace violence prevention safety requirements in the United States. SB 553 amends the California Labor Code by adding Section 6401.9, which requires covered employers to establish a comprehensive workplace violence prevention plan. This plan must involve employee participation in identifying and addressing workplace violence hazards, coordination among employees, and procedures for seeking assistance from law enforcement agencies. In addition to creating and implementing this violence prevention plan, covered employers must maintain a detailed violent incident log that records all workplace violence incidents, responses, and injury investigations in line with the prevention plan’s guidelines. Unions are encouraged to bargain with employers over these plans and their effects.
AB 647 – Effect on workers when grocery changes ownership
Starting January 1, 2024, the Protect Grocery Workers Jobs Act (AB 647) will protect grocery and warehouse workers’ jobs by strengthening existing statewide grocery worker retention laws and expanding coverage to warehouse workers.
Additional Discrimination Protections for California Workers
Governor Gavin Newson signed into law Senate Bill (“SB”) 497 on October 8, 2023. California state law currently prohibits employers from disciplining, discharging, discriminating, or otherwise retaliating against employees because the employee engaged in certain protected conduct. SB 947 establishes a “rebuttable presumption” in favor of an employee’s claim if an employer retaliates against the employee within ninety (90) days of engaging in protected activity. Protected activity under SB 947 includes making a wage claim or a complaint about unequal pay. The bill establishes that in addition to other remedies, an employer is liable for a civil penalty of up to $10,000 per employee for each violation, awarded to the employee who was retaliated against. The new law goes into effect on January 1, 2024.
A Win for Language Access Rights of Farmworkers
The passing of California Assembly Bill 636 helps ensure H-2A visa farmworkers are properly informed about their legal rights in the workplace.
California employers now prohibited from discriminating against applicants on the basis of prior cannabis use
In a significant development on October 7, 2023, Governor Gavin Newsom signed Senate Bill 700 (“SB 700”) into law, which amends California's Fair Employment and Housing Act (“FEHA”) to extend protection against discrimination to job applicants with a history of prior cannabis use. This new provision is set to become effective on January 1, 2024.
California Expands “Student Athlete Bill of Rights”
College athletes have been consistently denied the right to organize unions, collectively bargain, and receive fair compensation, despite producing billions of dollars for their universities, conferences, and the National Collegiate Athletic Association (“NCAA”). At the federal level, this disparity has been lessened somewhat recently by the ability of certain college athletes to negotiate “name, image, and likeness” compensation deals.
Massive Victory for California Healthcare Workers: First-in-the-Nation $25 Minimum Wage
Thanks to a monumental, years-long effort from healthcare workers and their unions, over 400,000 workers at various healthcare facilities across California will see significant wage increases as early as July 2024. Under Senate Bill (“SB”) 525, the minimum wage for workers who provide direct patient care or support services at large hospitals and dialysis clinics will be raised to $23 in 2024, $24 in 2025, and $25 in 2026. The minimum wage for another group of workers at smaller healthcare facilities will move to $21 in 2024, $23 in 2026, and $25 in 2028. There are separate timelines for workers at community clinics and “financially distressed” healthcare institutions, but in sum, the bill requires progressive minimum wage increases for all covered healthcare workers over the next few years.
SB 616 Increases California paid sick leave requirement from 3 to 5 days
The legislature substantially increased the amount of paid sick leave required by California law. The new law (which takes effect on January 1, 2024) preserves the existing accrual rate under California’s paid sick leave law (one hour accrued for every 30 hours worked). However, employers may use a different accrual method as long as eligible employees accrue (a) no less than 24 hours (or 3 days) of paid sick leave by the end of their 120th day of employment, or (b) no less than 40 hours (or 5 days) of paid sick leave by the end of their 200th day of employment.
SB 150 Promotes Regional Training Partnerships and Requires State Agencies to Incorporate Community Benefits into Project Labor Agreements for Projects over $35M
Senate Bill 150 (“SB 150”) aims to ensure that federal funding received through the federal Infrastructure and Investment Jobs Act (often referred to as the Infrastructure Bill), Inflation Reduction Act, and CHIPS and Science Act is allocated to regional training partnerships and used to promote community benefits.
SB 848 Adding leave for reproductive loss
For the first time ever, California employers with 5 or more employees must provide employees, who have worked for at least 30 days, with 5 days of reproductive loss leave starting January 1, 2024. “Reproductive loss” includes a miscarriage, failed surrogacy, stillbirth, unsuccessful “assisted reproduction” (such as artificial insemination or embryo transfer) or failed adoption. If an employee suffers more than one reproductive loss in a 12-month period, the employer need not grant more than 20 days of leave within 12 months.
AB 1228 Increases Minimum Wage to $20/Hour for Fast Food Workers and Establishes Fast Food Council for Stronger Worker Protections
Under Assembly Bill 1228, the minimum wage for fast food restaurant employees will increase to $20 per hour starting April 1, 2024. The bill also establishes a Fast Food Council within the California Department of Industrial Relations, which is empowered to establish annual minimum wage increases of up to 3.5%, with certain limitations, starting on January 1, 2025. The Fast Food Council also has the authority to establish minimum standards on working hours and other working conditions to maintain the health and safety of fast food restaurant employees through January 1, 2029. Local governments are not allowed to enact or enforce any laws setting wages and salaries for fast food restaurant employees during this time.