On April 27, 2021, President Joe Biden signed an Executive Order (EO) requiring certain federal contractors to pay workers on government contracts at least $15 per hour beginning January 30, 2022. After 2022, the minimum wage will be adjusted annually for inflation at a rate set by the secretary of Labor (the secretary). The EO supported the minimum wage increase by stating that raising worker wages will promote efficiency in federal procurement through: (1) enhanced worker productivity and generation of higher-quality work from increased workers’ health, morale and effort; (2) reduced absenteeism and turnover; and (3) lowered supervisory and training costs.
Among the lasting 2020 impacts of fires, politics and COVID-19, is increased regulation of California employers. More than 563 bills introduced in the last California legislative session mention “employer,” compared to about 300 bills in 2019. While most bills stalled in the Legislature, many were signed into law by Gov. Gavin Newsom, bringing more rules and risks for employers in our state, dealing with workplace safety; sick leave; workers’ compensation; diversity and discrimination; worker classification and wages; privacy; employee leaves; and settlements.
Several new laws in California impact employers in a multitude of operational areas. From leave regulations to workers’ compensation, safety enforcement, wages and more, business leaders have much to research when it comes to compliance. All employers with operations in California should be aware of these new laws, understand how these laws may affect their operations and consult with counsel to address any questions on these new obligations.
On August 19, the Ninth Circuit delivered the latest guidance in the long-running debate over the Federal Arbitration Act’s (FAA) scope. It held that Amazon delivery drivers can move forward with a nationwide class action — in court, not arbitration — because they fall within the FAA’s transportation worker exemption.
The case, Bernadean Rittmann v. Amazon.com, Inc., et al, Case No. 19-35381, dealt with a “last mile” delivery driver through Amazon’s app-based delivery program, Amazon Flex (AmFlex), who occasionally crossed state lines, but completed most deliveries intrastate. Upon starting work, the driver signed an agreement requiring him to bring claims against Amazon in arbitration.
The Fair Labor Standards Act (FLSA) and state wage and hour laws require businesses to record and pay their nonexempt employees for all “compensable time,” including certain activities that occur before an employee begins his or her principal activities during the work day. During the COVID-19 pandemic and after retail employees “return to work,” workers may be required (or choose) to engage in certain tasks at the start of their shifts and throughout the workday.
For the full alert, visit the Faegre Drinker website.
Employees must be paid for time spent waiting for, and undergoing, searches of their bags, packages and personal technology devices, the California Supreme Court ruled February 13, 2020, in Amanda Frlekin, et al. v Apple, Inc., Case No. S243805, answering a question posed to it by the U.S. Court of Appeals for the Ninth Circuit in a case involving Apple. This decision marks a signature departure from the federal Fair Labor Standards Act of 1938, under which time spent undergoing mandatory security screenings is not compensable, the U.S. Supreme Court previously held in Integrity Staffing Solutions, Inc. v. Busk, 574 U.S. 27 (2014). This is yet another example of the greater protection that California state laws typically offer employees.