Do you have Independent Contractors providing services to your business? If you do, be aware that California has strict standards to determine who is truly an Independent Contractor, versus who is actually an employee being intentionally misclassified as an independent contractor.
Sometimes an employer is approached by an employee with a special request, such as paying the employee “under the table,” or underreporting the employee’s hours to payroll, so the employee doesn’t lose certain government benefits such as low-income housing assistance. This proposition may be tempting for the employer, as it would allow the employee to take home more money and allow the employer to avoid paying payroll taxes, workers’ compensation insurance, and other State-mandated employer payments. However, this route can be extremely costly for an employer whose actions are discovered by the State.
Employers: if your standard employment contract includes a mandatory arbitration clause, please be aware that there are limits on what issues and claims you can force into arbitration.
In a recent California Appellate Court case, an employer included a mandatory arbitration clause in its employment contract. [Read more…]
A Federal Appellate Court in California recently asked certified questions to the California Supreme Court in order to clarify California laws governing the number of days an employee may work. The California Labor Code states that “[e]very person employed in any occupation of labor is entitled to one day’s rest therefrom in seven,” and prohibits an employer from causing an employee to work “more than six days in seven.” Employers are exempt from providing a day of rest “when the total hours of employment do not exceed 30 hours in any week or six hours in any one day thereof.”
California’s Paid Sick Leave Law Took Effect on July 1, 2015 for Your Business
Under California’s Paid Sick Leave law, all California employers, regardless of size, were required to provide Paid Sick Leave to their employees beginning July 1, 2015. This law applies to almost every type of employee, including temporary, part-time, and seasonal.