We have seen it way too many times. Personnel management without Labor Code-compliant policy poses a special kind of chaos, setting up the business for expensive and potentially back-breaking litigation.

There is freedom in simplicity: the clear written workplace guidelines presented in our newly updated model employee handbook and forms.

Combined with a company’s regular internal confirmations of standard, lawful personnel and pay practices, these materials are a powerful foot forward toward efficient and productive operations. See, We Offer an Ounce of Prevention, Make a Wage Audit a Priority (February 15, 2024).

Updated for 2024, our model forms include:

• Employment application and accompanying job description prototype (including key requirements for Americans with Disabilities Act compliance and California’s constitutional privacy protections);
• Pre-employment protocols (properly positioning the process to meet changing legal requirements);
• Employment agreement (including non-disclosure of private company data);
• Alternative dispute resolution agreement (also properly setting terms to match changing standards for private mediation and arbitration in lieu of court action);
• Meal and rest period acknowledgments (confirming employer provision of required breaks);
• Termination policy, checklist and standard release (to be applied as appropriate for full transition and greater protection against later, preventable suits);
• Paid sick leave benefits under federal and California directives; and
• Revised workforce COVID protocols.

Our comprehensive 80-plus page model employee handbook, 2024 edition, covers:

• Conditions of company employment (including mutual “at will” termination rights);
• Discrimination and harassment, prevention and handling (including pandemic-driven standards);
• Employee compensation;
• Employee benefits;
• Employee job performance;
• Limits of employee privacy (including valid management access to employee-maintained databases and social media guidelines);
• Paid and unpaid leaves;
• Workplace health and safety;
• Job-related injury or illness (including prevention plan priorities); and
• Drug and alcohol policy (including testing and violations procedures and standards).

CONTACT US TO ORDER NOWTo order or for more information, contact Office Manager Aimee Rosales at 626.583.6600 or email her at officemgr@tbowleslaw.com

March 15, 2024

Last year we wrote about new California Civil Rights Department (CRD) annual reporting requirements for larger employers, breaking down annual pay and hours-worked data by job category, sex, race, and ethnicity. See What’s New In 2023:Reporting Payroll Profiles: Deadline is May 10, 2023 (April 6, 2023). The next required report is due on May 8, 2024.

Businesses with 100 or more employees (defined to include labor contractors), with at least one in California, must file annually with the CRD in addition to any required “EEO-1” report with the federal Equal Employment Opportunity Commission. For each employee, the state’s report must include 2023 work location (including remote), job category, sex, race/ethnicity, pay and hours worked.

The CRD has good online resources, including links to forms, a reporting portal and more, as well as an FAQ page with considerable information on the requirements.

Employers should use the current form, not any old one, and file by the deadline. The CRD is going after companies that do not file. See, Civil Rights Department Secures Nearly $100K Settlement to Resolve Cambrian Homecare, Inc. Pay Data Lawsuit.

Take-Aways:

If a company employs 100 or more employees/labor contractors, even if only one is in California, it must file its payroll data report with the CRD by May 8, 2024.

For further information, please contact Tim Bowles, Cindy Bamforth or Helena Kobrin.

See also:

• 72 Million Reasons Not to Mess with Women, Employer Agrees to End Widespread Sex Discrimination (February 16, 2024)
• We Offer an Ounce of Prevention, Make a Wage Audit a Priority (February 15, 2024)
• New Year, New Leaf, Workplace Policy Handbook and Forms for 2024 (January 5, 2024)

Helena Kobrin
March 15, 2024

Businesses must protect their service and product brands from those who may seek, intentionally or unknowingly, to trade on the goodwill of those brands.

Choosing and registering a strong trademark is a powerful protective action. As a shield against unauthorized use, a registered mark is among the most valuable assets of an enterprise.

Not all chosen trademarks can be registered. Some marks are too generic or descriptive of products or services, diminishing the owner’s ability to prevent others from using them. A trademark attorney can help choose a mark the US Patent and Trademark Office (USPTO) is likely to accept for registration.

Once a business succeeds in registering a mark, it must maintain that mark with required filings every few years.

Our firm is available to aid in every aspect of this process.

Take-Aways:

Use a trademark attorney to choose, register and maintain a strong trademark with the proper, timely USPTO filings.

For further information, please contact Tim Bowles, Cindy Bamforth or Helena Kobrin.

See also:

• The Annals of Trademark Number 3: Selecting a Trademark Part 2 Distinctiveness (November 4, 2014)
• The Annals of Trademark Number 2: Selecting a Mark Part 1 (October 24, 2014)
• The Annals of Trademark Number 1: What is a Trademark? (October 16, 2014)

Helena Kobrin
March 8, 2024

California Penal Code section 487m criminalizes intentional Labor Code violations – such as failing to timely pay all required wages (e.g., minimum wage, overtime, premium pay for missed breaks), requiring off-the-clock work, or taking workers’ tips -- as felony grand theft if the underpaid wages exceed $950. For this section, “employee” includes an independent contractor and “employer” includes the hiring entity of an independent contractor. Conviction can result in a jail sentence of up to three years.

On February 16, 2024, the California Department of Industrial Relations (DIR) launched an $18 million Workers’ Rights Enforcement Grant Program (the Grant Program) for local prosecutors to aggressively pursue employers who violate labor laws.

Labor Commissioner Lilia Garcia-Brower stated: “We appreciate the legislature’s support in creating this funding source to incentivize the prosecution of wage theft. This is a serious and persistent problem, which demands increased collaboration with government agencies and community leaders. This grant program will help further our efforts to combat wage theft and unfair competition in the workplace. We look forward to working with local prosecutors in addressing these important issues.”

Take-Aways:

The Grant Program underscores the importance for all California employers to know and apply proper pay practices. Our firm can help with friendly, confidential wage audits, ranging from a small targeted sampling of pay records to extensive review of workplace wage-and-hour practices.

For further information, please contact Tim Bowles, Cindy Bamforth or Helena Kobrin.

See also:

• We Offer an Ounce of Prevention; Make Wage Audit a Priority (February 15, 2024)
• $5.5M To Settle Wage Theft Claim — Elderly Care Provider Fought Underpayment Citation for Five Years (January 5, 2024)
• PAGA Monster Grows More Legs – Best Protection Against Potentially Devastating Group Labor Claim is …Prevention (February 2, 2024)

Cindy Bamforth
March 8, 2024

We have completed this year’s “what’s new” employment law seminars, receiving the best possible reward: participating managers’ confirmed greater command of this mine-laden, but critical, field.

“Your all-day session gave me much more certainty as an office manager. Navigating California’s many employment laws, seemingly in a constant state of change, can seem overwhelming. No longer. Thank you, Tim, Cindy and team for making the subject much understandable, arming managers with the knowledge critical to secure and stable company expansion. This is a win-win for all!” ~BC

“I discovered much more than I thought possible. I always enjoy these seminars, each year coming out more educated on HR. Thank you. I will be implementing some changes right away.” ~ PM

“Great webinar. There is a lot of information for a new employer in California. The process is definitely more manageable. My only regret is not contacting you sooner. Thanks Aimee, Cindy and Tim for your help.” ~ AS

For questions and assistance on the 2024’s new laws or any other employment-related issue, contact Aimee Rosales, officemanager@tbowleslaw.com, 626.583.6600.

Tim, Cindy and team
March 1, 2024

As of February 3, 2025, California employers no longer have to maintain a COVID-19 model written program or provide written notice to close contacts and COVID cases.

COVID-related reporting and recordkeeping requirements, however, remain in effect until February 3, 2026, requiring California employers to:

• Keep records and log all COVID cases (i.e., employee name, contact information, occupation, worksite, last date at workplace, and date of positive test and/or diagnosis);
• Retain such records for at least two years; and
• Provide COVID case information to the appropriate authorities immediately upon request and when required by law.

As a reminder, California employers must always:

• Maintain a safe and healthy workplace;
• Implement and maintain an effective Injury and Illness Prevention Program (IIPP); and
• Identify, evaluate, and correct any unsafe or unhealthy COVID-related workplace situations if COVID is deemed a workplace hazard.

Take-Aways:

Employers should comply with the above; properly implement all appropriate safety and health precautions; and monitor Cal/OSHA’s website for any new updates.

For further information, please contact Tim Bowles, Cindy Bamforth or Helena Kobrin.

See also:

• Annual Virtual Seminar, Friday, February 28, 2025, Covering Employment Legal Essentials and New Workplace Laws (February 12, 2025)
• Workplace Basics – Employee Policy Handbook & Forms for 2025 (February 18, 2025)
• Not So Safeway? Cal/OSHA Cites Supermart for Serious Hazardous Conditions in Warehouse (February 14, 2025)

Cindy Bamforth
February 27, 2024

To address the shortage of health care workers, Senate Bill 525 (SB 525) created Labor Code sections 1182.14 and 1182.15. Effective June 1, 2024, the new laws provide substantial minimum wage increases for health care workers in facilities ranging from tiny residential care facilities for the elderly (RCFEs) to hospital systems with more than 10,000 workers. Eventually raising all non-exempt health care workers to $25/hour, the rate of increase varies depending on type and size of health care provider. The new laws supersede local minimum wage laws.

“Covered health care facility” includes not only employees of large acute care hospitals and facilities in integrated health care systems, licensed skilled nursing facilities, various kinds of clinics, including dialysis, specialty clinics affiliated with schools for teaching purposes, medical research and education facilities, and urgent care clinics, but also physician groups with 25 or more physicians, licensed RCFEs, licensed home health agencies, and even county correctional institutions and patients’ homes where health care services are delivered by entities owned by acute care or psychiatric hospitals.

Employees who provide patient care, health care services and health care supporting services, are covered. Supporting services include positions such as housekeeping, janitors, clerical and nonmanagerial administrative workers, guards, gift shop personnel, food service workers, groundskeepers, warehouse and laundry workers.

The new laws also cover contractor employees and subcontractors who perform or support health care services primarily on the premises of a health care facility.

Under section 1182.14, the pay categories and rates for covered facilities are quite detailed:

1. The default minimum wage for health care workers, unless otherwise specified in the statute is: $21/hour from June 1, 2024 to May 31, 2026; $23/hour from June 1, 2026 to May 31, 2028; and $25/hour as of June 1, 2028.

1. For large health care facility or integrated health care delivery systems, employers with 10,000 or more full-time equivalent employees, those in counties with 5 million or more population, and certain dialysis clinics and their owners and operators, wages increase to $23/hour on June 1, 2024; $24/hour on June 1, 2025, and $25/hour on June 1, 2026.

1. For hospitals and independent hospitals with a high or elevated governmental payor mix, e.g., Medicare and Medicaid, rural independent health care facilities, and health care facilities owned, operated or affiliated with counties with population under 250,000, the rate is $18/hour as of June 1, 2023, with annual 3.5% increases, and $25/hour as of June 1, 2033.

1. For health care workers at an integrated health care delivery system, certain licensed general acute care hospitals, or distinct sections of such hospitals, and special hospitals, as well as certain clinics, community clinics, rural health care clinics, and urgent care clinics, the rates are: $21/hour from June 1, 2024 to May 31, 2026; $22/hour from June 1, 2026 to May 31, 2027; and $25/hour as of June 1, 2027.

The law tasks the Department of Industrial Relations (DIR) with developing a waiver program by March 1, 2024. Under the program, a covered health care facility can apply for an alternate phase-in or temporary pause of the new wage requirements if it can show through documentary evidence that complying with the new wages “would raise doubts about [the facility’s] ability to continue as a going concern under generally accepted accounting principles.”

Section 1182.15 requires licensed skilled nursing facilities to increase health care worker wages to $21/hour n June 1, 2024, $23/hour on June 1, 2026, and $25/hour on June 1, 2028. However, section 1182.15 only goes into effect when a patient care minimum spending requirement applicable to skilled nursing facilities is required.

For salaried health care workers to be exempt from overtime, health care facilities must pay them a monthly salary equivalent to at least 200 percent of the state minimum wage or 150 percent of the health care worker minimum wage.

Take-Aways:

Employers in the health care industries need to ascertain whether they are covered by the new laws and plan how to comply starting June 1, 2024. Facilities seeking a waiver should watch for the DIR’s imminent issuance of FAQs and forms.

For further information, please contact Tim Bowles, Cindy Bamforth or Helena Kobrin.

See also:

• 5.5M To Settle Wage Theft Claim, Elderly Care Provider Fought Underpayment Citations for Five Years (January 5, 2024)
• California Minimum Wage Rates Increases (December 20, 2023)
• Physicians and Surgeons Overtime Exemption Rates (November 21, 2023)

Helena Kobrin
February 23, 2024

Activision Blizzard, Inc. and related companies were targeted in 2018 with joint investigations by the California Civil Rights Department and the Equal Employment Opportunity Commission.

The CRD’s resulting 2021 lawsuit claimed Activision’s systemic discrimination against women through unequal pay, constructive discharge, retaliation, promotions, instances of inappropriate or offensive conduct, and failing to prevent such sex-based inequality. The company has now entered a consent decree, subject to court approval, to settle the case for $54 million and other commitments including recruitment practices to include underrepresented groups and changes to hiring, compensation, promotion and other practices. See FAQ.

All Activision women employees from October 12, 2015 to December 3, 2020 will receive a standard minimum payment, and some, depending on longevity, will receive more.

Also in 2021, Activision entered a consent decree with the EEOC to settle federal court claims for sexual harassment, pregnancy discrimination, and related retaliation. The terms included $18 million compensation for women targeted, Activision’s correction of personnel records containing negative references and provision of future career opportunities and fair references.

Both consent decrees require the Activision companies to comply with applicable laws in their policies and practices, provide appropriate training, and handle complaints timely and effectively.
Take-Aways: Discrimination is a real issue. Employers must understand what constitutes illegal conduct and steer clear in all employment practices, including hiring, termination, promotion, pay, and overall treatment of employees. We offer Sexual Harassment Prevention Training seminars, virtual and in-person. Contact Aimee Rosales at officemanager@tbowles.com for more information.

For further information, please contact Tim Bowles, Cindy Bamforth or Helena Kobrin.

See also:

• Find Out What’s New In 2024: Last Chance Annual Seminar for Employers February 23, 2024 (February 7, 2024)
• Take Heed: Responding to Harassment and Discrimination Complaints Correctly (July 28, 2023)
• Tracking Down Discrimination: EEOC 2020 Report Retaliation, Disability Claims Predominate (April 16, 2021)

Helena Kobrin
February 16, 2024

California employers can be in for a rude awakening on discovery they are not fully compliant with the Labor Code. Devastating results can occur when not-so-friendly state or federal investigators come knocking.

Worse are the employee-driven wage and hour lawsuits that can force a business to shut its doors. See, PAGA Monster Grow More Legs – Best Protection Against Potentially Devastating Group Labor Claims is … Prevention (February 2, 2024). For even a handful of irregular meal break timekeeping records for 30 workers, averaging 1.5 violations per week for one year, one company recently faced $468,000 in penalties under California’s 2004 Private Attorneys General Act (PAGA).

Given the high stakes, best practices demand an internal proactive wage audit to locate and fix improper pay practices before any government agency or workers’ attorney points a finger in hostility.

Common topics:

• Independent contractor classification;
• Salaried worker classification;
• Pay periods and timing of payroll;
• Itemized wage statements;
• Timekeeping records, including rounding and accuracy of tracked time;
• Alternative workweek schedules;
• Compensation for minimum wage, overtime, reimbursed expenses, bonuses, commissions, piece rate, mileage, travel time, training time, mandatory meetings, sick pay, vacation or PTO pay;
• Meal and rest break practices;
• Fair Pay Act compensation for similar job duties;
• Interns and volunteers; and
• Remote worker compensation.

Utilizing qualified outside counsel:

• provides an objective perspective;
  
• brings a seasoned eye from having seen too many worst-case scenarios; and
  
• findings are confidential by the attorney-client relationship

Take-Aways:

Our firm is equipped to conduct friendly wage audits, ranging from a small targeted sampling of pay records to a thorough inspection of multiple wage-and-hour matters. E-letter subscribers will soon receive a link to register for a free 30-minute webinar next month to further explore the risks and options.

For further information, please contact Tim Bowles, Cindy Bamforth or Helena Kobrin.

See also:

• Friday, February 23, 2024 Annual Seminar for Employers Covering Employment Legal Essentials and New Workplace Laws (February 7, 2024)
• $5.5M To Settle Wage Theft Claim -- Elderly Care Provider Fought Underpayment Citation for Five Years (January 5, 2024)
• PAGA Monster Quelled … For Now – Appeals Court Overturns Wal- Mart’s $102 Million Penalty and Damages Judgment (July 2, 2021)

Cindy Bamforth
February 15, 2024