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Arizona owners of 18 California, Arizona, and Nevada McDonald's franchiseshave agreedwith the federalEqual Employment Opportunity Commission (EEOC)to pay $1,997,500 to settle a sexual harassment lawsuit.
Arizona owners of 18 California, Arizona, and Nevada McDonald's franchises have agreed with the federal Equal Employment Opportunity Commission (EEOC) to pay $1,997,500 to settle a sexual harassment lawsuit.
The suit accused AMTCR California, LLC, AMTCR Nevada, Inc., and AMTCR, Inc. (AMTCR) of taking no action to stop known sexual harassment by employees, including supervisors and managers, in its restaurants. AMTCR's young, teenaged employees were the principal targets not only of offensive comments, but also unwanted touching, sexual advances, and intimidation.
AMTCR has also agreed to stop such conduct in all its restaurants and implement extensive measures to prevent recurrences, including engaging an outside monitor to oversee AMTCR's handling of such complaints; taking surveys in the restaurants; updating its policies; staff training; and implementing a centralized tracking system.
EEOC Chairperson Charlotte A. Burrows stated: "Preventing and remedying systemic harassment and protecting vulnerable workers from discrimination are key priorities for the Commission. Teenage workers are especially vulnerable to harassment. The EEOC will continue to use all its tools--including outreach and education, technical assistance and, where necessary, litigation --to tackle workplace harassment."
Had AMTCR implemented measures to protect vulnerable employees and acted swiftly when sexual harassment occurred, it would have saved millions in fines and legal fees and avoided the bad publicity of an EEOC lawsuit. Most important, it would have protected numerous young employees from humiliating and offensive behavior.
TAKE-AWAYS: Employers have a legal and moral obligation to prevent sexual harassment and rapidly deal with it when it occurs. Sexual harassment training for managers and other employees is required in California and other places. Such training helps employees recognize and stop bad behavior in its tracks. Employers should provide such training and seek attorney assistance to ensure they have appropriate safeguards in place, including handbooks or other policies.
For further information, please contact Tim Bowles, Cindy Bamforth or Helena Kobrin.
See also:
Helena Kobrin
February 10, 2023
California is notorious for penalizing improper classification of employees as independents. Not to be outdone, the federal Department of Labor is also cracking down on employers who similarly miscast workers.
California is notorious for penalizing improper classification of employees as independents. Not to be outdone, the federal Department of Labor is also cracking down on employers who similarly miscast workers.
Case in point is the "consent judgment", i.e., court-filed settlement agreement, establishing that auto parts distributor Parts Authority Arizona LLC and joint employer Arizona Logistics Inc. misclassified 1,398 truck drivers as independent contractors with $2.8M back wages and another $2.8M in penalties now owing.
The misclassification resulted in not paying minimum wage or overtime and no reimbursement to drivers for use of personal vehicles, all in violation of the Fair Labor Standards Act.
Solicitor of Labor Seema Nanda stated: "The U.S. Department of Labor will combat misclassification schemes and wage theft through pursuing all the employers that are responsible for depriving employees of their rights under the Fair Labor Standards Act."
TAKE-AWAYS: Correct classification of workers is a crucial part of avoiding attacks from government agencies and workers themselves. Where truck drivers are concerned, there are also many other state and federal regulations and court decisions impacting pay, other employment requirements, and how to keep the drivers and our highways safe. Consulting with an experienced employment attorney can help employers avoid attacks.
Our attorneys Tim Bowles, Cindy Bamforth or Helena Kobrin can assist employers with proper classification of employees and other legal requirements.
See also:
Helena Kobrin
February 3, 2023
California and the federal government require employers to distribute or post numerous notices on workplace laws and complaint procedures.
California and the federal government require employers to distribute or post numerous notices on workplace laws and complaint procedures.
The following mandatory state and federal notices have been updated effective January 1, 2023:
Although California employers may email the required notices to remote workers, they must also physically display these posters in the workplace, including a remote workspace where an employee works 100% of the time.
Employers may purchase required notices from the California Chamber of Commerce. As these are subject to legislative or regulatory updates, please always confirm the use of the most recent versions.
We also provide a more comprehensive list of such state and federal forms, pamphlets, and notices as part of our California hire-to-fire employment forms package.
See also:
For assistance on such issues, please contact one of our attorneys Tim Bowles, Cindy Bamforth or Helena Kobrin.
Cindy Bamforth
February 3, 2023
Every two years, employers with five or more on payroll must provide at least two hours of classroom or other effective interactive sexual harassment prevention training and education to all California supervisory employees and at least one hour of such training to all nonsupervisory employees working on-site or remotely within California. New employees must complete this training within six months of hire.
Every two years, employers with five or more on payroll must provide at least two hours of classroom or other effective interactive sexual harassment prevention training and education to all California supervisory employees and at least one hour of such training to all nonsupervisory employees working on-site or remotely within California. New employees must complete this training within six months of hire.
The required instruction must include:
Based on seventeen years of classroom-style delivery, we offer live onsite or live webinar training.
In-person classroom-style or live interactive webinars are superior to point-and-click e-training for these reasons:
Feedback from a recent in-person seminar:
"This year, I decided to try your in-person anti-harassment training seminar instead of our usual online tutorial for each worker. Although the price difference was significant, the in-person seminar was SO MUCH MORE VALUABLE than I ever anticipated and worth every penny! The interaction with Cindy Bamforth allowed the staff to share important issues, encounters and experiences that I, as the employer, had no idea existed. We diverged from the outline to discuss important matters that are unique to my business. To cover those concerns as a group and with an attorney present made the seminar a tremendously valuable experience. See you in two years!" ~ TC
Contact us TODAY for more information, pricing or to schedule your workforce's seminar or webinar (626) 583-6600 or officemgr@tbowleslaw.com.
January 26, 2023
Many in the home care industry mistakenly pay hired caregivers as independent contractors.
Many in the home care industry mistakenly pay hired caregivers as independent contractors.
Case in point: the Labor Commissioner has cited two related agencies, Angel Connection Nursing Care and Angel Connection Nursing Services of Long Beach - and their owners individually - $1.8 million for misclassifying 66 employees as independents.
The state found the companies failed to pay minimum wage, failed to withhold payroll taxes and provide proper wage statements, and did not have workers' compensation coverage.
Triggered by reports from the Pilipino Workers Center and Bet Tzedek Legal Services, the Labor Commissioner assessed $213,163 unpaid minimum wages, $283,058 liquidated damages, $329,515 overtime, $14,123 contract wages, and $181,534 interest, totaling $1,021,393 due to workers. The citations added $330,000 penalties for misclassification, $171,000 for the unitemized wage statements, and $357,046 for violating a stop order for the lack of workers compensation.
The Commissioner found that Angel Connection "exercised control over the wages, hours and working conditions of the misclassified employees." Such control is a hallmark of employee - and not independent contractor - status.
Commissioner García-Brower stated: "When workers are misclassified as independent contractors, there is a damaging domino effect that impacts all levels of our economy. In this case, caretakers were systematically denied minimum wage, overtime, and other legally required working conditions."
TAKE-AWAYS: Independent contractor classification is unfounded where hiring agencies exercise control over the caregiver's hours and the work to be performed. The above assessment illustrates the vital importance of properly classifying such workers under state standards, preferably with assistance of knowledgeable employment counsel.
See also:
For assistance on such issues, please contact one of our attorneys Tim Bowles, Cindy Bamforth or Helena Kobrin.
Helena Kobrin
January 20, 2023
Buried among previous online guidances on theCalifornia Equal Pay Act, the Labor Commissioner has issuedFAQsto shed light on SB1162, California's new pay transparency (disclosure) law.
Buried among previous online guidances on the California Equal Pay Act, the Labor Commissioner has issued FAQs to shed light on SB 1162, California's new pay transparency (disclosure) law.
Effective January 1, 2023, SB 1162, requires employers to provide pay rate information to applicants and employees, include pay rate information in advertising if a company has more than 15 employees, and maintain records relating to pay rates. Companies with more than 100 employees also have to maintain certain statistics and related data concerning pay and racial, ethnic and sex categories. See What's New in 2023: Total Transparency: New Law Requires Pay Rate Disclosures (November 11, 2022).
The updated FAQs clarify:
Take-Aways: Employers should determine what portions of SB 1162 cover their operations and ensure they are complying with those requirements. Consulting with a knowledgeable employment attorney can assist in implementing these new laws.
For further information, please contact Tim Bowles, Cindy Bamforth or Helena Kobrin.
See also:
Helena Kobrin
January 13, 2023
Employers should provide employees with clear written instructions on how to report workplace-related difficulties, problems or confusions, such as regarding job performance, fair treatment under office policy, co-worker disputes, or any other work-related concern.
Employers should provide employees with clear written instructions on how to report workplace-related difficulties, problems or confusions, such as regarding job performance, fair treatment under office policy, co-worker disputes, or any other work-related concern.
Policy Drafting Tips:
Take-Away:
Implement and regularly review a comprehensive, clearly written handbook to include a reporting disputes and open-door policy.
We publish this series to educate employers on best practices for a well-written handbook that assists applicants, employees, and management alike. To purchase our template handbook - which contains the above policy and much more - and accompanying forms or for more information, please contact Office Manager Aimee Rosales at 626.583.6600 or email her at officemgr@tbowleslaw.com.
See also:
Cindy Bamforth
January 12, 2023
The Internal Revenue Service hasannouncedits 2023optional standard mileage reimbursementrate for employee business use of a personal vehicle, effective January 1, 2023, up from the mid-year increase of 62.5 to 65.5 cents/mile.
The Internal Revenue Service has announced its 2023 optional standard mileage reimbursement rate for employee business use of a personal vehicle, effective January 1, 2023, up from the mid-year increase of 62.5 to 65.5 cents/mile.
These rates apply to electric and hybrid-electric automobiles, as well as gasoline and diesel-powered vehicles.
These standard business mileage rates stem from annual government studies of fixed and variable automotive operating costs, including insurance, repairs, maintenance, gasoline and oil.
Under California Labor Code section 2802, employers must reimburse employees for all actual work-related expenses necessarily incurred.
Take-Away: Employers applying the IRS standard should reimburse work-related employee vehicle use at the new 65.5 cent/mile rate starting January 1, 2023.
For further information, please contact Tim Bowles, Cindy Bamforth or Helena Kobrin.
See also:
Cindy Bamforth
January 5, 2023
Without clear-cut guidelines even well-intended actions can result in harmful consequences.
Without clear-cut guidelines even well-intended actions can result in harmful consequences.
For example, enterprising employees might be tempted to respond directly to employee requests for recommendations and/or reference letters, which could create inconsistency. A well-written reference checks policy will typically instruct employees to refrain from responding directly and refer such requests to the human resources department or to another designated person for any response.
Employees might also be tempted to respond to media inquiries on the employer's behalf. A media contact policy would likely specify that only a designated company representative may respond to inquiring media on the company's behalf.
If the company has real or virtual bulletin boards, the handbook could include a provision specifying that the employer has reserved these boards for the posting of legal notices and other official company business and that any posting must be approved in advance by human resources or senior management.
Take-Away:
Implement and regularly review a comprehensive, clearly written handbook to include such policies.
We publish this series to educate employers on best practices for a well-written handbook that assists applicants, employees, and management alike. To purchase our template handbook - which contains the above policies and much more - and accompanying forms or for more information, please contact Office Manager Aimee Rosales at 626.583.6600 or email her at officemgr@tbowleslaw.com.
See also:
Cindy Bamforth
December 23, 2022