wage and hour lawsuit

Employees Win in California Supreme Court Wage and Hour Ruling

March 14, 2018 | by Nassiri Law

Employees got a big win in California Supreme Court recently in a case that ruled on interpretation of guidelines regarding overtime wages. The case in particular examined what formula should be used to calculate overtime wages and whether companies should follow Division of Labor Standards Enforcement rules or federal standards. Plaintiff said company was undercutting his pay by using the federal formula rather than following California rules, which give more favor to employees. And the high court, thankfully, agreed.

Overtime rate of pay is usually calculated using a formula of 1.5 times the regular pay rate. If an employee makes an hourly wage and nothing else, the calculation is easy. For example. someone who earns $12 per hour would receive $18 per hour once they rolled into overtime hours. But there are different interpretations as to what the calculation would be when an employee has additional income that needs to be included, such as a flat sum bonus, according to a Bloomerg report. That’s the crux of the case at hand.

Defendant in this case was a manufacturing company that paid workers an extra $15 bonus for each Saturday or Sunday they worked. The bonus was the same regardless of how many hours were worked on that shift. Defendant was using the federal formula for calculating the overtime rate of pay, which adds up all income earned and divides by all hours worked, including the overtime hours. A lower appeals court sided with the company, sending the case up to the state Supreme Court.

GrubHub Ruling Will Drive Future of Gig Economy

February 18, 2018 | by Nassiri Law

With the fast-paced growth of the gig economy, the line between independent contractors and employees has become more and more blurred. This has led to employee misclassification lawsuits filed by workers, claiming employers have taken advantage of their independent contractor status.

Those lawsuits could have a more clear outcome after U.S. District Court for the California Northern District filed a decision in a lawsuit against GrubHub Inc., according to Los Angeles Times. U.S. Magistrate Judge Jacqueline Scott Corley Judge ruled GrubHub’s drivers are independent contractors and should not be classified as employees, and therefore will not receive the perks that come with that identifier.

Maintaining a workforce primarily made up of independent contractors is at the heart of the gig economy. Services like Uber, Lyft, Grub, Postmates, and others will often identify their companies as services that connect customers with contractors, rather than the providers of those services. That way they can work around supporting a staff of employees, and reap the benefits of massive cost reductions. Meanwhile, drivers and delivery people are beholden to the companies they contract for while being burdened with costs associated with the work they do without reimbursement. Continue Reading ›

Tipped Employees Might Have to Share Tips Under Proposed Rule

February 15, 2018 | by Nassiri Law

Anyone who has ever waited tables knows how valuable a good tip is. It brings the wages of tipped employees up, makes it possible for restaurant owners to keep food prices reasonable, and gives workers an incentive to work during extra busy and stressful shifts throughout the week.

U.S. Department of Labor defines tipped employees as those who regularly receive more than $30 a month in tips. Such employees, depending on the state, can be paid a minimum of $2.13 per hour, as opposed to the traditional federal minimum wage of $7.25. The tips that are used to bring tipped employees up to minimum wage are known as a tip credit. If the employee does not make enough in tips to meet the federal minimum wage standard, the employer must make up the difference, according to 29 U.S. Code § 203 (m).

California, however, is a bit different in that the state requires employers to pay full minimum wage before tips. The state’s minimum wage is also higher than national, ranging from $10.50 (for employers with fewer than 26 employees) to $11 (26 or more employees). Continue Reading ›

Abercrombie Workers Win Wage Settlement

February 13, 2018 | by Nassiri Law

According to a report last year by CareerBuilder, research conducted on behalf of the site shows 78 percent of American workers live paycheck-to-paycheck. The number breaks down further: 38 percent responded they sometimes live paycheck-to-paycheck, 17 percent said usually and 23 percent answered always. The overall percentage goes up for women (81 percent).

CareerBuilder’s chief human resources officer described these employee financial struggles as a problem for employers, citing that stressed out workers are less focused and less productive. Still, while a happy workforce can help financial standing long term, many employers can’t help but focus on immediate gains made by keeping wages as low as possible. Others may go as far as to dig into those already low wages even further to pad out their bottom line by making employees cover expenses related to the job.

This is what about 250,000 former and current employees of Abercrombie & Fitch, Hollister, and other affiliated stores are claiming happened to them, as far back as 2009, according to a report from The Columbus Dispatch. Workers alleged they were forced to buy and wear clothing from their stores on the job, though the company denies these claims. Continue Reading ›

State of California Sues Janitorial Company for Wage Theft

December 21, 2017 | by Nassiri Law

A janitorial company in Anaheim is being sued by the state of California for allegedly paying some 150 works just $400 monthly in wages over the past four years. As the Orange County Register reports, that is far below the minimum wage, which is why California Attorney General Xavier Becerra reports the firm has become a top priority for his office.

The janitorial firm reportedly serves an estimated 80 major retailers throughout Southern California, including Toys R Us, Burlington Coat Factory and JoAnne’s Fabrics. These retailers, however, are not accused of any wrongdoing because they contract the work to a Pennsylvania-based firm that specializes in subcontracting such services. As our employment law attorneys can explain, this kind of subcontracting arrangement is typical in the retail sector as well as others, as it shields them from wage-and-hour lawsuits. Wage theft and other claims are common in these industries, and affected workers range from janitors (as in this case) to garment workers.

But while the retailers did not directly employ the workers, Becerra was quoted by the Register as saying he hopes the lawsuit puts large retailers and other firms on notice about such practices. Even if workers aren’t getting a paycheck from the retailer, they are still working within their facilities and in furtherance of their business, and that may be grounds to establish some level of responsibility. Continue Reading ›

Making a Wage/Hour Claim in Los Angeles

December 6, 2017 | by Nassiri Law

Wage and hour disputes in Los Angeles are an increasingly common complaint. Employers sometimes cut corners to avoid paying workers the full amount. In some instances, workers are mis-classified as independent contractors rather than employees, depriving them of receipt of important benefits, such as workers’ compensation and overtime pay.

This is increasingly becoming problematic in this digital age, as a recent case out of Northern California highlights. The San Francisco Chronicle reports an employee of a major online retailer is claiming the employer is not giving breaks and not paying overtime at his employment location.

Of course, it is possible for employers to make an honest clerical error and short a paycheck merely by accident. However, even then, the employee should be able to point out the mistake and get the issue resolved fairly quickly. If the employer is not willing to promptly correct the payroll issue, this is a good sign there may be bigger problems at hand. Continue Reading ›

Southern California Job Growth Projected to Slow Over Next Three Years

November 1, 2017 | by Nassiri Law

Recent projections by economists indicate that the job growth currently enjoyed in Southern California will slow dramatically in the coming years. This is problematic for employees, who are already at a disadvantage in negotiating the employment relationship. Employers, who traditionally hold a stronger bargaining position, are further strengthened in a job market which favors employers. Nonetheless, employees still have workplace rights which must be protected. Learn more about how a Southern California employment lawyer can protect employees’ rights in a tough job market.

The Job Projections

The Orange County Register reports that economists from California State University at Fullerton have recently released projections for job growth across Southern California during the next three years. While 2016 saw an expansion of 2.6 percent in payroll jobs, 2017 is projected to see only 1.6 percent, and 2018 growth is estimated at 1.7 percent. 2019 payroll jobs are estimated to grow at only 1.9 percent. While these percentages may seem small, they represent thousands of jobs, and thousands of families which depend on the income from those jobs. The economists found no obvious trigger for the current drop in employment.

Employment Classification Issues in Los Angeles

October 31, 2017 | by Nassiri Law

Employee misclassification is a major violation of California labor law that happens far to often. The issue is whether a worker is an actual employee or an independent contractor. An employee works for an employer and is under the direct supervision of the employer, manager, or supervisor.

Employees are told how to do the job, and most if not all aspects of the job performance are governed by the employer. The employee also is entitled to benefits including health care and, if they work more than 40 hours in a pay week, are entitled to overtime assuming they are paid by the hour as opposed to being on salary. Continue Reading ›

Bay Area STEM Jobs Outpace Available Workers

October 28, 2017 | by Nassiri Law

A new report finds that the number of science, technology, engineering and mathematics jobs available in the Bay Area will soon vastly outpace the number of skilled workers who are available to fill such jobs. On the surface, this appears to be good news for STEM workers, who will soon have a wider range of job opportunities available to them. However: such market conditions can also place greater pressure on employees once they have been hired, and increase the potential for wage and hour disputes. These conditions can also increase the potential for workers to be misclassified as independent contractors. Learn more about the projections for the STEM market, and how a California employment attorney can help STEM employees negotiate the working conditions to which they are legally entitled.

The Projections

The San Francisco Business Times examined the future of California’s STEM job market by analyzing a series of statistics. In May 2015, the California Employment Development Department reported that there were twice as many online job postings for STEM jobs as the number of unemployed STEM workers. This current scenario is likely to be exacerbated in the coming years by a series of factors. First, California is projected to add about 200,000 STEM jobs over the next five years, according to the Bureau of Labor Statistics and reports issued by the State of California. Next, many STEM employees will soon age out of the job market. Over half of California’s STEM employees face retirement in the next five to ten years. Finally, STEM jobs require advanced degrees that greatly narrow the field of suitable applicants. For reference: 33% of the working population in California holds college degrees, but 75% of STEM jobs will require a bachelor’s degree or higher. Continue Reading ›

California Law Protects Employees’ Rights to Take Time Off in Special Circumstances

October 7, 2017 | by Nassiri Law

California has long been a pioneer of worker’s rights, and state law protects workers from many types of discrimination beyond those prohibited by federal law (such as religion and gender). The California Labor Code also lists many situations in which an employee is entitled to take time off work without being terminated or retaliated against. Many employees may not know that victims of domestic violence and sexual assault have employment rights under California. Now, a new law expands the duty of employers to advise employees of these rights. Continue Reading ›