Legal Update
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Important Decision for California Employers Impacting Mandatory Arbitration Agreements
By SHLC on February 16, 202300On February 15, 2023, a divided US Court of Appeals for the Ninth Circuit panel held that the Federal Arbitration Act (“FAA”) preempts California’s Assembly Bill 51 (“AB 51”), a 2019 measure that prohibited employers from requiring job applicants or workers to sign arbitration pacts. The 9th Circuit’s ruling means that it is lawful for most employers to require employees […] -
IMPORTANT NEW DEVELOPMENTS FOR CALIFORNIA WORKPLACE ARBITRATION AGREEMENTS
There are three major recent developments that affect California workplace arbitration agreements. The first is the “Ending Forced Arbitration of Sexual Assault and Sexual Harassment Act of 2021,” a federal law which prohibits employers from enforcing pre-dispute agreements that require arbitration of sexual assault and harassment claims. The second development is the U.S. Supreme Court’s June 15, 2022 decision in […] -
Naranjo v. Spectrum Security Services, Inc.: California Supreme Court Raises the Stakes for Meal and Rest Period Compliance
On May 23, 2022, after a nearly two-and-a-half year wait, the California Supreme Court issued its decision in the case of Naranjo v. Spectrum Security Services, Inc. The decision answers a very important question for California employers: May a California employee pursue so-called “paystub penalties” and “waiting time penalties” due to a failure to pay or report meal and/or rest […] -
Federal Ban on Pre-Dispute Arbitration Agreements Covering Sexual Assault or Sexual Harassment Claims Signed by President Biden
On March 3, 2022, President Biden signed H.R. 4445, known as the “Ending Forced Arbitration of Sexual Assault and Sexual Harassment Act of 2021.” H.R. 4445 amends the Federal Arbitration Act to bar pre-dispute arbitration agreements of claims alleging sexual assault or sexual harassment, and includes a bar against any waivers of the right to bring such claims jointly and/or […] -
California COVID-19 Supplemental Paid Sick Leave is Back in 2022 with Different Provisions
On February 9, 2022, Governor Newsom signed SB 114 into law, which requires California employers with 26 or more employees to provide up to 80 hours of supplemental paid sick leave for qualifying COVID-19-related reasons (“2022 SPSL”). The obligation to provide the new paid sick leave begins on February 19, 2022. As before, employers must also provide retroactive pay from January […] -
Recent Nevada Law Places New Restrictions on Non-Compete Agreements
On October 1, 2021, new provisions took effect within NRS 613.195, Nevada’s primary statute governing the enforceability of employee covenants not to compete. The new provisions—that result from the passage of Assembly Bill 47—have changed the legal landscape with respect to non-compete agreements, and have left many employers wondering whether they can continue to use and enforce these agreements with […] -
California Requires Employers to Provide 12 Weeks of Job Protected Leave to Care for a Parent-in-Law
On September 27, 2021, Governor Newsom signed AB 1033 into law to include leave to care for a parent-in-law within the definition of family care and medical leave. Last year, SB 1383 amended and expanded the California Family Rights Act (“CFRA”) to apply to small California businesses. For more information, read our blog on SB 1383 here and listen to […] -
Ninth Circuit Removes Preliminary Injunction, Mostly Upholds California Law Prohibiting Mandatory Employment Arbitration Agreements
On September 15, 2021, in the case of Chamber of Commerce of the U.S., et al. v. Bonta, et al., No. 20-15291 (9th Cir. Sept. 15, 2021) (read the decision here), the U.S. Court of Appeals for the Ninth Circuit issued a decision regarding the future of California’s AB 51, which regulates employer use of mandatory arbitration agreements. The Ninth […] -
California Supreme Court Rules the Regular Rate of Pay is Proper Method for Calculating Premium Pay for Rest, Recovery and Meal Periods
On June 15, 2021, in Ferra v. Loews Hollywood Hotel, LLC, the California Supreme Court held that the term “regular rate of compensation” means the same as the “regular rate of pay” and not the employee’s base hourly rate. This holding is important for California employers because it means that premiums for non-compliant rest, recovery and meal periods must be […] -
CALIFORNIA ADOPTS EXTENDED COVID-19 SUPPLEMENTAL PAID SICK LEAVE REQUIREMENTS FOR EMPLOYERS – OBLIGATION TO PROVIDE LEAVE BEGINS MARCH 29, 2021
On March 19, 2021, Governor Newsom signed SB 95, which requires California employers with 25 or more employees to provide additional supplemental paid sick leave for COVID-19 related reasons to their California workers. The obligation to provide the new paid leave begins on March 29, 2021, but requires retroactive pay back to January 1, 2021 to employees who took leave […]