Labor & Employment Law Blog

1. Summary of the Ruling

In Gonzalez v. Nowhere Beverly Hills LLC, 2024 WL 4948533 (Dec. 3, 2024), the California Court of Appeal for the Second District held that plaintiff-employees cannot simultaneously allege their employers’ corporate subsidiaries and parent companies acted as “joint employers,” while also attempting to avoid arbitration with these related entities by arguing they were not parties to the employment contract and arbitration agreement.

In the recently decided Howell v. State Department of State Hospitals, 2024 WL 4997719 (December 5, 2024), the trial court and court of appeal upheld a Scrooge-like verdict by a jury that resulted in Ms. Howell’s receiving NO emotional distress damages and limited attorneys’ fees even though the jury found she had been discriminated against based on a mental disability.  A closer examination of why Ms. Howell found a lump of coal in her holiday stocking is merited.

On August 1, 2024, California’s Director of Finance certified that the Golden State’s minimum wage for all employers will increase to $16.50 per hour, effective on January 1, 2025. 

Effective October 10, 2024, San Diego County adopted its new Fair Chance Ordinance (“SDFCO”). The SDFCO imposes additional restrictions that covered employers must follow regarding the use of criminal history in employment, on top of what California law already requires. 

The new SDFCO applies to employers that do business in the unincorporated areas of the County of San Diego and have 5 or more employees. Applicants and current employees who are in or are seeking a position involving at least 2 hours of work, including remote work, on average each week in the unincorporated areas of the County, receive protections under the SDFCO. Unlike the California state Fair Chance Act (“FCO”), the SDFCO expressly defines an “applicant” to include those applying for employment but also current employees seeking promotions or transfers.

Back in February, 2024, the Los Angeles County Fair Chance Ordinance for Employers (the “FCO”) was adopted by the County Board of Supervisors. The FCO became operative and subject to enforcement on September 3, 2024 and adds a variety of additional compliance obligations for covered employers and added protections for covered applicants and employees, above and beyond what existing state law requires. Covered employers must ensure that they comply with the stricter of state and local laws governing the use of criminal history in employment.

With the close of the California legislative season, there are a variety of employment law bills which will become law on January 1, 2025. Golden State employers should be aware that several of these new laws necessitate updates to employment policies and handbooks. Specifically:

California health care employers will recall that Governor Newsom signed SB 525 into law in October 2023, setting into motion planned increases to the required minimum wage for certain health care employees who work at covered health care facilities. SB 525 required increases to the health care minimum wage to begin in June 2024, but the law’s start date became a matter of confusion and chaos, with the State first delaying SB 525’s start date to July 1, 2024 based upon budgetary concerns, only to then delay it again until at least October 15, 2024.

On January 1, 2024, California’s statewide minimum wage rate increased to $16 per hour. Alongside this hike to the minimum wage, the base salary requirement for California employees exempt under the administrative, professional, and executive exemptions increased to an annualized salary of $66,560.

The local minimum wage will increase on July 1, 2024 in the following locations in California:

Lately, Deputy Labor Commissioners have been making unannounced visits to fast food stores in Los Angeles County to conduct audits. They arrive, sometimes alone, and sometimes in pairs, and ask for the manager.  The Deputy Labor Commissioners insist on conducting the audit while they are on the premises, and they have not been amenable to requests to come back on a date and time that is more convenient.  Below, please find useful information about the types of information that will be sought by the Deputy Labor Commissioners if you are subject to such an audit.