Beginning March 1, 2021, the long-awaited revision of section 3(m) of the Fair Labor Standards Act (“FLSA”) regarding tipped employee regulations will go into effect. On December 22 2020, the U.S. Department of Labor (“DOL”) amended the rule to provide more clarity and flexibility to employers of tipped employees. Under this new rule, there are significant revisions to requirements for tip pooling arrangements and it further codifies the Department’s guidance regarding applications of the “tip credit” for tipped employees. These revisions will prevent employers from keeping tips received by their employees, regardless of whether the employer takes a tip credit. Furthermore, employers will be prohibited…Read More
Going into effect as of January 1, 2021, Governor Gavin Newsom signed an order expanding California’s California Family Rights Act (“CFRA”) and the New Parent Leave Act (NPLA) under Senate Bill 1383 (“SB 1383”). This new bill will protect millions of California residents who will now become eligible for leave under this law. Currently, CFRA allows employees have worked for a company for a minimum of 1,250 hours in the 12 months preceding their request for leave to take job-protected leave for the following reasons: Birth or adoption of a child To care for an immediate family member with a serious health condition The employee…Read More
Signed by Governor Gavin Newsom in September 2019, AB5 was scheduled to go into effect beginning January 1, 2020. California Legislation replaced the former Borello test that determined whether an individual should be classified as an employee or independent contractor with the “ABC” test decided in Dynamex. The “ABC” test considers the following: The person is free from the control and direction of the hiring entity in connection with the performance of the work, both under the contract for the performance of the work and in fact. The person performs work that is outside the usual course of the hiring entity’s business. The person is…Read More
