It is fairly common for sweeping employment law legislation to be introduced in the California legislature and I usually do not pay much attention to these bills because they usually do not become law.
One of two things almost always happens: (1) the republicans introduce a pro-employer bill that will never pass the democratically-controlled legislature [...]

Yesterday the California Supreme Court issued its decision in Gattuso v. Harte-Hanks Shoppers, Inc., ruling that employers may reimburse employee expenses in the form of “additional wages” payable in a “lump sum” instead of reimbursing each separate expense for the exact amount incurred.
This case deals with a scenario common to sales employees where the employer [...]

As explained in various posts on this blog, California employees are presumed to deserve overtime pay for any hours worked over 40 in one week or 8 in one day, even if they are paid a salary, unless the employer can prove that an exemption to that rule applies.
The “computer software professionals” exemption is rarely [...]

As the end of the year approached, Governor Schwarzenegger vetoed several employee protections the California legislature passed in 2007. While he felt it was important to give full protections to military spouses whose husbands or wives were on leave, he deemed other employees to be less deserving of similar rights.
This is the first in a [...]

Q: My employer pays me at one rate of pay for my regular work, but then pays me minimum wage for travel and attending seminars after-hours. How is my overtime supposed to be calculated?
–Bad at Math (CA)
A: Calculating overtime for an hourly employee who is paid at two separate hourly rates is [...]

Yesterday, it was reported that Wal-Mart had reached a settlement with the Department of Labor to settle unpaid overtime claims by its employees.
The odd thing about this settlement is that Wal-Mart turned itself in to the Department of Labor and negotiated a quick settlement with the government and the employees had no say in what [...]

Although this series on commissioned salespeople and overtime might not be the most exciting employment law topic, for those with large unpaid claims, it probably is the most exciting. I leave this topic with the following points.
Minimum Wage Test
The final test that must be met before commissioned salespeople can be considered “exempt” from overtime [...]

Even if you meet the criteria to be classified as “exempt” from overtime pay as a commissioned salesperson, the business your employer is engaged in can also automatically qualify you for overtime, regardless of how you are paid.
Commissioned salespeople can only be “exempt” if their employer is a “retail or service establishment”. Whether your [...]

In order for an employee to qualify as “exempt” from overtime pay as a commissioned salesperson, the main test that must be met is the employee MUST make more than 50% of their wages in the form of “commissions”. This test is not as straightforward as it might sound at first.
What are “commissions”?
Many employees [...]

This is the first in a series of posts dealing specifically with the issue of commissioned salespeople and unpaid overtime. This is an area most employees, many employers, and even a large percentage of California attorneys do not understand correctly.
Top salespeople often make a very comfortable living and never even think about whether they [...]

Employers and employees are often confused about how many hours an employee must work before overtime must be paid. California law is more complicated than most states on this point, but it is also much more generous to employees than most.
Employers must pay all non-exempt employees overtime at the rate of time-and-one-half for all [...]

Employers, either through ignorance or intentionally, often make big mistakes in calculating overtime rates of pay for their employees and these often turn into big claims by the employees for unpaid wages later on.
Overtime Rate NOT Just 1.5 Times Hourly Rate
To calculate an employee’s “overtime rate” of pay, you first have to calculate their “regular rate” of pay, [...]

Defense attorneys for large corporations in California have been trumpeting the case of In re Farmers Ins. Exch., 466 F.3d 853 (9th Cir. 2006) for the proposition that insurance claims adjusters are now exempt employees who are not entitled to overtime pay. However, this is not true when it comes to employees in California.
Case [...]

On January 1, 2007, California increased its minimum wage from $6.75 to $7.50 per hour.
Putting aside the fact that an extra 75 cents for each hour worked really has no effect on people’s lives (just $1,560 per year before taxes), there are some “side effects” of this increase employees should be aware of.
Background
Under California law, [...]

Q: I work from a home office in California, but my employer is based in Illinois. I have many business expenses I pay out of my own pocket but my employer refuses to reimburse me for them. Is this legal in California?
–Paying the Company’s Bills (CA)
A: In California, Labor Code § [...]

Q: I have worked for a company over 20 years and now I am retiring. I never took a vacation the last ten years I worked there. Each year I lost all of the vacation time I did not use. My son told me that is illegal in California. Is [...]

Q: My employer terminated me today (December 31, 2006). I was supposed to receive a $10,000 performance bonus for 2006, but one of the terms of my bonus agreement says that I have to be employed on January 1, 2007 to get my bonus. The company is not doing very well and [...]