Is “Fair Pay to Play” Fair in College Sports? What California’s New Law Means for the Future of Amateur Athletics

On September 30, 2019, Governor Gavin Newsom signed California legislation—Senate Bill (SB) 206—that would permit college student athletes to benefit financially (for example, from endorsement deals) from their names, images, and likenesses while still in school. Governor Newsom signed the Fair Pay to Play Act, which Senator Nancy Skinner (D-Berkeley) and Senator Steven Bradford (D-Gardena) sponsored, with much fanfare, alongside a high-profile professional basketball player and several former college student athletes. The new law is scheduled to take effect in January 2023.

False Alarm? The Practical Impact of AB 51, California’s New Anti-Arbitration Statute

On October 10, 2019, California Governor Gavin Newsom signed into law a state statute purporting to prohibit employers from requiring employees to enter into certain types of arbitration agreements. This new law is creating significant uncertainty and anxiety among employers. What is the practical impact of AB 51 in light of its possible preemption by the Federal Arbitration Act (FAA) and other potential challenges to its limits on arbitration?

California Court of Appeal Clarifies Meal and Rest Period Premium Calculation and the Enforceability of Rounding Policies

California employers have long grappled with two wage and hour questions:

  1. What rate of pay should be used to calculate meal and rest period premiums in California?
  2. Does the facially neutral “rounding” of employee work time, which results in a small subset of employees being undercompensated, result in systematic undercompensation on a class-wide basis?

Answers to 10 Questions About California’s Ban on Mandatory Arbitration of Statutory Employment Claims

California is set to become the only state to outlaw predispute mandatory arbitration of statutory employment claims. On October 10, 2019, Governor Gavin Newsom signed California Assembly Bill (AB) 51, which prohibits employers from requiring employees to arbitrate claims arising under the California Fair Employment and Housing Act (FEHA) and related employment statutes.

California Prohibits Most “No Rehire” Provisions in Settlement Agreements

Employment litigation settlement agreements often include a mutually negotiated “no-rehire” provision by which the departing employee agrees not to seek employment with the company in the future. A recently enacted California law will require companies to refrain from including such provisions in most instances.

The Latest on California’s Approach to Biometrics in the Workplace

Although California does not have a specific biometric privacy law like Illinois’s 2008 Biometric Information Privacy Act (BIPA) or its recently enacted 2019 Artificial Intelligence Video Interview Act (AIVIA), stay tuned for the impact of the California Consumer Privacy Act (CCPA), which goes into effect on January 1, 2020.  The CCPA will directly affect how certain employers use biometric data in the workplace.

California Promotes AI in Hiring and Employment

Legislatures across the country are racing to keep up with the ever-expanding uses of artificial intelligence (AI) in the workplace. While to date much of the focus has been on ethical uses of AI, disclosures requirements, and informed consent (e.g., the Illinois 2019 Artificial Intelligence Video Interview Act), the California legislature recently took the bold move of promoting AI as a tool to reduce bias and discrimination in hiring and employment.

California’s New Hairstyle Antidiscrimination Law May Signal the Beginning of a National Trend

Signaling a growing movement to align culturally inclusive practices with legal protections, California has become the first state to expressly ban discrimination based on hairstyle and hair texture associated with a person’s race. On July 3, 2019, Governor Gavin Newsome signed into law Senate Bill No. 188, the Create a Respectful and Open Workplace for Natural Hair Act (CROWN Act).

California Pay Equity Data Collection Legislation Closer to Passing

Currently, certain employers are required under federal law to file annual Employer Information Reports (EEO-1) with the Equal Employment Opportunity Commission. These EEO-1s must contain data regarding demographics of the employer’s workforce. Accordingly, employers covered by federal EEO-1 reporting requirements were required to file EEO-1 Component 1 data from 2018 by May 31, 2019, and must still submit Component 2 EEO-1 (pay and hours worked) data for their workforces by September 30, 2019. Not to be outdone, the State of California is poised to impose a similar requirement on employers.

California’s Paid Family Leave Program to Expand from 6 to 8 Weeks

California is expanding state benefits available to workers who lose wages while taking time off to care for a seriously ill family member or to bond with a new child. On June 27, 2019, Governor Gavin Newsom signed California’s 2019-20 state budget, which included an expansion of the state’s family temporary disability insurance program administered through the Employment Development Department (EDD). The benefit program is commonly referred to as “paid family leave” or PFL.

California Court Delivers Trucking Company a Meal/Rest Break Win and Limits the Application of the ABC Test

The U.S. District Court for the Eastern District of California recently ruled in an employment class action regarding misclassification of trucking industry owner-operators as independent contractors. The ruling is a win for numerous industries.

Don’t Slip Up: When Are California Employers Required to Pay for Employees’ Shoes?

A hot-button issue in California is whether an employer is required to pay for or reimburse an employee for shoes that are required as a condition of employment. A recent ruling by the California Court of Appeal highlights the complexity of the issue and lack of concrete guidance on a critical question: whether California workplace safety law requires an employer to pay for nonspecialty safety shoes, such as generic steel-toe boots, that the employer allows the employee to wear off the jobsite.

Bill to Exclude California Employees from CCPA Passes Senate Committee With Changes

On July 9, 2019, the California Senate Judiciary Committee passed Assembly Bill 25 (AB 25), but only after certain changes were made to quell opposition to the bill by labor groups. The bill  was originally drafted to exclude employees and job applicants from the definition of “consumer” under the California Consumer Privacy Act of 2018 (CCPA).

Offshore Oil Rig Workers’ Overtime Claims Governed by FLSA, Not California Law

On June 10, 2019, the Supreme Court of the United States unanimously ruled that state wage and hour laws do not apply to offshore drilling workers where federal law addresses the relevant issue. In Parker Drilling Management Services v. Newton, No. 18-389, the Supreme Court answered the question of whether California’s laws governing the minimum wage and payment for “standby time” applied to workers on oil rigs in federal waters off the coast of California.

Keeping an Eye on Artificial Intelligence Regulation and Legislation

More and more organizations are beginning to use or expand their use of artificial intelligence (AI) tools and services in the workplace. Despite AI’s proven potential for enhancing efficiency and decision-making, it has raised a host of issues in the workplace which, in turn, have prompted an array of federal and state regulatory efforts that are likely to increase in the near future.

A Dozen Major Employment Law Bills Wind Through the California Legislature

The California State Senate and Assembly have been busy this year, moving a number of employment law bills through the legislative process. May 31, 2019, was the deadline for either the assembly or the senate to pass a bill and send it to the other house. A few employment-related bills failed to advance, but there are still a dozen major bills marching forward.

Draft California Regulations for Nighttime Agricultural Operations Up for Vote at Standards Board

On April 18, 2019, the California Occupational Safety and Health Standards Board will consider an update to the regulations governing nighttime agriculture operations at its monthly meeting. In 2013, the Division of Occupational Safety and Health (or Cal/OSHA) asked for a revised regulation because of prior accidents or fatalities that occurred during the darkness of nighttime agriculture operations.

Federal Court Finds California’s New ABC Test Is Not Preempted, Applies to Trucking Industry

As California employers wait to see how the California legislature votes on independent contractor bills after the new ABC test was announced by the California Supreme Court last year, a recent federal case out of the U.S. District Court for the Eastern District of California has received some attention in the transportation industry.