SAN FRANCISCO EMPLOYMENT LAW BLOG

Fair wages and proper compensation is what many people work for. Often, they must work long, hard hours in order to provide for their families and meet other needs, so whenever something seems off with their pay, it can be concerning. Unfortunately, some employers do not properly pay their workers, and it is often up to the employees to pursue their rightful compensation through wage and hour claims.

Taking legal action can seem intimidating, but it is often necessary when mistreatment and violations of the law have occurred. California readers may be interested in one out-of-state woman who chose to follow this course of action after not receiving her proper pay. The woman was a nail technician at a beauty salon where she claims she was required to clean bathrooms and arrive to work early without being paid for those actions.

The class action lawsuit also states that the workers were not properly paid for the hours they spent on their regular work duties. Legal representation for the woman went as far as to say that the employers picked which hours they felt like paying their workers. The owners of the salon stated that they were unaware of these allegations until the lawsuit, and they do not believe any wrongdoing took place.

People do not have to stand by and have their rights violated by employers. If California workers believe that they have not been appropriately compensated for their hours worked, they may want to gain more information on wage and hour claims. Speaking with knowledgeable attorneys could help interested parties gain thorough evaluations of their cases.

Source: CBS Denver, “Nail Tech Files Class Action Lawsuit Against Ella Bliss Beauty Bar“, Joel Hillan, May 17, 2018

The California Supreme Court adopted a new legal standard that will make it more difficult for businesses to misclassify workers as independent contractors. This will directly affect the trucking and transportation industry as well as the gig economy (e.g., Uber, Grubhub, Bellhops, Caviar, Dolly, DoorDash).

Specifically, the Court adopted a new standard for determining whether a company “employs” or is the “employer” for purposes of California law.

Under the new “ABC” test, a worker is considered an employee unless the hiring entity establishes all three of these prongs:

1. the worker is free from the control and direction of the hirer in connection with the performance of the work, both under the contract for the performance of such work and in fact;
2. the worker performs work that is outside the usual course of the hiring entity’s business; and
3. the worker is customarily engaged in an independently established trade, occupation, or business of the same nature as the work performed for the hiring entity.

Prong A: “Free From Control And Direction”

The Court first discussed the “A” prong, which is akin to the common law control standard. The Court concluded that a worker who is, either by contract or by practice, subject to the type and degree of control a business typically exercises over employees should likewise be considered an employee. Accordingly, businesses must now establish that workers are free of such control to meet this part of the test. The Court confirmed that a business “need not control the precise manner or details of the work” in order to be found to have maintained the necessary control sufficient to lead to a finding of employee status.

Prong B: “Outside Usual Course Of Business”

Prong “B” seeks to determine whether workers can reasonably be viewed as individuals who are providing services to the business in a role comparable to that of an employee, rather than in a role comparable to that of a traditional independent contractor. Workers whose roles are “most clearly comparable” to those of employees include workers whose “services are provided within the usual course of the business” and thus would “ordinarily be viewed by others as working in the hiring entities’ business.”

Prong C: Customarily Engaged In Independent Trade

The third “C” prong seeks to identify those workers that have taken steps to create their independent business. If the worker has independently made the decision to go into business for themselves, they are likely to be found as satisfying this third prong. If, on the other hand, they are “simply designated as an independent contractor by the unilateral action of a hiring entity,” there is a substantial likelihood they will be found to be an employee.

For more information contact one of our attorneys.

Source: https://leclerclecldev.wpengine.com/wp-contentwww.fisherphillips.com/resources-alerts-contractor-apocalypse-california-supreme-court-adopts-broad?click_source=sitepilot06!3159!b2xlZ0BsZWNsZXJjbGF3LmNvbQ==, “Contractor Apocalypse: California Supreme Court Adopts Broad New Misclassification Test,” April 30, 2018.

When California workers have monetary goals they want to reach, they may scrape and save every dime that they earn. However, they may notice that it is taking longer to reach their goals than they had hoped. In some cases, they may simply face more expenses than expected, but in other instances, they may not be receiving their full compensation due to wage theft.

It was recently reported that over 1,000 workers in two other states were affected by this type of action. Reports indicated that the owner of a chain restaurant with 15 locations across the states had committed multiple wage and hour violations. Workers indicated that minimum wage was not met due to non-tipped workers receiving a portion of the tip pool, and they also stated that they were not given overtime pay and charged double for meals taken while on shift.

The U.S. Department of Labor reportedly took action against the restaurant owner in 2015. The owner only recently came to an agreement regarding a settlement, and the amount involved in that agreement was reportedly $5 million. It was noted that the court still needs to approve the terms.

When individuals do not receive their full pay, they can face financial difficulty, especially when they are living paycheck to paycheck. As this case shows, it may be necessary for legal action to take place in order for employees to obtain their rightful compensation. If California workers believe that their employers have committed wage theft, they may want to find out more information on how to address the predicaments.

Source: thedailymeal.com, “Houlihan’s Owner Will Pay $5 Million in Wage Theft Settlement“, Taylor Rock, April 4, 2018

Holding down a job is how most people earn their income. Because these jobs can sometimes seem tedious and often thankless, most individuals seek their pay checks as the reward for putting in their time and effort. However, when workers are not properly compensated, the improper pay can seem insulting and give cause for wage and hour claims.

It was recently reported that a California restaurant is facing considerable fines after an investigation into wage theft allegations. The popular seafood restaurant had apparently been underpaying servers since 2014 as well as not paying them for overtime and requiring them to work off the clock. These workers were reportedly paid $4 an hour in some cases, which is far below the minimum hourly wage.

Apparently, 25 workers were affected by this wage theft, and an investigation began after workers filed complaints with a civil rights group. As a result, the restaurant owners are facing over $500,000 in fines. Those fines relate to giving back pay to workers that totals $471,756 and nearly $48,000 in penalties for the wage theft and other violations.

Wage and hour claims can be effective means for obtaining rightful compensation. As this California case shows, taking this type of action may be the only way to ensure that wage theft does not continue. If other workers feel that they have been improperly compensated by employers or otherwise unjustly paid, they may wish to explore their legal options as well. Speaking with employment law attorneys could help concerned parties better understand their rights and options.

Source: Hollywood, CA Patch, “Popular Hollywood Eatery Fined $500K For Exploiting Servers“, Feb. 26, 2018

Going to work, performing duties and earning a paycheck is a common routine. Working hard is generally how most California residents earn a living that allows them to provide for themselves and their families. Even if they do not feeling that they are working their dream jobs, they may still appreciate the ability to generate a useful income. However, when an employer fails to properly compensate workers, wage and hour claims may become necessary.

It was recently reported that workers at four call centers in another state filed a complaint due to wage theft. The call centers are all operated by the same company, General Dynamics. The employees earn an hourly wage, but they believe that their positions are being misclassified and that they are being paid less than they should earn.

One worker who had been promoted twice since she started working for the company stated that the she only earns 59 cents more than when she first began at her lower-level position. She believes that she and other workers are performing duties that go beyond their classified positions but are not being properly compensated for the work. If an investigation into the complaints finds that wage theft has occurred, the company could owe approximately $100 million in back wages.

Being deprived of rightfully earned wages can easily cause tremendous hardships on workers and their families. If concerns regarding proper compensation have come about, California workers may wish to determine their best options for dealing with the issue. If they feel it could suit their needs, they may wish to consult with knowledgeable attorneys to determine whether filing wage and hour claims may be necessary.

Source: wjtv.com, “General Dynamics accused of wage theft by employees“, Lanaya Lewis, Feb. 5, 2018

Unfortunately, many California residents may find themselves cheated out of fair compensation at some point in their lives. The incident may come about due to unclear agreements or simply because of unjust actions. Even individuals who have steady employment could find themselves needing to make wage and hour claims due to not being properly compensated for their services.

It was recently reported that a restaurant in another state must pay back numerous employees due to wage violations. Apparently, 58 employees at the restaurant are in line to receive back pay as well as compensation for other damages. The agreement that recently came into effect requires the owner of the restaurant pay back approximately $170,000 in wages and an equal amount to cover other damages.

The U.S. Department of Labor conducted an investigation into the restaurant, though it was unclear what may have sparked the investigation. Nonetheless, it was discovered that the restaurant owner had been paying non-tipped trainees below the minimum wage, at $3.75 an hour. Additionally, employees who worked over 40 hours a week were not given overtime pay. The restaurant apparently had not returned a request for comment at the time of the report.

If California workers are being improperly compensated for their work-related duties, action may need to be taken. Filing wage and hour claims could bring attention to the wrongdoing and allow individuals to work toward obtaining the compensation they deserve. Parties who feel that taking this step could help their situations may wish to consider speaking with experienced attorneys regarding their options.

Source: CBS Chicago, “Chicago Restaurant To Pay $339,000 In Wage-Violation Case: Feds“, Bob Roberts, Dec. 6, 2017

Not receiving proper compensation for services can understandably make many workers feel unsettled. California residents often work hard and put in long hours to gain an income, and losing out on earned money can make life more difficult. When workers know that their employer has not properly compensated them, they may need to take legal action in order to receive that unpaid money through wage and hour claims.

It was recently reported that such an issue took place in another state, and the company involved agreed to pay back wages to affected workers. The report stated that workers for the company carried out duties relating to filling and packaging orders for custom aerosol products. Those workers were often provided by staffing agencies, and the company attempted to use the agency to compensate the workers.

However, the company was reportedly violating wage and hour laws by not meeting minimum wage and overtime pay requirements. As a result, a claim was filed against the company as nearly 480 workers were impacted by these violations. The claim resulted in the company agreeing to pay $1 million to rectify the situation.

Because many people have a dire need for the income they earn, not being fully paid earned wages can cause serious problems. If California workers believe that their employers have violated laws regarding their pay, they may wish to find out more information on wage and hour claims. Knowledgeable attorneys may be able to provide useful information to concerned individuals hoping to gain justice for such wrongdoing.

Source: telegram.com, “Dudley firm settles wage violation claims“, Brian Lee, Nov. 22, 2017

When employees suffer mistreatment on the job, it could come in various forms. Discrimination, harassment and wage theft are all common injustices that numerous workers face every day. Because the income made often allows individuals to provide for themselves and their families, not being properly compensated for work can seem especially difficult to handle. Luckily, parties may be able to take action through wage and hour claims.

It was recently reported that a class action lawsuit is underway in California due to wage violations. Reports stated that multiple workers at a luxury resort have indicated that their employers require workers to miss breaks, and after missing those breaks, the workers are reportedly then told to doctor the time sheets to make it appear as if they did take their breaks. This falsification results in their employer not having to compensate them for working during those times.

Additionally, workers have to buy many of the supplies needed to carry out their job-related duties. However, they are not reimbursed for those purchases. They are also not paid for travel time that it takes to get to work even though they are required to park off-site.

These violations can seriously hinder the workers financially, and moving forward with the lawsuit was likely in their best interests. If other California workers feel that they are not receiving proper compensation for their provided services, they may wish to consider filing wage and hour claims of their own. Consulting with employment law attorneys may help them better understand their options and whether such action could suit their circumstances.

Source: laist.com, “Workers At Luxury Rancho Palos Verdes Resort Sue Over Alleged Wage Theft Violations”, Julia Wick, Oct. 19, 2017