Cal-Peculiarities: How California Employment Law is Different - 2023 Edition

©2023 Seyfarth Shaw LLP www.seyfarth.com 2023 Cal-Peculiarities | 199 Labor Code; these two sources of authority establish complementary regulations governing wage and hour claims. The Wage Orders address monetary compensation and working conditions, covering such items as minimum wage, reporting-time pay, overtime premium pay, double-time premium pay, certain payroll deductions, employerrequired uniforms and equipment, meal periods, and rest breaks. These requirements affect all employees who are not expressly exempted, and exemptions are interpreted narrowly. The Wage Orders impose further requirements, as to both exempt and nonexempt employees, with respect to such matters as change rooms and resting facilities, seats, temperature, and elevators. Many rules are identical from one Wage Order to the next. In promulgating the Wage Orders, the IWC engaged in a quasi-legislative capacity;5 a Wage Order thus deserves “the same dignity” as a statute and is considered “presumptively valid.”6 Every employer subject to a Wage Order must post the order in a conspicuous place seen by employees during work hours. Multiple occupational orders may apply to an employer not covered by an industry order. For a copy of the Wage Orders, see https://www.dir.ca.gov/iwc/wageorderindustries.htm. Printed versions of the industry Wage Orders, for workplace posting, can be ordered from http://www.dir.ca.gov/wp.asp. It is not always clear which Wage Order applies to a particular workplace. In one case, workers sued the City of Los Angeles for denying meal and rest breaks. The workers drove vehicles used to pump out sewers and to transport refuse to collection locations. Although the Wage Orders generally exempt public employees, the plaintiffs thought they could rely on Wage Order 9, which applies to commercial drivers even if they are public employees. But the trial court, affirmed by the Court of Appeal, rejected this approach. The Court of Appeal held that Wage Order 9 applies to transportation workers only, and that the plaintiffs, who were involved in wastewater collection, were sanitation workers, not transportation workers. The Court of Appeal reasoned that for purposes of Wage Orders, it is the “main purpose of the business”—not the job duties of the employee—that determines whether a Wage Order applies. Although the workers here operated commercial vehicles to carry out their sanitary function, operating vehicles was not their employer’s primary purpose, but was merely incidental to that purpose. Because the main purpose of the business was not transportation, Wage Order 9 did not apply.7 7.1.2 Summary of major Wage Order provisions While each Wage Order is distinct, the Wage Orders address essentially the same subject matters, in essentially the same order, with often similar if not identical language. Here is a summary of the major recurring provisions. § 3 Hours and Days of Work: Employers must pay daily overtime, weekly overtime, seventh-day overtime, double time for daily hours more than 12, and double time for daily hours more than eight on the seventh consecutive workday. As to any alternative workweek schedule the employer establishes (subject to detailed requirements), the employer must maintain a regular hourly rate, accommodate employees’ religious observances and conflicting schedules, and refrain from coercing employees to vote for or against a proposed alternative workweek. The employer must also honor an employee’s right not to work more than 72 hours per week. § 4 Minimum Wage: California employers must pay the minimum wage, which, for all California employers, has been $15.50 since January 1, 2023. The federal minimum wage, meanwhile, has remained at $7.25 since July 2009. § 5 Reporting Time Pay: Employers must pay reporting-time pay to employees who must “report for work” and who are not provided with at least one-half the usual or scheduled work. Employers must also pay employees for at least two hours of work if they are called back to work without being provided with at least two hours of work. Reporting-time pay is not due if operations have ceased because of threats to employees or property, because

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