California’s New Freelancer Law: What Employers Need to Know and How to Comply

California’s New Freelancer Law: What Employers Need to Know and How to Comply

ByNellie Azimzadeh

In a significant move to protect California’s growing freelance workforce, Governor Gavin Newsom signed SB 988, the Freelance Worker Protection Act (FWPA), into law on September 28, 2024. Effective January 1, 2025, this law imposes minimum contract requirements for private employers hiring independent contractors. Similar to the Los Angeles Freelance Worker Protections Ordinance, the FWPA requires written agreements between hiring parties and freelancers. These agreements must detail the nature of the services, compensation rates, and payment deadlines. The legislation aims to ensure that freelancers are paid on time and receive basic protections, helping to formalize and secure freelance work across the state.

New California Law Limits Driver’s License Requirements for Job Applicants

New California Law Limits Driver’s License Requirements for Job Applicants

ByNellie Azimzadeh

A new law signed by Governor Newsom on September 28, 2024, will change the way California employers approach driver’s license requirements for job applicants. Starting January 1, 2025, employers can only require a driver’s license for positions where driving is expected to be part of the job function, and only if no alternative forms of transportation, such as ride-sharing or bicycling, would reasonably meet the needs of the business. Employers should begin assessing their hiring processes to ensure compliance with this new provision of the Fair Employment and Housing Act (FEHA).

New Protections for Pregnant Workers: Key Information for Employers to Keep in Mind

New Protections for Pregnant Workers: Key Information for Employers to Keep in Mind

ByNellie Azimzadeh

The Equal Employment Opportunity Commission (EEOC) recently filed its first lawsuit under the Pregnant Workers Fairness Act (PWFA). The lawsuit claims that Wabash, a national manufacturing company, failed to accommodate an employee’s pregnancy-related limitations, even though the accommodations were comparable to those offered to non-pregnant workers with disabilities. This groundbreaking case highlights the importance of ensuring compliance with this new law, which went into effect in June 2023.

To Exempt or Not to Exempt: Get Ready for the 2025 Overtime Salary Shift!

To Exempt or Not to Exempt: Get Ready for the 2025 Overtime Salary Shift!

ByNellie Azimzadeh

A recent federal court ruling confirmed that the Department of Labor (DOL) has the authority to set a minimum salary for workers to be exempt from overtime pay. In light of recent U.S. Supreme Court decisions, this lower court’s ruling is arguably surprising and, perhaps, is a sign that lower courts are struggling to work out the full ramifications of the U.S. Supreme Court’s recent anti-regulatory rulings.

Breaking Up the Right Way: Dissolving Partnerships Without Regrets

Breaking Up the Right Way: Dissolving Partnerships Without Regrets

ByNellie Azimzadeh

Like divorce, dissolving a partnership is a critical process that, if not handled correctly, can lead to significant legal liabilities. Even when all the partners agree about terminating a partnership, there are numerous legal issues that need to be addressed, such as terminating the partnership’s contracts and distributing assets. Disagreements between partners can further complicate this process, making it essential to navigate dissolution carefully to avoid future legal headache

Employers Beware: California Minimum Wage Set to Rise Again in 2025, with Potential for Further Increases

Employers Beware: California Minimum Wage Set to Rise Again in 2025, with Potential for Further Increases

ByNellie Azimzadeh

Starting January 1, 2025, California’s minimum wage will rise from $16.00 to $16.50 per hour, affecting all employers regardless of size. This increase is part of an annual adjustment based on the Consumer Price Index (CPI), which saw a 3.18% increase over the past year. Along with the hourly wage increase, the minimum salary for full-time exempt employees will also rise, moving from $66,560 to $68,640 per year.

The Fate of Non-Compete Clauses: Texas Judge Blocks FTC’s Nationwide Ban

The Fate of Non-Compete Clauses: Texas Judge Blocks FTC’s Nationwide Ban

ByNellie Azimzadeh

A recent ruling by a Texas federal judge has blocked the Federal Trade Commission’s (FTC) attempt to ban non-compete clauses for most workers. On August 20, 2024, the judge decided that the FTC had exceeded its legal authority by trying to implement a rule prohibiting non-compete agreements, which was set to take effect in September. As a result, the FTC cannot enforce this rule nationwide, allowing employers to continue using non-competes, though they must still comply with state and local laws.

Big Win for Employers: California Supreme Court Clears the Path in PAGA Lawsuits

Big Win for Employers: California Supreme Court Clears the Path in PAGA Lawsuits

ByNellie Azimzadeh

The recent decision by the California Supreme Court in Turrieta v. Lyft, Inc. is a significant win for employers facing multiple lawsuits under the state’s Private Attorneys General Act (PAGA). This ruling clarifies that a plaintiff (the person suing) in one PAGA lawsuit does not have the right to intervene or object to a settlement in another, even if that settlement would effectively end their own case. This decision is crucial for employers as it reduces the uncertainty and potential complications when dealing with overlapping PAGA claims.

Waving Goodbye to Arbitration: New Rules about Waiving Arbitration

Waving Goodbye to Arbitration: New Rules about Waiving Arbitration

ByNellie Azimzadeh

It was long the rule in California that if a party to an arbitration agreement wanted to compel arbitration, it could wait to do so as long as the other party could not demonstrate that they were prejudiced by the delay. Practically, this meant that businesses (employers included) could compel arbitration even after months of delay as long as the other party couldn’t prove they were prejudiced by the delay

The NLRB’s About-Face: The NLRB Abandons Its Joint Employer Rules

The NLRB’s About-Face: The NLRB Abandons Its Joint Employer Rules

ByNellie Azimzadeh

The National Labor Relations Board (NLRB) has abandoned its proposed joint employer rules, which—as we’ve said before—would have made it easier for employees to argue that one or more corporate entities were the employer of record for an employee. From the start, the NLRB’s proposed rule was met with challenges in federal district court in Texas, which struck down the rule for reasons we need not concern ourselves with here. But, just recently, the NLRB has decided to drop its appeal of the Texas federal court’s ruling, effectively meaning that the NLRB’s joint-employer rules remain struck down.