Disney’s $43 Million Settlement: Legal Implications for Employers

Disney’s $43 Million Settlement: Legal Implications for Employers

ByStaff

In a significant legal settlement, Disney has agreed to pay $43 million to resolve claims of systematically underpaying female employees. This case underscores the importance of addressing pay inequities and the legal risks associated with compensation practices. The lawsuit, filed in 2019 by LaRonda Rasmussen, highlighted pay disparities between her and male colleagues with the same job title. Approximately 9,000 current and former female employees joined the case. As part of the settlement, Disney will pay $43.25 million and conduct a pay equity analysis over the next three years.

Federal District Court Vacates Biden’s Department of Labor Overtime Rule

Federal District Court Vacates Biden’s Department of Labor Overtime Rule

ByStaff

In 2024, the U.S. Department of Labor (“DOL”) implemented a final rule that raised the salary thresholds for classifying certain employees as exempt from overtime pay under the Fair Labor Standards Act (“FLSA”). The rule, which was set to increase these thresholds in two phases—one in July 2024 and another in January 2025—was expected to expand overtime eligibility to approximately four million employees. The rule also included automatic adjustments to the salary thresholds every three years based on Census data. However, a federal court in Texas blocked the rule nationwide on November 15, 2024, effectively reinstating the prior, lower salary thresholds established under the Trump administration in 2019.

Turning the Tide: California Employers Score Big Against PAGA Lawsuits

Turning the Tide: California Employers Score Big Against PAGA Lawsuits

ByNellie Azimzadeh

After years of enduring the heavy burdens of California’s PAGA rules, employers are finally seeing signs of relief. In a recent decision, a California appeals court ruled that if an employee loses their individual claims in arbitration, they cannot move forward with a PAGA lawsuit as a representative of other workers. This is a significant victory for employers because it means arbitration can effectively shut down costly and time-consuming PAGA lawsuits in certain situations. In this case, the court agreed with the employer’s argument that since the employee’s wage and hour claims were disproven during arbitration, they no longer had standing to pursue a broader lawsuit under PAGA.

California Regulators Take Aim at Resume Screening and Other Automated Tech

California Regulators Take Aim at Resume Screening and Other Automated Tech

ByStaff

At a recent public meeting, California privacy officials advanced several initiatives that could significantly impact businesses, especially employers. The California Privacy Protection Agency (“CPPA”) has initiated formal rulemaking on Automated Decision-Making Technology (“ADMT”), such as resume-screening tools, facial recognition, and AI systems. The proposed regulations would require businesses to provide a pre-use notice about ADMT, allow consumers to opt out (with certain exceptions), and give them access to information on how ADMT is used. Employers and businesses utilizing AI tools must evaluate whether these rules apply and plan for potential carve-outs, particularly in employment contexts.

Employee Classification in the Tech Industry

Employee Classification in the Tech Industry

ByShakti Vadgama

Employee classification in the tech industry is essential for defining legal rights, benefits, and work conditions, impacting both the workers and companies involved. The two primary classifications in the U.S. are “employees” and “independent contractors.” Employees are typically entitled to benefits such as health insurance, minimum wage protections, paid leave, and unemployment benefits. Independent contractors, however, are typically exempt from these benefits, offering them more flexibility and autonomy over their work but without the security of traditional employee benefits.

Careful What You Say: NLRB Tightens the Rules on Union Talk

Careful What You Say: NLRB Tightens the Rules on Union Talk

ByNellie Azimzadeh

In a landmark decision, the National Labor Relations Board (NLRB) has significantly restricted what employers can say to workers about the potential impacts of unionization. This ruling overturns a 40-year-old precedent and establishes a higher standard for lawful communication, requiring statements to be strictly fact-based and devoid of any coercive undertones. The case, which involved a national hospitality chain, addressed statements made by managers that implied unionizing could harm employees’ direct relationship with management or lead to adverse changes in benefits. The Board determined such statements could subtly pressure employees to avoid unionizing, even if they stopped short of explicit threats. NLRB Chairman emphasized that the revised standard aims to protect employees’ rights to make free choices about union representation while ensuring employers can still express their views non-coercively.

Employers – Remember that the Required Salary Level for FLSA-Exempt Status Will Increase on January 1st

Employers – Remember that the Required Salary Level for FLSA-Exempt Status Will Increase on January 1st

ByStaff

Starting January 1, 2025, the salary threshold for overtime exemptions under the Fair Labor Standards Act (“FLSA”) will increase again. Employers must ensure compliance with these changes. The FLSA mandates that covered employers pay overtime at time-and-a-half for hours worked over 40 in a week, but certain employees—specifically bona fide executive, administrative, or professional employees—are exempt from minimum wage and overtime provisions under the “white-collar” exemption. Additionally, there is a separate exemption for highly-compensated employees (“HCE”).

California Court Expands Tools for Invalidating Arbitration Agreements

California Court Expands Tools for Invalidating Arbitration Agreements

ByStaff

A recent ruling by a California appeals court clarified the implications of the Ending Forced Arbitration of Sexual Assault and Sexual Harassment Act (EFAA), stating that it not only prohibits the arbitration of sexual harassment claims but also extends this prohibition to all claims brought in the same case. This decision grants employees in California an important avenue to avoid arbitration altogether, which could impact employers across the country as the interpretation of the EFAA evolves through litigation.

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.

Employee Stock Ownership Plans: Legal Considerations

Employee Stock Ownership Plans: Legal Considerations

ByStaff

Employee Stock Ownership Plans (ESOPs) are increasingly popular as a means of employee compensation and corporate finance. They offer unique benefits by aligning the interests of employees with those of shareholders, thereby potentially enhancing productivity and company loyalty. However, setting up and maintaining an ESOP involves navigating a complex web of legal considerations. This essay outlines key legal aspects of ESOPs, including regulatory compliance, fiduciary duties, and tax implications.