Publications

This article is Part 1 of a two-part series providing an overview of recent United States Supreme Court decisions in employment law.

The United States Supreme Court issued several decisions during the past year that may affect California employers. We summarize the most important of these decisions below.

Employers face a host of challenges to properly paying employees, particularly when it comes to overtime. When employees are properly classified as “exempt” from the overtime rules, an employer need not worry about these issues. But, the penalties for misclassification can be significant.

The Equal Employment Opportunity Commission (“EEOC”) recently published on its website what it calls a “resource document,” called “Employer-Provided Leave and the Americans with Disabilities Act.” The EEOC’s stated purpose is to address an increased volume of charges alleging violations of the Americans with Disabilities Act (“ADA”). The agency says that its document is consistent with existing regulations and enforcement guidance. Below is a summary of the key points.

When it comes to healthcare, two facts are evident: costs keep increasing and we could all do more to stay healthy. So, voluntary employer-sponsored wellness programs would seem to be a win-win. By incentivizing employees to give up smoking, eat less and move more, for instance, employers can control health insurance costs and ensure a healthier workforce. Employees benefit from the financial incentives offered by their employers, and the long-term effects of healthier living.

Legislatures and courts in recent years have required employers to recognize the familial responsibilities that affect workers’ ability to work. Expanded sick leave laws now permit employees to take paid time off to care for ill family members. Last year, San Francisco passed the “Family Friendly Workplace Ordinance,” requiring employers to consider flexible schedules that allow employees to meet family care obligations.

California employers generally are covered by one or more Industrial and Welfare Commission Wage Orders. The Wage Orders specify minimum requirements for wages, hours and certain working conditions. Most Wage Orders require employers to provide “suitable seats when the nature of the work reasonably permits the use of seats.”

When Governor Brown signed Senate Bill 3 into law on April 4, 2016, California joined New York as the first states in the nation with a plan to implement a $15 per hour minimum wage. The news stories over simplify the new law, which not only phases-in minimum wage increases over several years, but also includes some potential delays and different schedules based on business size. Employers therefore have time to plan for the economic effects on the cost of running their businesses.

Employers must provide a qualified individual with a disability (that is, an employee who can perform the “essential” functions of her job, with or without accommodation) with “reasonable” accommodations. When an employee requests extended time off, flexible scheduling, telecommuting, and related accommodations, determining whether the request is reasonable can be complicated.

The U.S. Census Bureau projects that by the year 2020, approximately 20% of the U.S. population will be age 65 or older. Federal and state governments continue to debate the effect of the aging population on public pension and health care systems. At the same time, employees are increasingly extending their working lives, many by choice and others by necessity, resulting in an aging workforce.

In late 2015, the California Fair Employment and Housing Council finalized changes to regulations addressing employment discrimination, harassment, and retaliation prevention. The new regulations are effective on April 1, 2016, and require significant changes to California employers’ related policies.

The presidential primary season is upon us. The contests for both parties’ nominations are heated, reflecting the country’s politically divided mood. Employees naturally will bring their viewpoints and political beliefs into work; discussion will increase as the June California primary and November general election dates approach.

It is human nature for employees to want to know how much their co-workers are paid. Even though most of us would not ask directly, compensation is often a topic at the watercooler, especially after the employer announces raises or bonuses.