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Paul Zimmerman
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Showing 17 posts by Dana A. Kravetz.

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Minimum Wage Is on the Rise . . . Again

Attention employers with 26 or more employees operating in the cities of Los Angeles, Santa Monica and Malibu and unincorporated Los Angeles County, on July 1, 2018, the minimum wage you are legally required to pay jumped to $13.25 an hour. This latest increase is a steppingstone to the $15 hourly rate that will be mandated in 2020. (Read More)

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Yet Another Threat to Arbitration

Given the choice, most California employers facing a lawsuit filed by an employee or, in the case of sexual harassment, a complaint with the Department of Fair Employment and Housing (DFEH), would pick arbitration as the favored forum for dispute resolution. Why? Because arbitration is typically a faster, more cost-effective and confidential process for litigants. Likewise, it allows for more streamlined discovery, and imposes simplified rules of civil procedure and evidence. But perhaps the most significant reason employers lean toward arbitration is that an unreasonable damage award is less likely to be levied by an arbitrator, as opposed to a jury. No wonder, then, that mandatory arbitration clauses are a fixture in employment agreements. (Read More)

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Employment Classification Just Took a Left Turn in California

There is big, BIG news out of the California Supreme Court that impacts every employer in the Golden State. At the very least, for California employers, the recent decision in Dynamex Operations West Inc. v. Superior Court is something that should grab their attention. And that’s because for the first time in nearly three decades, the standard to classify an individual as an employee or independent contractor has been altered. (Read More)

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Anticipating Trump’s Impact on Labor Relations in the Hotel Industry

Unlike his oval office predecessor, President-elect Donald Trump is expected to limit federal labor and employment agency activism in wage and hour and other employment-related matters. Hotel owners and franchisors, which in recent months have experienced numerous workforce-related challenges, are likely to witness significant labor and employment policy shifts, a few of which are detailed below. (Read More)

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“Indirect Control” — New NLRB Joint Employer Rule Headed for Appeal

Hoteliers still reeling from the National Labor Relation Board’s (NLRB’s) dramatic change to the legal test for joint employer liability may find some solace in the fact that this issue is destined for appellate review. In August 2015, the NLRB threw a mammoth monkey wrench in the traditional hotel franchisor/franchisee model when, in its highly controversial Browning-Ferris Industries of California (BFI) decision, it revised the test for the joint employer doctrine, dramatically easing the criteria for a company to be considered a joint employer. Then, in January 2016, the NLRB found that both BFI and its sub-contractor, Leadpoint, violated the National Labor Relations Act (NLRA) by refusing to bargain with their employees’ union (the Teamsters). BFI has now filed an appeal with the U.S. Court of Appeals for the D.C. Circuit in an attempt to overturn the NLRB’s new joint employer standard. (Read More)

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Sound and Savvy Operational Solutions to Offsetting the Increased Minimum Hotel Wage

Article originally appeared in HALA Newsletter

In the last issue, we discussed the Los Angeles City Council’s approval of a Citywide Hotel Worker Minimum Wage Ordinance, which required establishments with at least 300 guest rooms to raise their minimum wage to $15.37 by July 1, 2015. Those with 150-300 rooms have until July 1, 2016, to comply, and only hotels that demonstrate severe prospective financial hardships will be exempt.

In order to mitigate the impact of the increased wage, hotels should consider evaluating their operations to find ways to offset these costs. The following are some ways that establishments can take a sound and savvy approach to operational issues in order to keep their bottom lines intact: (Read more)

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The City of Sacramento Votes to Increase the Minimum Wage

In a 6-3 vote, the Sacramento City Council passed an ordinance to raise the minimum wage in gradual increases. The wage will go to $10.50 by 2017; $11 by 2018; $11.75 by 2019; and $12.50 by 2020. Small businesses (with 100 employees or less) will be on a different schedule, working from a timeline that is a year behind larger establishments. By offering health benefits, employers will be able to get a $2 credit, as long as they continue complying with the state minimum wage—which goes up to $10 per hour in January, 2016. (Read more)

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Governor Brown Vetoes Controversial AB 465

On October 11, 2015, Governor Brown vetoed the controversial AB 465, legislation that attempted to make a sweeping prohibition of all mandatory arbitration agreements as a condition of California employment. AB 465 required that any waiver by an employee must be knowing, voluntary and in writing, and could not be an express condition of employment. (Read more)

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NLRB’s Joint Employer Decision Could Uproot Hotel Franchise Model

The National Labor Relations Board (NLRB) has likely thrown a mammoth monkey wrench in the traditional hotel franchisor/franchisee model. (Read more)

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Seminal NLRB Decision Redefines Joint Employer Liability

In a highly anticipated decision, the National Labor Relations Board (NLRB) handed down a ruling today that companies can be held responsible for violations of labor standards committed by their contractors. At issue was whether a waste management firm (Browning-Ferris) could be held responsible for treatment of its contract employees (provided by staffing company Leadpoint Business Services). In stark contrast to its previous labor law decisions of the past 35 years, the NLRB held that Browing-Ferris should be treated as a joint employer. (Read more)