Our employment contracts contain an arbitration clause. Is that ok?

Arbitration in California has evolved over the past 20 years.  While the current mood among legislators and in the courts is to invalidate arbitration provisions that were forced on employees, employers can continue to require disputes to be resolved by arbitration.  However, should the agreement be challenged, it is very likely that the agreement itself and the circumstances of its signing will be scrutinized under a legal microscope. Courts are routinely refusing to enforce poorly drafted or outdated arbitration agreements, so now is the time to review your existing employment documents (contracts, handbooks, stand-alone agreements, policies and procedures) to make sure any arbitration agreements are drafted in a way to maximize their enforceability.

If you would like to review your employment documents with an experienced California employment law attorney, or have questions that weren’t answered here, we invite you to contact JDS Law, Inc. to schedule a consultation.

My employee wants to work through lunch and leave early. Can I agree to that?

Employees can voluntarily work through their lunch.  Be sure to get documentation from the employee showing that the employee chose to not have a compliant meal period.  There is no meal period violation if an employee voluntarily chooses to work during a meal period, as long as the employer:

  • Relieves the employee of all work duties;
  • Relinquishes control over their activities;
  • Permits employees a reasonable opportunity to take an uninterrupted 30-minute break;
  • Does not impede or discourage the employee from doing so; and
  • Completely and accurately records its compliance with California law, including documentation from the employee that it was the employee’s choice to forego or take a shorter meal period.

For more information, we encourage you to read more about compliance with California meal period law.

Can I hire independent contractors to work for me in California?

When it comes to hiring workers as independent contractors (aka “1099 workers”), California employers must proceed with caution.  Since Governor Newsom signed Assembly Bill 5 (“AB 5”) into law on September 4, 2020, the very concept of an independent contractor has fundamentally changed.  That law created an initial presumption that a worker in California is an employee unless the hiring entity proves the worker is truly an independent contractor by satisfying a three-pronged test, the “ABC Test”, including the now-infamous prong B that requires the hiring entity to show that the worker only performs work that is outside the usual course of the hiring entity’s business.  The consequence of AB 5 is that, unless an exemption applies, the only workers who will be considered independent contractors are more akin to subcontractors who perform work that is not like work performed by employees in the business.

What are some must-have employment policies for California employers?

It is not just our exceptional weather that sets California apart from much of the country.  Employment policies that work in other states or that comply with federal law may not work in the Golden State.  With our infamously aggressive plaintiffs’ bar and the proliferation of class action lawsuits and representative actions such as those brought by aggrieved workers under the Private Attorney General Act (“PAGA”), every California employer should have the following employment policies written and communicated to their entire workforce:

  • At-will employment policy
  • Anti-harassment, discrimination, and retaliation policy
  • Timekeeping policy and prohibition against “off-the-clock” work
  • Meal period and rest break policy
  • Lactation accommodation policy
  • Time off and leave policies

These policies can be included in a simple but complete employee handbook, which can be a one-stop shop for all of your employment policies. If you need assistance drafting an employee handbook or have any questions about the above list, contact us.