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Effective January 1, 2008, the minimum wage in California increased to $8.00 per hour. However, a higher minimum wage of $9.36 per hour applies to employees working in San Francisco. Posters advising employees of the new...
Category: Wage & Hour Issues
On July 24, 2007 the federal minimum wage will increase from $5.15 to $5.85 per hour, the first increase since 1997. The “Fair Minimum Wage Act of 2007” provides for a three-step increase in the minimum wage,...
Apr 20, 2007
Wage & Hour Issues
California Supreme Court Expands Employer Liability for Missed Meal and Rest Periods
On April 16, 2007, the California Supreme Court ruled that payments mandated by California Labor Code § 226.7 for meal and rest period violations are “wages” and not “penalties.” The Court’s ruling that these...
Mar 26, 2007
Wage & Hour Issues
KM&M Client Prevails in Case with Important and Favorable Implications for Hospitality Industries
It is customary in the hospitality industry for banquet operators to assess a “service charge” or a “service fee” of anywhere from 15% to 25% of the cost of food and beverage. Usually, most of the fee is paid to the...
Nov 27, 2006
Wage & Hour Issues
DOL Says Information Technology Staff May Be Essential, but Not Necessarily Exempt From Overtime
Many employers correctly believe that their information technology (IT) support staff, who troubleshoot computer problems and keep IT systems running, perform work that is essential to the company’s business operations....
Dec 07, 2005
Wage & Hour Issues
New York Minimum Wage to Increase
Effective January 1, 2006, the New York State minimum wage will increase from $6.00 per hour to $6.75 per hour. It will increase again to $7.15 per hour as of January 1, 2007. Any increase in the federal minimum wage above...
Under the Fair Labor Standards Act, 29 U.S.C. §§ 201, et seq. (the “FLSA”), employers must compensate employees for activities performed during the workday. On November 8, 2005, the U.S. Supreme Court issued...
Sep 01, 2005
Wage & Hour Issues
California Supreme Court Rules That Corporate Officers and Directors Cannot Be Personally Liable For Wage Claims Under State Law
On August 11, 2005, the California Supreme Court ruled that corporate directors and officers cannot be held personally liable for a company’s failure to pay wages owed to its employees. Reynolds v. Bement, 36 Cal. 4th 1075...
Jan 02, 2005
Wage & Hour Issues
California Court Permits Class Action against Employer that Considers Workers’ Compensation Expenses and Cash and Inventory Shortages in Calculating Bonuses
Like many employers, Ralphs Grocery Company considers the profitability of the business as a factor in calculating employee bonuses. In a recent decision, a California appellate court allowed a former employee to proceed...
Aug 14, 2004
Wage & Hour Issues
California Reforms Labor Code Private Attorneys General Act of 2004; Revised Law Is More Employer-Friendly
KM&M attorneys have been warning our California clients since the beginning of the year about the Labor Code Private Attorneys General Act of 2004, codified at Labor Code section 2699. This legislation created hefty new...