Employers Statewide Relieved by Recent Meal-and-Rest Break Decision

State Supreme Court Ruling in Brinker Case Spares a Broad Range of Golden State Industries Including Construction, Restaurant, Trucking and Hospitality

Employers paying wages in the state of California may breathe easier tonight due to the landmark labor law decision on the case, Brinker Restaurant Corp. v. Superior Court, which was unanimously passed yesterday, April 12, 2012, by the California Supreme Court. 

At the heart of the case lay the question of an employer’s duties when it came to providing meal breaks for their employees.  The law clearly states that employers are required to provide workers who work over 6 hours with a full, unpaid, half-hour, responsibility-free meal period.  What was unclear was whether the employer was required to police these meal periods; forcing employees to stop working entirely during their break, regardless of how practical that might be, or any possible negative impacts this might have on the employee. This kind of absolute blind enforcement raised issues for employers and employees in many industries where a forced total cessation of work related activities might threaten the success of a delicate procedure, as in the health care and construction industries, or where it might cause employees to lose tips or a sales commission.

In what many seem to consider a “common sense” decision, the Supreme Court chose to alleviate these concerns.  Now, although employers must provide their employees with the opportunity to take a break, that time is to be considered as belonging entirely to the employee.  The employee may, therefore, choose to cut their meal period short, or to skip it entirely.  It is no longer the duty of the employing company to ensure that employees drop everything and take a rest, only to ensure that it is possible for them to do so. 

The hope is that by allowing this flexibility in the timing and length of meal breaks, fewer class action law suits will be filed against employers in businesses where it is not always reasonable for employees to drop everything at a pre-set time in order to take a break.  This also releases employers from the financial concern of spending management time policing employee breaks.

 It should be noted and emphasized that employers cannot in any way compel employees into giving up their meal periods without paying them a penalty of an extra hour’s worth of wages at the coerced employee’s regular rate of pay. Giving up their meal period must be the sole decision of the employee if the employer is to be released from this lawful obligation. Furthermore, if an employee chooses to work through their break period, the employer is still responsible to pay them for all time spent working.

Other important clarifications set forth by the court, and a simple bulleted list of labor laws as they have been interpreted by this decision can be found (here)[link to http://californiaemploymentlaw.foxrothschild.com/tags/brinker-restaurant-corp-v-supe/].

The full 63 page court decision may be found (here)[link to http://www.courtinfo.ca.gov/opinions/documents/S166350.PDF].

For more information call Brett Adolph at 714.467.3434 x 231 or visit paydayonesource.com.

Payroll Tax Update

Check out the latest payroll taxes, limits and quick links. This is a handy tool for any medical practice. Click here.

For more information call Brett Adolph, 714.467.3434.

Federal Government to Recover Money From Employers

As you know, a Federal tax levied on employers covered but the Unemployment Insurance Program at a rate of 6.0% on annual wages paid up to $7000 per employee. With full credits in place, employers pay only .6% per covered employee, per year.

The credits can be reduced when a state has an outstanding advance or loan for two consecutive years, thereby allowing the Federal government to recover their monies directly from employers.

As a result of outstanding loans, tax reduction of .3% will be applied to wages paid in 2011 for 21 states, inculding California.

For more information please call Brett Adolph, 714.467.3434 x 231

Payroll Tax Cuts; To Cut or Not To Cut?

With the expiration of the payroll take cuts just around the corner, there has been a lot be debate on this topic. Check out this great article about what the GOP candidates are saying about the cuts, here.

For more information call Brett Adolph, Payday Payroll at 714.467.3434

HR Alerts

Changes to OSHA Recordkeeping Requirements. Published on June 22, 2011, in the Federal Register, the federal Occupational Safety and Health Administration (OSHA) proposed changes to its current requirements on recordkeeping and reporting of employee injuries and illnesses. OSHA is seeking comments from the public until September 20, 2011.

Proposed Rules Related to Health Insurance Exchanges. Published on July 15, 2011, in the Federal Register, the U.S. Department of Health and Human Services (HHS) issued two proposed rules: (1) Establishment of Exchanges and Qualified Health Plans and (2) Standards Related to Reinsurance, Risk Corridors and Risk Adjustment. In regards to the operation of health insurance exchanges under the Patient Protection and Affordable Care Act (PPACA), the rules assist with the maintenance of premium stability in the exchanges upon formation. Public comments are due on or before September 28, 2011.

Unemployment Discrimination Legislation. Introduced on July 12, 2011, by the U.S. House of Representatives, the proposed Fair Employment Opportunity Act of 2011 would prohibit employers and employment agencies from discriminating against the unemployed or placing job advertisements or posts stating that unemployed individuals are unqualified.

Final SEC Whistleblower Program Rules. Effective August 12, 2011, the U.S. Securities and Exchange Commission (SEC) issued final rules to implement the Dodd-Frank whistleblower program, such that publicly traded employers should not interfere with an employee’s communication efforts with the SEC or take any adverse actions against an employee for exercising his or her rights under the whistleblower provisions.

For more information about Human Resources call Brett Adolph at 714.467.3434 x 231

Check References Before Hiring

Everyone practice has or has had a problem employee at some point. Handling employees can be difficult and scary because of the legal ramifications associated if not handled properly. Nip problem employees in the bud by calling references before hiring. Here is an great blog about this process, click here.

Brett Adolph

PayDay Work Force Solutions

brett@paydayonesource.com