United States: Increased Liability For Employers That Use Labor Contractors

Assembly Bill 1897 adds Section 2810.3 to the Labor Code, and imposes liability on companies that contract for labor, including those that use staffing agencies. If a company utilizes a labor contractor, this new law allows for the company to be held liable for the labor contractor’s failure to properly pay wages to, or failure to secure workers’ compensation coverage for, the workers provided by the labor contractor. The law applies (1) to companies […]

By | January 23rd, 2015 ||

United States: Expanded Statute Of Limitations For Liquidated Damages On Minimum Wage Claims

Recently, some courts in California had held that a lawsuit seeking liquidated damages for minimum wage violations were subject to a one-year statute of limitations. Assembly Bill 2074 was introduced in response to these decisions and clarifies that a lawsuit seeking such damages can be filed at any time before the expiration of the statute of limitations applicable to the underlying wage claim. This means that the statute of limitations can often be three […]

By | January 23rd, 2015 ||

United States: Employer Properly Challenged CUIAB’s Determination That Worker Was Not An Independent Contractor

West Hollywood Cmty. Health & Fitness Ctr. v. CUIAB, 2014 WL 6852700 (Cal. Ct. App. 2014)

After leaving his job as a massage therapist at West Hollywood Community Health & Fitness Center (d/b/a “Voda Spa”), Mario Serban applied for unemployment benefits. The Employment Development Department sent Voda Spa a letter indicating that Serban had been an employee (and not an independent contractor) and that he had good cause to leave work, thus rendering him eligible […]

By | January 22nd, 2015 ||