TLD's General Counsel Blog

Profit-Based Bonuses are Lawful

In a rare pro-business, pro-employer opinion, the California Supreme Court makes the easy call, holding that profit-based bonuses are lawful

View original document | Send to colleague | Print

McKenna Long & Aldridge

Ross Hyslop

USA
September 18 2007

Outside of California, relatively few employers may have noticed when, on August 23, 2007, the California Supreme Court confronted what it called “a significant question of California wage law.” Why was this event so “significant” in California wage law such a non-issue elsewhere? By confirming it’s okay to pay managers a profit-based bonus derived from subtracting operating expenses from revenues, the court simply validated what most of us had considered not only acceptable for decades, but highly effective in motivating employees.   

Article Submitted By: Attorney Shannon M. Jenkins

Then and Now - Employment Practices for Women

11 Tips on How to Handle Women Employees 

 

The following is an excerpt from the July 1943 issue of Transportation Magazine. This was quite serious at its time and written for male supervisors of women in the work force during World War II - a mere 58 years ago! Obviously, the intent was not to be "funny," but by today's standards, this is hilarious!

For those of you with efficiency issues, pay attention to #8.

There is no longer any question whether transit companies should hire women for jobs formerly held by men. The draft and manpower shortage has settled that point. The important things now are to select the most efficient women available and how to use them to the best advantage.

Article Submitted By: Attorney Shannon M. Jenkins

Keys to protecting your business, part 2

Trained supervisors and the right industrial clinic help meet human resource regulations.

By AUDRIANNE ADAMS LEE
Special to the Register

In Part I last week we identified two key elements that small business owners should implement to protect themselves and their businesses from the maze of federal and state employment regulations – job descriptions and an employee handbook

This week, we add two more key elements to the business owner's "toolbox" – training your supervisors and identifying an industrial clinic.

Article Submitted By: Attorney Shannon M. Jenkins

Keys to protecting your business Part 1

Job descriptions and employee handbooks are human resources elements.

By AUDRIANNE ADAMS LEE

Special to the Register

As a human resources professional helping small businesses, I am often asked, "How can I protect my business from the maze of federal and state employment regulations?" There are a few key elements that every business should have in place, no matter what size you are.

Today I will identify two key elements that you can implement to protect yourself and your business. In addition to providing protection, they also go a long way in improving your status as a "preferred" employer and communicating with your employees. Next week I'll talk about training your supervisors and finding the right clinic.

Article Submitted By: Attorney Shannon M. Jenkins

Can I Maintain Personnel Files Electronically and Destroy the Originals?

Labor Law Corner
OK to Convert Paper Personnel Files
to Electronic Records

Jessica Hawthorne Employment Law Counsel

Can I maintain personnel files electronically and destroy the originals?

There is no law that specifically prohibits electronic retention of personnel files, but there are many rules regarding how the files must or can be reproduced, as well as destroyed.

Electronic Records

Employee Complaints of Workplace Safety are Protected Activities

California Labor Code Section 6400 et seq. mandates that California employers provide a workplace that is safe and healthful for its employees.  California Code of Civil Procedure Section 527.8 authorizes an employer to seek a Temporary Restraining Order and injunctive relief against an individual when there has been a credible threat of workplace violence. Consistent with these employer obligations and remedies, an employer is expected to take reasonable steps to address threatened and actual violence in the workplace.  When it fails to do so and, in fact, takes adverse employment action against an employee complaining of violence, it becomes vulnerable to liability.  This was the lesson learned by the employer in the recent case of Franklin v. The Monadnock Company.

Forum Selection Clauses: Are they Valid?

Employees who are under contract with companies outside of California may not be afforded California’s leading position in the protection of its workers, if the contract contains a forum-selection clause or a choice-of-law provision. If the employee files a case and the company is based outside of California, the employee may be forced to rely on that state’s labor laws to enforce their rights.

For the most part, forum-selection clauses are prima facie valid and enforceable.  It is rather difficult for employees to effectively argue the clause is unenforceable.  In order to be unenforceable, either 1) the inclusion of the clause must be a product of fraud/overreaching by the employer, 2) the employee would be denied his/her right to be heard in court if there was a forum change, or 3) the transfer would violate public policy of the forum where the suit was brought. With such a high standard to meet there have been many cases where forum-selection clauses have been enforced even with draconian results for the employee.

Providing Reasonable Accommodations for Job Applicants

Most employers are well aware of the American's with Disabilities Act. Due to the often ambiguous provisions of this rule the number of attorneys who specialize in defending employers sued for violating the ADA has grown exponentially. Most HR managers are well versed in the dangers posed by their company's actions in respect to already retained personnel. However, there are other less prominent and yet equality important duties imposed by the ADA. Specifically, the ADA includes strict procedures which govern interview protocol.

Client Alert -Employers Pay For California Cuisine

There's no such thing as a "free lunch" — unless you're a California employee at a work-related meal-time meeting.

California has strict rules and regulations governing employee meal breaks, with harsh penalties for violations. The meal break rules are enforced by the Division of Labor Standards Enforcement (DLSE), also known as the "Labor Commissioner." Recently, the DLSE revised its policies about working lunches and meal-time training.

Employer is Liable for Unpaid Wages for Missed Meal and Rest Periods

Today, the California Supreme Court decided the case of Murphy v. Kenneth Cole Productions.  The court determined that the remedy provided in California Labor Code Section 226.7 constitutes a wage or premium pay and is governed by a three-year statute of limitations, rather than a penalty (carrying a shorter one-year limitations period).  This means greater potential damage awards for employees and greater liability for employers who fail to completely and consistently enforce and document meal and rest periods.  Please click here for full text of opinion.