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Alert Newsletter February 16, 2018

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Alert Newsletter February 16, 2018 VOLUME 44, NUMBER 5 ● FEBRUARY 16, 2018 Special Elections Set Is Worker an Employee or in Three Los Angeles Independent Contractor? County Assembly Two Court Cases Review Complex Issue Districts Election Day Properly classify- Grubhub will come ing an individual One of the most recent and closely early for as an employee watched cases is a lawsuit filed in Cali- voters in three versus an indepen- fornia against Grubhub. Instead of set- Los Angeles dent contractor has tling, the parties went to a bench trial County-based always been a starting in September 2017 and finished Assembly daunting task for any business/employer, closing arguments at the end of October districts due to year-end resignations. especially in California. A recent U.S. 2017. On February 8, 2018 in the case of • Assembly District (AD) 39, formerly district court ruling brings some clarity to Raef Lawson v. Grubhub, Inc., the U.S. represented by Assemblymember Raul the issue and a still-unresolved court case court for the Northern District of Califor- Bocanegra (D-Pacoima); before the California Supreme Court may nia held that the former Grubhub delivery • AD 45, formerly represented by provide more guidance soon. driver was properly classified as an inde- Assemblymember Matt Dababneh The difficulty for businesses and pendent contractor. (D-Encino); and employers in California has been the Lawson worked as a restaurant deliv- • AD 54, formerly represented by subjective and inconsistent analysis used ery driver for Grubhub in Southern Cali- Assemblymember Sebastian Ridley- to determine whether an individual quali- fornia for four months in late 2015 and Thomas (D-Los Angeles). fies as an employee versus an indepen- The Special Primary Election is See Is Worker an Employee: Page 4 dent contractor. scheduled for Tuesday, April 3 with the runoff coinciding with the regularly scheduled June 5 Primary Election. The runoff election will determine who fills the vacant seat through December. CalChamber Business Issues The winning candidate in the Novem- ber General Election will then serve a full and Legislative Guide two-year term. Voters will be asked four times in 2018 who they want to represent them in the lower house of the Legisla- Premier Sponsor: Chevron ture. (The regular Primary Election to Available to download: choose the top two candidates for the November General Election is separate • PDFs of individual issue articles and entire Guide from the special election runoff.) • e-book edition Multiple Candidates All three districts—considered “safe” www.calchamber.com/businessissues See Special Elections: Page 5 Expanding Opportunity: Inside 2018 An Agenda for All Californians Support Prop. 68 Water Bond: Page 5 WWW.CALCHAMBERALERT.COM FEBRUARY 16, 2018 ● PAGE 2 CALIFORNIA CHAMBER OF COMMERCE Labor Law Corner New Parent Leave Act Applies to Employees Not Subject to FMLA/CFRA employees to take up to 12 weeks of eligible for either Parental Leave or unpaid, job-protected leave to bond with FMLA/CFRA leave—not both. a newborn, or a child placed with the employee for adoption or foster care. Overlap May Occur Previously, only employers with 50 or That does not mean, however, that more employees had to provide eligible employers covered by FMLA/CFRA employees with baby-bonding leave. shouldn’t be concerned with the New That’s because those employers were Parent Leave Act. Even if you are a covered by the federal Family Medical covered employer under FMLA/CFRA, Erika Pickles HR Adviser Leave Act (FMLA) and the California there may be times when you have an Family Rights Act (CFRA)—laws that employee who is not eligible for FMLA/ How does the New Parent Leave Act give employees the right to take protected CFRA, but is eligible for Parental Leave. interact with the federal Family Medical time off for certain qualifying reasons, For instance, an employee may meet Leave Act/California Family Rights Act? one of which is bonding with a new child. the first two eligibility requirements under Beginning January 1, 2018, Califor- FMLA/CFRA (worked for you for at least nia’s New Parent Leave Act (Parental Interactions with FMLA, CFRA 12 months and 1,250 hours), but not be Leave) requires employers with 20 or A common question about Parental eligible for FMLA/CFRA because the more employees to allow eligible Leave is how it interacts with FMLA and employee works at a worksite where you CFRA leave. To be eligible for Parental have fewer than 50 employees within a Leave, an employee must have worked 75-mile radius. The employee, however, for you for at least 12 months, worked at will be eligible for Parental Leave if the least 1,250 hours in the last 12 months, employee works at a worksite with at least and work at a worksite with at least 20 20 employees within a 75-mile radius. California Chamber Officers employees within a 75-mile radius. The New Parent Leave Act says that Column based on questions asked by callers Terry MacRae Parental Leave is available only to on the Labor Law Helpline, a service to Chair employees who are not subject to both California Chamber of Commerce preferred Grace Evans Cherashore FMLA and CFRA. That means if an and executive members. For expert explana- First Vice Chair employee is eligible for baby-bonding tions of labor laws and Cal/OSHA regula- Mark Jansen leave under FMLA/CFRA, that employee tions, not legal counsel for specific situations, Second Vice Chair is not eligible for leave under the New call (800) 348-2262 or submit your question at www.hrcalifornia.com. Donna L. Lucas Parent Leave Act. Employees can be Third Vice Chair Susan Corrales-Diaz Immediate Past Chair CalChamber-Sponsored Seminars/Trade Shows Allan Zaremberg President and Chief Executive Officer More at www.calchamber.com/events. 13–14, Santa Monica. (800) 805-5385. Labor Law International Trade Alert (ISSN 0882-0929) is published weekly HR Boot Camp. CalChamber. February 28, Canada Day Ag Forum. The Consulate during legislative session with exceptions by San Diego; April 11, Oakland; April 26, General of Canada, California Farm California Chamber of Commerce, 1215 K Street, Suite 1400, Sacramento, CA 95814- Costa Mesa; June 5, Santa Clara; August Bureau Federation and CalChamber. 3918. Subscription price is $50 paid through 21, Sacramento; September 5, Long February 22, Sacramento. (916) membership dues. Periodicals Postage Paid at Beach. (800) 331-8877. 930-1233. Sacramento, CA. Leaves of Absence: Making Sense of It All. Import Compliance Training Program. POSTMASTER: Send address changes to Alert, CalChamber. March 15, Sacramento; Orange County Center for International 1215 K Street, Suite 1400, Sacramento, CA 95814-3918. Publisher: Allan Zaremberg. March 22, Pasadena; June 21, San Trade Development. February 23, Santa Executive Editor: Ann Amioka. Associate Editor: Diego; August 10, Oakland. (800) Ana. (714) 564-5415. Sara Espinosa. Art Director: Neil Ishikawa. 331-8877. Asia Pacific Business Outlook Conference. Capitol Correspondent: Christine Haddon. Business Resources University of Southern California Permission granted to reprint articles if Higher Taxes or Real Reform Tax Seminar. See CalChamber-Sponsored: Page 6 credit is given to the California Chamber of Commerce Alert, citing original publication Indo-American Chamber. February 28, date of article, and reprint is mailed to Alert Milpitas. (650) 450-0388. at address above. Capitol Summit and Sacramento Host Email: [email protected]. Breakfast. CalChamber. May 23–24, Home page: www.calchamber.com. Sacramento. (916) 444-6670. Next Alert: March 2 TECHSPO LA 2018. TECHSPO. June WWW.CALCHAMBERALERT.COM CALIFORNIA CHAMBER OF COMMERCE FEBRUARY 16, 2018 ● PAGE 3 Immigration Enforcement: State Officials Issue Guidance for Employers California pany records. Instead, ICE must present written notice of the employer’s and Attorney General legal documentation before employers employee’s obligations arising from the Xavier Becerra can allow access. inspection. The written notice must and Labor Employers cannot voluntarily allow contain specific information and must be Commissioner an ICE agent to enter any nonpublic areas hand-delivered in the workplace, if pos- Julie Su this of a business without a judicial warrant. sible. An “affected employee” is one week issued two The employer can take the agent to a identified by the inspection results as documents for nonpublic area to verify the warrant, as potentially lacking work authorization or California long as no employees are present and the having document deficiencies. employers employer doesn’t provide consent to Unions also have the right to receive dealing with search nonpublic areas in the process. notices. California’s Employers cannot voluntarily allow An employer that fails to follow any Immigrant agents to access, review or obtain of these notice requirements can be fined Worker Protec- employee records without a subpoena or between $2,000 to $5,000 for a first tion Act (AB 450). judicial warrant. violation and $5,000 to $10,000 for each • Attorney General Becerra issued an The prohibition does not apply to subsequent violation. advisory providing an overview of and Form I-9 or other documents for which a At the same time, federal penalties for guidance on the privacy prescriptions Notice of Inspection (NOI) was provided Form I-9 violations can range from a under AB 450. to the employer. couple hundred dollars to more than • Commissioner Su also issued joint $20,000. guidance on frequently asked questions Notify Employees to help employers and workers under- Employers must follow specific Preparation Is Essential stand and comply with the new state law. requirements related to Form I-9 inspec- Because the timeframes are so short, Links to both documents are available tions. For example, within 72 hours of preparation is key to meeting the notice in the media section on the Attorney receiving a Notice of Inspection, Califor- requirements.
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