“It’s Beginning to Look a Lot Like… Terminations This Holiday Season”

holiday partyGiven the recent tidal wave of allegations of sexual harassment in politics, the entertainment industry, and social media, employers may want consider the following guidelines in preparation for their company holiday events where alcohol and off-site events may create a combustible mix of unwanted behavior by one employee to another.

Holiday parties may be an excellent opportunity for employees to socialize outside of the confines of the office, and to reward employees for their service, but they can also give rise to employer liability in the absence of appropriate precautions. Before planning your next holiday soiree, review the potential pitfalls and solutions below so that your event can be full of cheer, rather than unpleasant lawsuits.

  1. Serving Alcohol at Company Functions

wine glassesWhile having alcohol available may make typical water cooler conversations less awkward, and can be a way for people to let off steam and celebrate, it can lead to liability for employers in the form of vicarious liability, sexual harassment, social host liability, and other potential issues. Continue reading

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DOL Rule Increasing Minimum Salary Requirements for Exempt Employees Now on Hold Per Court Order

gavelLast month, we discussed how the Department of Labor (DOL) was scheduled to implement a new rule that would increase the minimum salary requirements for exempt employees.  The new rule published by the DOL would have doubled the minimum salary requirements for employees from $455/week to $913/week. This rule was supposed to take effect on December 1, 2016; however, employers can breathe easy for a bit longer.

On November 22, 2016 a federal judge from the United States District Court in Texas temporarily blocked implementation of the rule, in response to a request by 21 states and business groups.  This delay is temporary, while litigation continues and the court makes a determination as to whether the DOL has the authority to implement such a rule. Continue reading

New DOL Rule Increases Minimum Salary Requirements for Exempt Employees Starting 12/01/16

12/01/16: This Rule is currently on hold, per court order. Please read the latest article for news updates on this topic.

On May 23, 2016, the Department of Labor announced a new, final rule that will take effect on December 1, 2016. To the relief of employers, the new rule does not make any changes to the criteria for classifying employees as exempt. Employers can continue to classify employees as exempt or non-exempt under the same duties tests and criteria they used in the past. However, the principal change comes in the form of several heightened minimum salary requirements.

The DOL estimates that in the first year as many as 4.2 million workers would either need to: (1) be reclassified as non-exempt and paid overtime whenever they work more than 40 hours in a workweek; or (2) receive an increase in their salary to meet the new requirement.

exempt-well-maybeUnder the new rule, the minimum annual salary for exempt employees will more than double, from $23,660 ($455 per week) to $47,476 ($921 a week). The minimum annual salary for highly compensated employees will also increase from $100,000 to $134,004. Furthermore, these minimums will continue to automatically increase every three years.

In a new addition to the rule, employers will now be permitted to satisfy up to 10 percent of the annual salary level through non-discretionary bonus and incentive payments, including commissions. Payments to health insurance policies, however, may not be used to satisfy the salary requirement. Continue reading

“It’s Beginning to Look a Lot Like… Lawsuits This Holiday Season”

Although holiday parties may be an excellent opportunity for employees to socialize outside of the confines of the office, and to reward employees for their service, they can also give rise to employer liability in the absence of appropriate precautions. Before planning your next holiday soiree, review the potential pitfalls and solutions below so that your event can be full of cheer, rather than unpleasant lawsuits.

  1. Serving Alcohol at Company Functions

holiday-bar1

While having alcohol available may make typical water cooler conversations less awkward, it can lead to liability for employers in the form of vicarious liability, sexual harassment, social host liability, and other potential issues.

Even though refraining from serving alcohol altogether is the safest option, in the event that your company plans to serve alcohol at you next function, keep the following tips in mind: Continue reading

Is Your Business in Compliance with California’s Sexual Harassment Training and Posting Requirements?

by Jennifer Grady, Esq.

sexualharassment-425x277.jpgSexual Harassment claims are on the rise and can cost employers significantly in terms of time, money, and lost productivity. According to the EEOC, over 1,700 complaints of discrimination based on sex (pregnancy or sexual harassment) were filed in California in 2014. When there is a sexual harassment claim, both sides can lose–in addition to the social, economic, and psychological effects suffered by victims of harassment, these complaints cost employers millions of dollars in legal fees and lost opportunities. Continue reading