Plaintiffs Given Broad Access to Discovery in PAGA Suits by California Supreme Court

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by Grace Lim-Ayres, Esq.

On July 13, 2017, the California Supreme Court in Williams v. Superior Court (Marshalls of CA, LLC) issued an opinion addressing the scope of discovery in representative actions brought under PAGA (Private Attorneys General Act of 2004, codified in Cal. Lab. Code § 2698 et seq.).  The Labor Code Private Attorneys General Act (PAGA) authorizes aggrieved employees to file lawsuits to recover civil penalties on behalf of themselves, other employees, and the State of California for Labor Code violations.

The Williams Court unanimously reversed the trial court’s discovery order denying plaintiff access to statewide contact information for fellow employees of other Marshalls stores.  It held that plaintiffs in PAGA actions have access to a broad scope of discovery similar to discoverable information in a class action.  The plaintiff is entitled to statewide contact information at the onset of the case to determine which cause of action to plead, and whether a broader representative action is warranted.

In what could be considered another blow to employers in an already employee-friendly state, given the relatively low threshold for pleading, employees may now bring more PAGA claims that are in fact “fishing expeditions”, which will in turn require employers to spend more time defending against them.  In addition, it is clear that statewide contact information is relevant and discoverable in a PAGA claim at the outset of the case. Continue reading

The Grady Firm Celebrates its Fifth Anniversary

DSC02492Thank you to all of our clients, referral partners, friends, and colleagues who attended The Grady Firm‘s Fifth Anniversary Party on April 6, 2017 at our firm’s Beverly Hills headquarters.  We had an amazing time catching up and making new connections!  We were humbled by our guests’ outpouring of support, and that many of them braved over two hours of traffic each way (and even a plane ride!) to be part of our special celebration. Our guests were able to make some new connections of their own, and have already started doing business together with their new connections.

During the event, we presented a slide show with the firm’s milestones, which you can view here.

Heartfelt thanks go to Good Heart Catering for graciously catering this event, ProChile Los Angeles for donating bottles of Chilean wine and Pisco, the California Employers Association for donating a $50 visa gift card and webinar ($109) value, and to Tom and Donna Grady for helping before, during, and after the event. Continue reading

How to Comply With E-Verify Requirements

712fv2lM04L.pngby Jennifer Grady, Esq.

On November 2, 2016, the U.S. Department of Justice increased monetary penalties substantially for employers who knowingly employ an unauthorized worker. Under the Immigration Reform and Control Act of 1986 (IRCA), it is unlawful for an employer to hire or continue to employ a person knowing that the person is not authorized to work in the United States. This law requires that employers verify employment eligibility of all employees by completing a Form I-9.  Failure to comply with these rules subjects employers to substantial penalties. Continue reading

New Year, New Employer Responsibilities for January 2017

Golden gateCalifornia legislators continue to create new and revise old laws.  A summary of the changes for 2017, and annual best practices recommendations, are provided below:

  1. Take note of increase to minimum wage and update in payroll/ with payroll processor
  2. Advise employees of decreased mileage reimbursement to 53.5 cents per mile
  3. Post updated federal, state, and local ordinance posters in common areas
  4. Use updated I-9 form by January 21, 2017
  5. Distribute Notice to Employee to reflect changes in wages or company polices within 7 days of the change
  6. Update Employee Handbook (annually) and conduct Performance Reviews
  7. Ensure personnel files are up to date with signed documents (including Anti-Harassment policy and Arbitration Agreement, among others)
  8. Schedule Sexual Harassment training
  1. Minimum Wage

fee-increaseAs of January 1, 2017, the minimum wage has been increased to $10.50 per hour in California for employers with 26 or more employees, and remains at $10.00 per hour for employers with 25 or fewer employees.

In addition, several cities will see an additional increase in the minimum wage.  The following is a short list of cities with more expansive minimum wages for employers of all sizes, unless otherwise noted: Continue reading

IRS Mileage Reimbursement Rates Decrease in 2017

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© Jennifer Grady

Beginning January 1, 2017, the standard mileage rates designated by the Internal Revenue Service (IRS) are the following:

  1. 53.5 cents per mile for the use of a car, van, pickup or panel truck for business miles driven (down from 54 cents in 2016).
  2. 17 cents per mile driven for medical or moving purposes (down from 19 cents in 2016).
  3. 14 cents per mile driven in service of charitable organizations (unchanged).

The standard mileage rate for business is based on an annual study of the fixed and variable costs of operating an automobile. The rate for medical and moving purposes is based on the variable costs. Continue reading

Online filing with the EDD will be mandatory for Companies with 10+ Employees in 2017

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Beginning Sunday, January 1, 2017, employers with 10 or more employees will be required to electronically submit employment tax returns, wage reports, and payroll tax deposits to the Employment Development Department (EDD). Employees with fewer than 10 employees will be subject to this requirement beginning January 1, 2018.

This mandate also applies to out-of-state employers who report payroll taxes to the EDD.

The e-file and e-pay mandate requires the following returns, reports, and payments to be electronically submitted: Continue reading

New I-9 Form Must be Used by Jan 21, 2017

I-9The United States Citizenship and Immigration Service (USCIS) announced that an updated Form I-9 has been approved. While the current form had a revision date of 03/08/2013 N and expired in March this year, is is acceptable for continued use until January 17, 2017.

On August 25, 2016, the Office of Management and Budget (OMB) approved a revised Form I-9, Employment Eligibility Verification. USCIS must publish a revised form by November 22, 2016. After January 21, 2017, all previous versions of Form I-9 will be invalid. Make sure you are always using the most current, acceptable version of the Form I-9, and ensure that the I-9 is completed by all new employees within three days of hire.

For more information on self-audits and other Form I-9 issues, see the “Handbook for Employers” https://www.uscis.gov/sites/default/files/files/form/m-274.pdf issued by USCIS. Find the latest version of the I-9 form here.

JGrady Firm-Logo-2016The Grady Firm, P.C. attorneys specialize in helping businesses grow and succeed through employment, business, and immigration law advising for clients in California.  They help perform personnel audits, train employers on employment law compliance, provide on-demand legal analysis for hiring and firing questions, and provide leadership and sexual harassment training in English and Spanish.

To learn more about ensuring your business is compliant with state and local laws, schedule a complimentary 15-minute consultation with The Grady Firm’s attorneys; call +1 (323) 450-9010; or fill out a Contact Request Form.

*This article is for informational purposes only, and does not constitute legal advice or create an attorney-client relationship. This article does not make any guarantees as to the outcome of a particular matter, as each matter has its own set of circumstances and must be evaluated individually by a licensed attorney.