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Original Equipment Suppliers: Be Careful If Expanding Into California – Employee Benefits & Compensation

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In a recent meeting with the Original Equipment Suppliers
Association (“OESA”), manufacturing human resources
representatives were surprised to learn how different California
employment laws are from the laws in the rest of the United States.
Below is a summary of what laws most surprised the attendees:

  • California has daily as well as weekly overtime rules;

  • California requires employers to pay employees premium pay for
    missed lunch and rest breaks;

  • California has very specific rules regarding itemized pay
    statements and final paychecks;

  • California is still operating under its Emergency Temporary
    COVID-19 standards;

  • California has mandatory paid sick leave;

  • California still has COVID-19 Supplemental Paid Sick

  • California has paid family leave as well as paid disability

  • California mandates harassment training for all employees;

  • California does not recognize most non-compete provisions;

  • California’s Private Attorneys General Act of 2004, Cal.
    Lab. Code § 2698 et seq. (“PAGA”),
    authorizes “any ‘aggrieved employee’ to initiate an
    action against a former employer ‘on behalf of himself or
    herself and other current or former employees to obtain civil
    penalties that previously could have been recovered only by the
    State in a Labor and Workforce Development Agency (LWDA)
    enforcement action.” See Viking River Cruises, Inc. v.
    , No. 20-1573, 2022 U.S. LEXIS 2940, *9 (June 15, 2022)
    (citing Cal. Lab. Code Ann. 2699(a)). Under PAGA, “[a]n
    employee who alleges he or she suffered a single violation is
    entitled to use that violation as a gateway to assert a potentially
    limitless number of other violations” suffered by other
    employees in a representative action. Id. at *12.

If your company is expanding its operations to California, it is
imperative that you consult a California employment lawyer to make
sure you do not get hit with expensive fines and lawsuits as a
result of California’s novel employment laws.

The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.

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