PAGA changes bring additional LWDA involvement, but the effect remains unclear

With the passage of SB-836, a number of important changes in Private Attorneys General Act (PAGA) requirements went into effect on July 1, 2016. Though not as expansive as originally proposed, the changes do demonstrate the Labor and Workforce Development Agency’s interest in monitoring PAGA claims and their settlements.

Meal and rest breaks

Often forgotten timing rules

Dealers are continually challenged in complying with California’s meal and rest break laws. And although it is commonly known that employers must provide off-duty meal breaks of at least 30 minutes for work shifts of more than 5 hours, many dealers overlook the timing requirements of these breaks.

Vacation benefits

Watch out for accrual pitfalls

It is not uncommon for employers to implement paid vacation policies in which the employee receives a lump sum of vacation time upon reaching a certain length of service or anniversary date, rather than accruing the vacation over time. For example, the employee receives zero paid vacation time in their vacation bank during their first year of employment, but at their one-year anniversary date, they are suddenly credited with one week of paid vacation. This practice is not compliant and can expose an employer to substantial liability.

New OSHA rules may affect how employers apply their post-injury/incident drug testing policies

OSHA’s controversial new “Reasonable Reporting Procedure” rules may require a second look at the mandatory post-injury drug testing policies frequently implemented at dealerships.