California Labor Code

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Volumes of the West's Annotated California Codes version of the Labor Code California Labor Code.jpg
Volumes of the West's Annotated California Codes version of the Labor Code

The California Labor Code, more formally known as "the Labor Code", [1] is a collection of civil law statutes for the State of California. The code is made up of statutes which govern the general obligations and rights of persons within the jurisdiction of the State of California. The stated goal of the Department of Industrial Relations is to promote and develop the welfare of the wage earners of California, to improve their working conditions and to advance their opportunities for profitable employment." [2]

Contents

Although the Labor Code is dedicated to labor laws, other codifications such as the Family Code, the Insurance Code and the Government Code also contain labor laws; parallelism exists between provisions of the Labor Code and provisions of the Government Code. [3] The Labor Code is in English. The Division of Labor Standards Enforcement maintains English and Spanish pre-recorded information phone lines that covered frequently asked topics.

California Labor Code Divisions

Division 1. Department of Industrial Relations

This Division discusses the role and parameters by which the California Department of Industrial Relations operates. One of the functions of the Department is to foster, promote, and develop the welfare of the wage earners of California, to improve their working conditions, and to advance their opportunities for profitable employment.

Division 2. Employment Regulation and Supervision

This Division regulates the compensation that employees earn, what hours they work, privileges and immunities of employees, agricultural labor relations, employee's wages and working conditions, licensing of talent agencies, public works and public agencies, unemployment relief in public works, car washes, health and sanitary conditions in employment, industrial homework, garment manufacturing, sheepherders, and private attorneys general actions.

Division 3. Employment Relations

This Division regulates the relationship between the employer and employee, their employment contract, the obligations of the employee, the inventions made by an employee, the termination of employment, and investigations of employees.

Division 4. Workers' Compensation and Insurance

Division 4 (Sections 3200 to 6002) regulates worker's compensation for employees of private employers who are injured while on the job, as well as worker's compensation insurance. The interpretation of the sections in Division 4 has been heavily litigated between employers and employees, and thus, there is a substantial body of case law interpreting this Division.

Pursuant to the procedures set forth in Part 4 of Division 4, California workers' compensation disputes are heard before the Workers Compensation Appeals Board (WCAB), which inherited the adjudicatory functions of the Industrial Accidents Commission. The IAC as originally created was far too small to hear all disputes directly, so it appointed referees who actually conducted hearings in its name, and then the IAC limited itself to hearing appeals from the decisions of those referees. Similarly, the WCAB today appoints workers' compensation judges who conduct hearings in its name in the hearing offices operated by the Division of Workers Compensation of the Department of Industrial Relations. The final orders of the workers' compensation judges by default become acts of the WCAB itself, unless a worker files a "petition for reconsideration" (in other words, appealing to the Board to reconsider the decision of the judge who acted on its behalf).

Division 4.5. Workers' Compensation and Insurance: State Employees Not Otherwise Covered

This Division regulates state employee's worker's compensation should they get injured while on the job and worker's compensation insurance.

Division 4.7. Retraining and Rehabilitation

This Division regulates the referral of injured state employees who may be benefited by rehabilitation services and retrained for other positions in public service.

Division 5. Safety and Employment

This Division regulates the conditions for a safe workplace. The Division of Occupational Safety and Health (DOSH, also known as Cal/OSHA) obtains its legal authority from this Division. DOSH's many responsibilities include inspecting nearly all elevators in California.

History

1911

A voluntary workmen's compensation program was established in 1911. [4] Also, a workmen's compensation section was added to the state constitution. [5] California's first legislation on the subject of worker safety was the Workmen's Compensation, Insurance and Safety Act of 1913. [6] [7]

1937

The Governor, Frank Merriam approved the Labor Code on April 24, 1937, and it was in effect on August 27. [8] Division V was based on the 1913 and 1917 statutes. [7] The addition of section 6508 [9] empowered the Industrial Accident Commission [7] to protect people who worked in hazardous environment. The specific safety sections on railroads, buildings, mines and ships and vessels were added. The statute now better known under a specific judicial interpretation as the De Havilland Law was recodified from the old Civil Code into the Labor Code.

1945

The Division of Industrial Safety, one of the eight divisions within the California Department of Industrial Relations, gained the administration of the "Workmen's Safety" provisions of the Labor Code. [10] Section 6604 was added in 1949 to prohibit the discharge of employees who refused to work in hazardous environment. [11] Section 6416 was added in 1963; employers who failed to provide a safe working environment and caused the death of an employee could be penalized by one year in county jail or by a fine of up to $5,000. [12]

1970

The Occupational Safety and Health Act passed by Congress in 1970 allowed states to develop their own plan. [13] California submitted its plan on September 27, 1972. [14] Later the California Occupational Safety and Health Act of 1973, Assembly Bill 150, was enacted. In 1971, the explosion of the Sylmar Tunnel raised people's attention to the effectiveness of the Labor Code. In 1972, the Tom Carrell Memorial Tunnel and Mine Safety Act was enacted. [15] It added "tunnel and Mine Safety" to Division V of the Labor Code. On October 16, 1972, a freeway bridge in Pasadena collapsed. Hearings were held. [16] Then AB 150 was introduced on January 23, 1973. It was filed as an emergency statute. [17]

1975

After Jerry Brown, a friend of Cesar Chavez, became the governor of California, three bills having different ideas on the same subjects came out: AB 1, sponsored by the United Farm Workers; SB 308, by the Teamsters; and SB 813, by Brown. [18] The product of debates and negotiations was the Alatorre-Zenovich-Dunlap-Berman Agricultural Labor Relations Act of 1975, signed into law by Brown. [19] It was California's first farm labor law. [18]

1990

Exxon Valdez oil spill happened on March 24, 1989. California Refinery and Chemical Plant Worker Safety Act of 1990 added section 7872 and 7873 to the Labor Code. On September 25, 1992, AB 2601 was signed into law. [20] It protected gays and lesbians against employment discrimination. [21] California was the seventh state to add sexual orientation to laws barring job discrimination. [22]

2003

The California Worker Adjustment and Retraining Notification Act (WARN) became effective in 2003, it protects a broader scope of workers comparing to Federal's WARN. [23] The California Legislature enacted the Private Attorneys General Act of 2004 to help workers collect penalties on behalf of the Labor and Workforce Development Agency. Wage Theft Prevention Act of 2011 (AB 469) went into effect. [24]

2013

Effective January 1, 2013, section 980 prohibits an employer from requesting the access to a job applicant's or an employee's social media except in limited circumstance. In 2014, minimum wage increased from $8.00 to $9.00 per hour. Domestic Worker Bill of Rights went into effect.

Industries

Amusement Rides

After the death of a teenage girl at the Kern County Fair in 1967, California legislated inspecting amusement rides in 1968. Although the original version of the bill included permanent amusement rides, the amended version did not. About 30 years later, in 1999, the Permanent Amusement Ride Safety Inspection Program was added to the Labor Code. [25]

Computer

Exempting an employee from overtime pay in the computer software field is not too easy according to section 515.5. The hourly pay rate requirement of it is no less than $36.00. However, trainees or unskilled people can be exempted even if they meet all the requirements. Writers can be exempted. Actors who meet the requirements for the purpose of filming can be exempted.

Entertainment

While some states do not have age restrictions on actors, California requires infants to be at least 15 days old to work as actors. [26] California Child Actor's Bill protects child performers to safeguard a portion of their earnings. [27] Due to the restriction on tobacco, [28] actors in Mad Men smoked herbal cigarettes instead.

Garment

Assembly Bill 633 passed in 1999 added section 2673.1 which "guarantees" wages for garment workers. [29] Labor Code 2676.5 requires every person registered as a garment manufacturer to display his or her name, address, and garment manufacturing registration number on the front entrance of his or her business. Section 2676.55, added in 2013, adds a civil penalty to it.

Restaurant

Although section 351 prohibits employers from collecting, taking or receiving any gratuity that is left for an employee by a patron, tip pooling issues are judged case by case. [30] However, more and more restaurants are adopting no-tipping policy. [31]

Effect

A research conducted in Los Angeles reveals that 29.7 percent of the sampled L.A. workers were paid less than minimum wage during previous work week. The overtime violation rate was 15.5 percent. The meal break violation was 81.7 percent. The deductions violation rate was 45.3 percent. Twelve percent of L.A. respondents did not complain about serious problems in the workplace because they were afraid of losing their job. [32] Study shows that half of the restaurant workers in San Francisco Chinatown received less than minimum wage. [33] Since 2009, investigators found 89 percent of more than 1,600 cases in Southern California garment industry violate Labor Laws; its immigrant workers are unaware of their rights or are reluctant to speak up. [34]

Citations

In 2013, Division of Labor Standards Enforcement Labor Commissioner cited a janitorial service provider, restaurant owners, warehouses, public work contractors, a medical supplies provider, a landscaping company, a holiday inn, a garment maker, a hotel, adult care facilities, an assisted living provider, a garment contractor, a hospital chain. Most citations are regarding wage issues in low-wage industries. [35]

The report, "State of the Division of Labor Standards Enforcement," reveals that over $3 million unpaid minimum wages assessed in 2012, more than $13 million unpaid overtime wages assessed in 2012, over $51 million in civil penalties assessed in 2012. [36]

In 2013, Cal/OSHA cited an automobile company, a chipping company, an adhesive technology company, an engineering company. Most citations were issued after the death of workers. [37]

Lawsuits

August 13, 2014 FedEx agreed to pay a $2.1 million settlement to resolve a class action lawsuit about failing to provide proper meal and rest breaks. The lead plaintiff filed the lawsuit in September 2013. He was also awarded for about $7,500 for the settlement. [38]
April 2, 2014 Walgreens reached a $29 million settlement of nine lawsuits. Walgreens was claimed that it failed to "provide its pharmacists and other employees with adequate breaks and meal periods, pay them overtime for mandatory security checks, pay all wages owed at termination, reimburse employees for business expenses, or provide itemized wage statements." [39]
May 13, 2013 Starbucks agreed to pay $3 million to resolve a class action lawsuit accusing the company of several wage and hour violations. Class Members of this class action settlement include cafe attendants, baristas and shift supervisors who worked for Starbucks' California locations between December 2, 2007 and January 2013. The suit was filed by a barista and shift supervisor in December 2008. [40]
February 5, 2013 The Ritz-Carlton Hotel Co. LLC was to pay $2 million to around 1500 former and current employees to end an overtime class action. This sue was started by a safety guard in November 2011. The attorneys would get 30 percent, or $600,000. [41]
January 11, 2012 Carwash workers won a $1 million back pay settlement from eight carwashes for overtime, minimum wage, and lack of proper compensation issues. [42]
October 12, 2011 Premier Warehousing and Impact Logistics failed to provide proper wage statements to employees. Their fine exceeded one million dollars. [43]
September 19, 2011 AutoZone agreed to establish a $4.5 million class action settlement concerning wage and labor violations, but it denied any wrongdoing. [44]

Compared to other states, California's labor law is generally employee protective.

29.5: The Governor shall annually issue a proclamation declaring April 28 as Workers' Memorial Day.

96(k): The California Labor Commissioner can file claims on behalf of workers for loss of wages as the result of demotion, suspension, or discharge from employment for lawful conduct occurring during nonworking hours away from the employer’s premises. [45]

98.6(a): An employer cannot fire an employee or in any manner discriminate, retaliate, or take any adverse action against any employee or applicant for employment because the employee or applicant engaged in any conduct delineated in this section, including the conduct described in subdivision (k) of Section 96 (see above). [46]
202: Employee who gives quitting notice 72 hours in ahead should be paid at the time of leaving. For telecommuting employees, usually employers need to arrange the mailing time of the final check or discharge the employee in person. [47]
227.3: All unused paid vacations shall be paid when an employee is terminated. Its rate is based on the final wage.
245: California becomes the second state to require paid sick leave. [48]
511: Employers may assign an alternative work schedule which extends the non-overtime daily work time from 8 hours to 10 hours, but it needs at least two-thirds of the affected employees' approval.
1171.5: Undocumented immigrants are protected by Labor Laws (enacted in 2002).
1194: Employees cannot waive right to overtime pay.
3203: Injury and Illness Prevention Program, went into effect in 1991, requires employers to establish, implement and maintain an effective Injury and Illness Prevention Program.
4658, 4660: These provisions of the Labor Code rely upon the American Medical Association Guides to the Evaluation of Permanent Impairment (5th Edition). [3] [49]

See also

Related Research Articles

Labour laws, labour code or employment laws are those that mediate the relationship between workers, employing entities, trade unions, and the government. Collective labour law relates to the tripartite relationship between employee, employer, and union.

Employment is a relationship between two parties regulating the provision of paid labour services. Usually based on a contract, one party, the employer, which might be a corporation, a not-for-profit organization, a co-operative, or any other entity, pays the other, the employee, in return for carrying out assigned work. Employees work in return for wages, which can be paid on the basis of an hourly rate, by piecework or an annual salary, depending on the type of work an employee does, the prevailing conditions of the sector and the bargaining power between the parties. Employees in some sectors may receive gratuities, bonus payments or stock options. In some types of employment, employees may receive benefits in addition to payment. Benefits may include health insurance, housing, disability insurance. Employment is typically governed by employment laws, organisation or legal contracts.

Overtime is the amount of time someone works beyond normal working hours. The term is also used for the pay received for this time. Normal hours may be determined in several ways:

<span class="mw-page-title-main">Wage</span> Payment by an employer to an employee for labour

A wage is payment made by an employer to an employee for work done in a specific period of time. Some examples of wage payments include compensatory payments such as minimum wage, prevailing wage, and yearly bonuses, and remunerative payments such as prizes and tip payouts. Wages are part of the expenses that are involved in running a business. It is an obligation to the employee regardless of the profitability of the company.

<span class="mw-page-title-main">United States labor law</span> US laws on fair pay and conditions, unions, democracy, equality and security at work

United States labor law sets the rights and duties for employees, labor unions, and employers in the US. Labor law's basic aim is to remedy the "inequality of bargaining power" between employees and employers, especially employers "organized in the corporate or other forms of ownership association". Over the 20th century, federal law created minimum social and economic rights, and encouraged state laws to go beyond the minimum to favor employees. The Fair Labor Standards Act of 1938 requires a federal minimum wage, currently $7.25 but higher in 29 states and D.C., and discourages working weeks over 40 hours through time-and-a-half overtime pay. There are no federal laws, and few state laws, requiring paid holidays or paid family leave. The Family and Medical Leave Act of 1993 creates a limited right to 12 weeks of unpaid leave in larger employers. There is no automatic right to an occupational pension beyond federally guaranteed Social Security, but the Employee Retirement Income Security Act of 1974 requires standards of prudent management and good governance if employers agree to provide pensions, health plans or other benefits. The Occupational Safety and Health Act of 1970 requires employees have a safe system of work.

<i>Canada Labour Code</i> Canadian employment legislation

The Canada Labour Code is an Act of the Parliament of Canada to consolidate certain statutes respecting labour. The objective of the Code is to facilitate production by controlling strikes & lockouts, occupational safety and health, and some employment standards.

In contract law, a non-compete clause, restrictive covenant, or covenant not to compete (CNC), is a clause under which one party agrees not to enter into or start a similar profession or trade in competition against another party. In the labor market, these agreements prevent workers from freely moving across employers, and weaken the bargaining leverage of workers.

<span class="mw-page-title-main">Labor relations</span> Study of work and workers

Labor relations or labor studies is a field of study that can have different meanings depending on the context in which it is used. In an international context, it is a subfield of labor history that studies the human relations with regard to work in its broadest sense and how this connects to questions of social inequality. It explicitly encompasses unregulated, historical, and non-Western forms of labor. Here, labor relations define "for or with whom one works and under what rules. These rules determine the type of work, type and amount of remuneration, working hours, degrees of physical and psychological strain, as well as the degree of freedom and autonomy associated with the work." More specifically in a North American and strictly modern context, labor relations is the study and practice of managing unionized employment situations. In academia, labor relations is frequently a sub-area within industrial relations, though scholars from many disciplines including economics, sociology, history, law, and political science also study labor unions and labor movements. In practice, labor relations is frequently a subarea within human resource management. Courses in labor relations typically cover labor history, labor law, union organizing, bargaining, contract administration, and important contemporary topics.

The Labor Code of the Philippines is the legal code governing employment practices and labor relations in the Philippines. It was enacted through Presidential Decree No. 442 on Labor day, May 1, 1974, by President Ferdinand Marcos in the exercise of his then extant legislative powers.

<span class="mw-page-title-main">Employment Relations Act 2000</span> Statute of the Parliament of New Zealand

The New Zealand Employment Relations Act 2000 is a statute of the Parliament of New Zealand. It was substantially amended by the Employment Relations Amendment Act 2001 and by the ERAA 2004.

The New York State Department of Labor is the department of the New York state government that enforces labor law and administers unemployment benefits.

<span class="mw-page-title-main">Fair Labor Standards Act of 1938</span> United States wage law

The Fair Labor Standards Act of 1938 29 U.S.C. § 203 (FLSA) is a United States labor law that creates the right to a minimum wage, and "time-and-a-half" overtime pay when people work over forty hours a week. It also prohibits employment of minors in "oppressive child labor". It applies to employees engaged in interstate commerce or employed by an enterprise engaged in commerce or in the production of goods for commerce, unless the employer can claim an exemption from coverage. The Act was enacted by the 75th Congress and signed into law by President Franklin D. Roosevelt in 1938.

<span class="mw-page-title-main">Indian labour law</span> Laws regulating labour in India

Indian labour law refers to law regulating labour in India. Traditionally, the Indian government at the federal and state levels has sought to ensure a high degree of protection for workers, but in practice, this differs due to the form of government and because labour is a subject in the concurrent list of the Indian Constitution. The Minimum Wages Act 1948 requires companies to pay the minimum wage set by the government alongside limiting working weeks to 40 hours. Overtime is strongly discouraged with the premium on overtime being 100% of the total wage. The Payment of Wages Act 1936 mandates the payment of wages on time on the last working day of every month via bank transfer or postal service. The Factories Act 1948 and the Shops and Establishment Act 1960 mandate 15 working days of fully paid vacation leave and 7 casual leaves each year to each employee, with an additional 7 fully paid sick days. The Maternity Benefit (Amendment) Act, 2017 gives female employees of every company the right to take 6 months' worth of fully paid maternity leave. It also provides for 6 weeks worth of paid leaves in case of miscarriage or medical termination of pregnancy. The Employees' Provident Fund Organisation and the Employees' State Insurance, governed by statutory acts provide workers with necessary social security for retirement benefits and medical and unemployment benefits respectively. Workers entitled to be covered under the Employees' State Insurance are also entitled to 90 days worth of paid medical leaves. A contract of employment can always provide for more rights than the statutory minimum set rights. The Indian parliament passed four labour codes in the 2019 and 2020 sessions. These four codes will consolidate 44 existing labour laws. They are: The Industrial Relations Code 2020, The Code on Social Security 2020, The Occupational Safety, Health and Working Conditions Code, 2020 and The Code on Wages 2019.

<span class="mw-page-title-main">Wage and Hour Division</span> Federal office in the United States

The Wage and Hour Division (WHD) of the United States Department of Labor is the federal office responsible for enforcing federal labor laws. The Division was formed with the enactment of the Fair Labor Standards Act of 1938. The Wage and Hour mission is to promote and achieve compliance with labor standards to protect and enhance the welfare of the Nation's workforce. WHD protects over 144 million workers in more than 9.8 million establishments throughout the United States and its territories. The Wage and Hour Division enforces over 13 laws, most notably the Fair Labor Standards Act and the Family Medical Leave Act. In FY18, WHD recovered $304,000,000 in back wages for over 240,000 workers and followed up FY19, with a record-breaking $322,000,000 for over 300,000 workers.

<span class="mw-page-title-main">Wage theft</span> Denial of wages or employee benefits rightfully owed to an employee

Wage theft is the failing to pay wages or provide employee benefits owed to an employee by contract or law. It can be conducted by employers in various ways, among them failing to pay overtime; violating minimum-wage laws; the misclassification of employees as independent contractors; illegal deductions in pay; forcing employees to work "off the clock", not paying annual leave or holiday entitlements, or simply not paying an employee at all.

The California Department of Industrial Relations (DIR) is a department of the government of the state of California which was initially created in 1927. The department is currently part of the Cabinet-level California Labor and Workforce Development Agency, and headquartered at the Elihu M. Harris State Office Building in Oakland.

<span class="mw-page-title-main">Wisconsin Department of Workforce Development</span> Wisconsin State Department charged with building and strengthening Wisconsins workforce.

The Wisconsin Department of Workforce Development (DWD) is an agency of the Wisconsin state government responsible for providing services to Wisconsin workers, employers, and job-seekers to meet Wisconsin's workforce needs. To effect its mission, the Department administers unemployment benefits and workers' compensation programs for the state of Wisconsin; ensures compliance with state laws on wages and discrimination; provides job resources, training, and employment assistance for job-seekers; and engages with employers to help them find and maintain adequate staffing for their businesses.

California's Assembly Bill 1066, Phase-In Overtime for Agricultural Workers Act of 2016, was authored by Assemblymember Lorena Gonzalez Fletcher and was signed by Governor Jerry Brown on September 12, 2016. This bill allows farmworkers in California to qualify for overtime pay after working 8 hours in a single day or 40 hours in a workweek. Prior to the passage of AB 1066, farmworkers were only eligible for overtime pay after working 10 hours.

Dynamex Operations W. v. Superior Court and Charles Lee, Real Party in Interest, 4 Cal.5th 903 was a landmark case handed down by the California Supreme Court on April 30, 2018. A class of drivers for a same-day delivery company, Dynamex, claimed that they were misclassified as independent contractors and thus unlawfully deprived of employment protections under California’s wage orders. Their claims raised the question of what the appropriate standard was to determine whether workers should be classified as employees or as independent contractors under California’s wage orders.

<span class="mw-page-title-main">Private Attorneys General Act</span>

The Private Attorneys General Act of 2004 (PAGA) is a California statute that authorizes aggrieved employees to bring actions for civil penalties on behalf of themselves, other employees, and the State of California against their employers for California Labor Code violations. PAGA's purpose is not to recover damages or receive restitution, but rather to allow citizens to act as private attorneys general and enforce the Labor Code. Because PAGA suits are fundamentally law enforcement actions, aggrieved employees must notify the Labor and Workforce Development Agency (LWDA)—the state agency that enforces California labor laws—of any alleged Labor Code violations. An aggrieved employee can only file a PAGA lawsuit after the LWDA elects not to pursue its own action against the employer.

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