Divisive Issues of California Labor Law

California Labor Law comprised of statutes and regulations that govern employers and industries with respect to the labor and working conditions of their employees.

Controversial Issues of California Labor Law

Exempt and Non-exempt Employee

The California Industrial Welfare Commission has classified employee into exempt and non-exempt employee.

The classification depends on the level of responsibility given to the exempt employee or their status as a professional. Exempt status is not related to the employee’s job title or the salary he or she received.

The following are considered exempt employees by the International Welfare Commission:

• Licensed professionals – This includes doctors, lawyer, engineers and other professional.

• Managers whose principal work is to hire, fire or train and its work is not 50% related with other employee.

• Administrator who formulate policies in the business

• Outside salesperson

A non-exempt employee is subject to all pay rules provided by the International Welfare Commission. It includes payment of overtime pay even if he is receiving a salary.

Non-compete agreement in the Employment Contract

Many companies, in order to protect their business or trade secrets, provide a non-compete agreement in their employment contract. This refers to a stipulation in the contract, which prohibit employee from engaging similar business from their previous employer.

However, unlike any other states a non-compete agreement in the contract is illegal in California. This agreement is construed to include a stipulation, which prohibit a former employee from seeking employment in other companies offering the same service with his former employer.

Wrongful Termination

Generally, in California employment is “at- will”. This means that an employer can terminate the service of the employee with out any reasons as long as it will not amount to violation of another law like the discrimination act.

Also in this law, an employee can quit their job for any reason or for no reason at all.

However, this law is not without exception. The following are the exceptions provided by law:

• Employment agreements, which provide not terminate the employee except for good cause.

• Employment agreements, for a specified period

• Discrimination in violation of California Fair Employment and Housing Act

This Act provides that even at will employee cannot be terminated if the termination is based on the prohibited characteristics of a person such as age, race, sex and other.

• An employee cannot be terminated in retaliation in asserting a right protected by the California Fair Employment and Housing Act.

• Termination in violation of public policy

• Participation in a protected activity

• Constructive discharge. An employer cannot force an employee to resign by creating an inhospitable working environment.

Who can be sued in Wrongful Termination?

An employee can only sue his or her employer with regard to wrongful termination. FEHA only allows an employee to sue the manager or supervisor after asserting a protected right.

Damages Recoverable

An employee in wrongful termination cases can recover the following:

• Lost wages and value of benefits

• Future lost wages and benefits

In this case, an employee cannot recover punitive damages and attorneys fee.

However, if the reason of the termination is a violation of the Fair Employment and Housing Act the employee can recover emotional distress damages, attorney’s fee and punitive damages.

Our labor trial lawyers are competent in handling cases brought about by any form of Labor Law violation. For free legal advice, log on to our website and seek assistance from our legal staff.