Chapter Contents Summary

Ε Chapter 1 • The Employment Relationship . . . . . . . . . . . . . . . . . . . 1

Ε Chapter 2 • Recruitment and Hiring . . . . . . . . . . . . . . . . . . . . . . . . . 73

Ε Chapter 3 • Discrimination and Harassment . . . . . . . . . . . . . . 239

Ε Chapter 4 • Disability in the Workplace . . . . . . . . . . . . . . . . . . . . 401

Ε Chapter 5 • Time Off from Work . . . . . . . . . . . . . . . . . . . . . . . . . . . 551

Ε Chapter 6 • Wages, Hours, and Working Conditions . . . . . 819

Ε Chapter 7 • Termination and Discipline . . . . . . . . . . . . . . . . . . 1239

Ε Index . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1355

Ε Appendices . Available at www.EmploymentLawPublishers.com (enter password Appendix)

Contents

Table of Cases . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . lxxxvTable of Statutes and Regulations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . lxxxviAcknowledgments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . xcHow to Use This Book . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . xci

Ε Chapter 1: The Employment Relationship 1

1 Significance of the Employment Relationship . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11.1 Legal Significance of Employment Relationship. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1

1.1.1 Overview of Employment and Tax Laws Requiring Employment Relationship. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2

1.2 Financial and Legal Obligations of Employment Relationship. . . . . . . . . . . . . . . . . . . . 21.3 Use of Independent Contractor Agreements. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3

2 Independent Contractor Relationships . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32.1 Overview of Independent Contractor Status. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32.2 Significance of Independent Contractor Misclassification. . . . . . . . . . . . . . . . . . . . . . . 4

2.2.1 Legal Consequences of Misclassification. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42.2.2 Financial Consequences of Misclassification. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

2.3 Common Misclassification Mistakes. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 72.4 Legal Tests to Determine Employment Status. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8Table 1: Summary of Legal Tests to Determine Employment Status . . . . . . . . . . . . . . . . . 9

2.5 Not All Test Factors Weighted Equally — “Primary” vs. “Secondary” Factors. . . . 112.6 Suggested Model for Audit of Independent Contractor Relationships. . . . . . . . . . . 122.7 Correction of Misclassification Mistakes. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13

3 Benefits and Risks of Independent Contractor Relationships . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 143.1 Legal and Financial Risks of Misclassification. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 143.2 Business Advantages of Using Independent Contractors. . . . . . . . . . . . . . . . . . . . . . . . 14

viii Contents: Chapter 1: The Employment Relationship

3.3 Business Risks of Using Independent Contractors. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 154 Employment Tests for Application of California

Payroll Tax Laws and Unemployment Benefits Eligibility . . . . . . . . . . . . . . . . 164.1 Summary of California Programs Funded by Payroll Tax. . . . . . . . . . . . . . . . . . . . . . . . 16

4.1.1 Employer and Employee Tax Responsibility — Who Pays for What Programs. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16

4.1.2 California Personal Income Tax (PIT)— Employer Duty to Report New Employees Within 20 Days and Withhold on Income. . . . . . . . . . . . . . . . . . . . 16

4.1.3 California Unemployment Insurance (UI) Tax Rates and Benefits. . . . . . . . . . . . . 174.1.4 California Employment Training Tax (ETT) Rates and Benefits. . . . . . . . . . . . . . . 174.1.5 California State Disability Insurance (SDI) Tax Rates and Benefits. . . . . . . . . . . . . 17

4.2 Employment Relationship Required for Application of California Payroll Tax Withholding and Deductions. . . . . . . . . . . . . . . . . . . . . . . . . . . . 18

4.3 Statutory Definitions of “Employer,” “Employee,” and “Employment” Considered to Determine Payroll Tax Obligations. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18

4.4 Overview of Tests to Determine California Payroll Tax Obligations and Unemployment Eligibility. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20

4.5 “Common Law” Test Determines California Payroll Tax Obligations and Unemployment Eligibility. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21

4.6 California “EDD Test” Used if Common Law Test Not Dispositive. . . . . . . . . . . . . . 224.7 Audit Resources Available from California

Employment Development Department. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 254.8 Employer Duty to Report Independent Contractors to State

Within 20 Days. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 255 Employment Tests for Application of Federal Employment Tax Laws . . 26

5.1 Summary of Federal Programs Funded by Employment Tax. . . . . . . . . . . . . . . . . . . . 265.1.1 Employer and Employee Tax Responsibility —

Who Pays For What Programs. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 265.1.2 Federal Employment Tax and Employer Duty to Withhold on Income. . . . . . . . . 265.1.3 Federal Social Security and Medicare Tax (FICA) Rates

and Employer Duty to Withhold on Income. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 265.1.4 Federal Unemployment Insurance Tax (FUTA) Rates and Benefits. . . . . . . . . . . . 27

5.2 Employment Relationship Required for Application of Federal Employment Tax Withholding and Deductions. . . . . . . . . . . . . . . . . . . . . . 28

5.3 Statutory Definition of “Employee” Must Be Considered to Determine Payroll Tax Obligations. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28

5.4 IRS Employment Test Determines Federal Tax Obligations. . . . . . . . . . . . . . . . . . . . . 285.5 The IRS “Safe Harbor” Defense to Misclassification. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 335.6 IRS Amnesty Program for Worker Misclassification. . . . . . . . . . . . . . . . . . . . . . . . . . . . 33

Contents: Chapter 1: The Employment Relationship ix

6 Employment Tests for Application of California Workers’ Compensation Laws . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 346.1 California Borello Test Used to Determine

Application of Workers’ Compensation Laws. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 346.1.1 Significance of Borello Test for Employers—Control Over

Manner and Details of Work Not Always Required. . . . . . . . . . . . . . . . . . . . . . . . . . . 366.2 Employment Relationship Presumed for Services

Requiring Building Contractor’s License. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 366.3 Employment Relationship Required by Statute for Certain Jobs. . . . . . . . . . . . . . . . . 37

7 Employment Tests for Application of Anti-Discrimination Laws . . . . . . . 387.1 Tests Used to Determine Employment Status

for Application of California Anti-Discrimination Statutes. . . . . . . . . . . . . . . . . . . . . 387.1.1 Independent Contractors Can Assert Harassment Claims

Under California Anti-Discrimination Statutes. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 397.1.2 Franchisor-Franchisee Relationships Covered by California

Anti-Discrimination Statutes. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 397.2 Tests to Determine Employment Status for

Application of Federal Anti-Discrimination Statutes. . . . . . . . . . . . . . . . . . . . . . . . . . . 407.2.1 “Economic Realities” and “Hybrid” Tests Determine Employment

Status for Application of Title VII (Race, Sex, National Origin, Religion, and Color Discrimination). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40

7.2.2 “Common Law” Test Determines Employment Status for Application of Age Discrimination in Employment Act (ADEA). . . . . . . . . . . . . . . 41

7.2.3 “Economic Realities” Test Determines Employment Status for Equal Pay Act (EPA). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42

7.2.4 “EEOC Test” Determines Employment Status for Anti-Discrimination Statutes Enforced by Agency (Title VII, ADA, ADEA). . . . . . . . . . . . . . . . . . . . . . . . 42

8 Employment Tests for Application of Wage and Hour Laws . . . . . . . . . . . . . . 438.1 California Employment Tests Used to Determine

Application of Wage and Hour Laws. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 438.1.1 “Common Law” Test Used for Class Certification in California

Wage and Hour Cases. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 448.1.2 California Law Presumes Existence of Employment Relationship. . . . . . . . . . . . . . 44

8.2 California Liability for “Willful” Misclassification of Independent Contractors and Deductions from Contractor Pay. . . . . . . . . . . . . . . 448.2.1 Civil Penalties Authorized for Willful Misclassification. . . . . . . . . . . . . . . . . . . . . . . 458.2.2 State Agency Duty to Report Violations

to Contractors’ State License Board. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 458.2.3 Employer Duty to Post Violations on

Website or in Conspicuous Public Location. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 458.2.4 Private Civil Actions and Agency Enforcement Authorized. . . . . . . . . . . . . . . . . . . 46

x Contents: Chapter 2: Recruitment and Hiring

8.2.5 Successor Liability Authorized for Corporations, Owners and Other Business Entities Violating Law. . . . . . . . . . . . . . . . . . . . . . . . . . . 46

8.2.6 Consultants and Other Non-Lawyers Liable for Advice on Independent Contractor Status. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46

8.3 Joint Employment and Other Relationships Covered by California Wage and Hour Laws. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 478.3.1 Employers and “Labor Contractors” Jointly Liable for Wages

and Workers’ Compensation Coverage. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 478.3.2 Contracts for Labor Unlawful If Business Knows or Should Know

Funds Insufficient to Pay Wages.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 498.3.3 Contracts for Labor or Services Presumed Lawful If Specific

Information Included in Contract . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 498.4 “Economic Realities” Test Determines Employment

Status for Application of Federal Wage and Hour Laws. . . . . . . . . . . . . . . . . . . . . . . . . 508.5 Federal Department of Labor Test Determines Employment

Status for Wage and Hour Laws Enforced by Agency. . . . . . . . . . . . . . . . . . . . . . . . . . . . 518.6 Joint Employment Covered by Federal Wage and Hour Laws. . . . . . . . . . . . . . . . . . . . 52

9 Employment Tests for Application of Family and Medical Leave Laws . . 559.1 Borello Test Determines Employment Status for California

Family and Medical Leave Law. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 559.2 “Economic Realities” Test Determines Employment Status

for Application of Federal Family and Medical Leave Act. . . . . . . . . . . . . . . . . . . . . . . 5510 Employment Tests for Application of Termination in

Violation of Public Policy Claims . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5610.1 Borello Test Determines Employment Status for Application of

Termination in Violation of Public Policy Claims. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5610.2 Borello Test Determines Employment Status for Application of

Breach of Covenant of Good Faith and Fair Dealing Claims. . . . . . . . . . . . . . . . . . . . 5611 Employment Tests for Application of Miscellaneous

State and Federal Laws . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5611.1 Tests Used to Determine Employment Status for

Application of Other Employment Laws. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5612 Other Common Relationships . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57

Endnotes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 58

Ε Chapter 2: Recruitment and Hiring 73

1 Employer Recruitment and Hiring in California . . . . . . . . . . . . . . . . . . . . . . . . . . . 731.1 Chapter Overview. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 731.2 Checklist for New Hire Documentation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 73

Contents: Chapter 2: Recruitment and Hiring xi

2 Recruitment Practices . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 752.1 Overview of California Laws Governing Recruitment. . . . . . . . . . . . . . . . . . . . . . . . . . . 75

2.1.1 “Recruitment” and “Hiring” Distinguished. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 752.2 Discrimination in Recruitment Prohibited. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 752.3 Recruitment Practices Covered by California Anti-Discrimination Laws. . . . . . . . 762.4 Theories of Discrimination Used to Establish Liability

for Recruitment Practices. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 772.4.1 Disparate Treatment Theory of Discrimination. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 782.4.2 Disparate Impact Theory of Discrimination. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 782.4.3 Recruitment Practices Creating Disparate Impact Risks. . . . . . . . . . . . . . . . . . . . . . 792.4.4 Employer Liability for Discriminatory Practices That “Deter” Applicants. . . . . . 792.4.5 Minimizing Employer Risk of “Underutilization.” . . . . . . . . . . . . . . . . . . . . . . . . . . . . 80

2.5 Specific Recruitment Practices Requiring Caution. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 812.5.1 Recruitment Using the Internet. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 812.5.2 Recruitment of Applicants with Specific Degrees or Certificates. . . . . . . . . . . . . . 832.5.3 Recruitment at Specific Schools. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 842.5.4 Recruitment by “Word-of-Mouth.” . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 842.5.5 Recruitment of Family Members (Nepotism)

and Special Rules for Spouse-Applicants. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 842.5.6 Recruitment Through Staffing Firms,

Training Programs, and Union Hiring Halls. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 852.5.7 Recruitment through Advertising in Newspapers,

Websites, and Other Electronic Media. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 862.5.8 Recruitment Conditioned on Union Avoidance Prohibited. . . . . . . . . . . . . . . . . . . . 872.5.9 Recruitment During Labor Disputes. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 872.5.10 Recruitment of Employees from Competitors. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 872.5.11 Recruitment Based on False or Exaggerated Promises. . . . . . . . . . . . . . . . . . . . . . 892.5.12 Recruitment of Sales Employees Based

on False or Exaggerated Promises. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 912.5.13 Misrepresentation About Union Affiliation Prohibited by Statute. . . . . . . . . . . 91

2.6 Avoiding Liability for Misappropriation of Confidential, Proprietary and Trade Secret Information. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 91

2.7 Avoiding Liability for Solicitation of Competitor’s Customers and Employees. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 92

2.8 Avoiding Liability for Unlawful Choice of Law and Venue Provisions. . . . . . . . . . . . 933 Collecting Applicant Information:

Job Applications and Interviews . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 943.1 Restrictions on Employer Use of Job Application Forms. . . . . . . . . . . . . . . . . . . . . . . . . 94

3.1.1 Employer May Not Require Photographs. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 943.1.2 Employer May Not Require Use of Employee’s Married Name. . . . . . . . . . . . . . . . 94

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3.1.3 Employer Duty to Collect Applicant Statistics on Race, Sex and National Origin. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 95

3.1.4 Employer Duty to Prepare “California Employer Information Report.” . . . . . . . . . 953.1.5 Employer Duty to Use Detachable Forms to Obtain Applicant Statistics. . . . . . . 953.1.6 Employer Duty to Retain Applicant Statistics for Two Years. . . . . . . . . . . . . . . . . . . 963.1.7 Employer Duty to Retain Job Applications and

Other Applicant Information for Two Years. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 963.1.8 Employer Duty to Provide Applicant with Copy of

Signed Application on Request. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 973.1.9 Employers No Longer Required to File Application Forms with State. . . . . . . . . . 973.1.10 Employer May Not Require Signature if Application Violates Law. . . . . . . . . . . . 97

3.2 Employer Duty to Avoid Legally Prohibited Questions in Application Forms and Interviews. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 97

3.3 Employer Duty to Obtain Proof of Authorization to Work in United States. . . . . 983.3.1 Employer Duty to Examine Documents and Complete I-9 Form

Within Three Days. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 983.3.2 Limited Duty to Inspect I-9 Where Employee Rehired Within Three Years. . . . . 983.3.3 Employer Duty to Retain I-9 Forms. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 993.3.4 Employers Prohibited from Unauthorized Use of Federal “E-Verify”

System — Duty to Provide Documentation to Applicants and Employees. . . . . . 993.3.5 Employers Prohibited from Requesting More or Different

Documents Than Required by Federal Law . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1003.4 Employers Prohibited from Requiring Fees

or Purchases as a Condition of Hire. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1003.4.1 Fees to Apply for Job, Purchases or Patronizing of Employer Prohibited. . . . . 1003.4.2 Cost of Required Photographs Must Be Paid by Employer. . . . . . . . . . . . . . . . . . . 1013.4.3 Required Bond for Employee Must Be Paid by Employer. . . . . . . . . . . . . . . . . . . . 1013.4.4 Mandatory Purchase of Stock or Investment

in Employer’s Business Prohibited. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1013.4.5 Unpaid “Try Outs” Benefitting Employer Prohibited. . . . . . . . . . . . . . . . . . . . . . . . 101

3.5 Employer Use of Driver’s License Information Restricted. . . . . . . . . . . . . . . . . . . . . . . 1014 Collecting Applicant Information:

Background Checks and Emloyment References . . . . . . . . . . . . . . . . . . . . . . . . . . 1024.1 Overview of Procedures for Conducting Background Checks. . . . . . . . . . . . . . . . . . 102

4.1.1 Summary of Rules Applicable to Background Checks. . . . . . . . . . . . . . . . . . . . . . . 1034.1.2 Sample Background Check Authorization and Notice Forms. . . . . . . . . . . . . . . . 105

4.2 Applicant Authorization and Notice Requirements Apply Only When Report Obtained from “Consumer Reporting Agency.” . . . . . . . . . . . . 1054.2.1 Employer-Conducted Background Checks Generally

Not Subject to Authorization and Notice Requirements. . . . . . . . . . . . . . . . . . . . 106

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4.3 Applicant Authorization and Notice Requirements Apply Only When Employer Obtains a “Consumer Report.” . . . . . . . . . . . . . . . . . . . . . . . . . 106

4.4 Employers Limited to Conducting Background Checks for “Permissible Employment Purposes” Only. . . . . . . . . . . . . . . . . . . . . . . . . 1074.4.1 Employer Use of Credit Checks Prohibited by

California Law Unless Exception Applies. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1074.4.2 Special California Notice Required Where Credit Check Used. . . . . . . . . . . . . . 108

4.5 Procedures Required for Basic Background Checks That Do Not Seek Credit Information or Involve Personal Interviews. . . . . . . . . . . . . . . . . . . . . . . 1084.5.1 Checklist for Required Authorization and Notice. . . . . . . . . . . . . . . . . . . . . . . . . . . 1084.5.2 Employer Duty to Provide Report and Summary

of Rights to Applicant Before Adverse Action Taken. . . . . . . . . . . . . . . . . . . . . . . . 1104.5.3 Employer Duty to Provide Notice to

Applicant After Adverse Action Taken. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1104.5.4 Employer Duty to Avoid Legally Prohibited

Grounds for Adverse Employment Action. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1114.5.5 Employer Must Submit Certificate of Compliance

Before Obtaining Consumer Report. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1124.5.6 Right of Applicant or Employee to Dispute Erroneous

Background Report. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1124.6 Procedures for Background Checks Seeking Credit Information. . . . . . . . . . . . . . . 113

4.6.1 Special Procedures Required for Credit Checks. . . . . . . . . . . . . . . . . . . . . . . . . . . . 1134.6.2 Checklist for Required Authorization and Notice. . . . . . . . . . . . . . . . . . . . . . . . . . . 1144.6.3 Employer Duty to Provide Credit Report and Summary

of Rights Before Adverse Action Taken. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1154.6.4 Employer Duty to Provide Notice After Adverse Action Taken. . . . . . . . . . . . . . 1154.6.5 Employer Duty to Avoid Legally Prohibited

Grounds for Adverse Employment Action. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1164.6.6 Employer Must Submit Certificate of Compliance

Before Obtaining Consumer Report. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1174.6.7 Right of Applicant or Employee to Dispute Erroneous Credit Report. . . . . . . . 117

4.7 Procedures for Background Checks That Involve Personal Interviews. . . . . . . . . 1174.7.1 Special Background Check Procedures Required

if Personal Interviews Conducted. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1184.7.2 Checklist for Required Authorization and Notice. . . . . . . . . . . . . . . . . . . . . . . . . . . 1184.7.3 Employer Must Mail Written Notice Within Three Days

of Request for Report Involving Personal Interviews. . . . . . . . . . . . . . . . . . . . . . . . 1194.7.4 Employer Must Disclose Nature and Scope

of Investigation Within Five Days of Request. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1194.7.5 Employer Must Submit Certificate of Compliance Before

Obtaining Consumer Report Involving Personal Interviews. . . . . . . . . . . . . . . . . 1194.7.6 Right of Applicant or Employee to

Dispute Erroneous Investigative Report. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 120

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4.7.7 Procedures Inapplicable to Investigations of Employee Misconduct. . . . . . . . . 1204.8 Procedures for Employer-Conducted Background Checks. . . . . . . . . . . . . . . . . . . . . 121

4.8.1 Employer-Conducted Background Checks Generally Not Subject to Authorization and Notice Requirements. . . . . . . . . . . . . . . . . . . . 121

4.8.2 Exception for Employer-Conducted Background Checks Using Public Records—Seven-Day Deadline to Produce Records. . . . . . . . . . . . . . . . . . 121

4.8.3 Employer Must Allow Applicant to Waive Right to Receive Public Record by Checking Box on Application or Other Form. . . . . . . . . . . . . . 121

4.8.4 Employer Duty to Produce Public Records if Adverse Action Taken, Even if Applicant Waives Right. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 122

4.8.5 No Employer Duty to Produce Public Records During Misconduct Investigation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 122

4.9 Special Rules for Background Checks Involving California Department of Justice (DOJ) Records. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 122

4.10 Employer Liability for Violation of Background Check Procedures. . . . . . . . . . . 1224.11 Job References — Employer-Conducted Reference Checks. . . . . . . . . . . . . . . . . . . . 123

5 Collecting Applicant Information: Specific Questions Employers Can and Cannot Ask . . . . . . . . . . . . . . . . . . . . . . . 1245.1 Questions About Criminal Background. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 124

5.1.1 Questions About Convictions Generally Permitted. . . . . . . . . . . . . . . . . . . . . . . . . 1245.1.2 Questions About Juvenile Court Proceedings Generally Prohibited. . . . . . . . . . 1255.1.3 Questions About Arrests Generally Prohibited. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1255.1.4 Questions About Arrests Permitted For Certain Jobs. . . . . . . . . . . . . . . . . . . . . . . 1255.1.5 San Francisco Significantly Restricts Criminal Conviction Inquiries. . . . . . . . . 126

5.2 Questions About Protected Status Prohibited. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1285.2.1 Exception for Legally Required Data Collection. . . . . . . . . . . . . . . . . . . . . . . . . . . . 1285.2.2 Employer Use of Social Media Requires Caution. . . . . . . . . . . . . . . . . . . . . . . . . . . 128

5.3 Questions About Age. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1295.4 Questions About National Origin and Citizenship. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1305.5 Questions About Religion. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1315.6 Questions About Race and Color. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1315.7 Questions About Sexual Orientation,

Gender Identity and Gender Expression. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1315.8 Questions About Sex, Pregnancy, Family and Breastfeeding. . . . . . . . . . . . . . . . . . . 1325.9 Questions About Prior Discipline for Sexual Harassment Permitted. . . . . . . . . . . 1325.10 Questions About Marital Status. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1335.11 Questions About Military Service. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1335.12 Questions About Physical Appearance (Height and Weight)

and Prohibition of Photographs. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 134

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5.13 Restrictions on Information Obtained in Credit Reports. . . . . . . . . . . . . . . . . . . . . 1345.14 Information About Protected Status Obtained Through

Background or Reference Checks Prohibited. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1345.15 Questions About Social Organizations and Non-Work Activities. . . . . . . . . . . . . 1355.16 Questions Regarding Emergency Contact Information. . . . . . . . . . . . . . . . . . . . . . . 1355.17 Questions Related to Physical or Mental Disability. . . . . . . . . . . . . . . . . . . . . . . . . . . . 1355.18 Questions Related to Social Media. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 135

6 Collecting Applicant Information: Medical and Disability-Related Questions Employers Can and Cannot Ask . . . . . . . . . 1366.1 General Prohibition on Medical and Disability-Related Inquiries. . . . . . . . . . . . . . 136

6.1.1 The Pre-Job Offer Stage: Medical and Disability-Related Inquiries Prohibited. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 137

6.1.2 The Post-Job Offer, Pre-employment Stage: Disability-Related Inquiries Permitted if Job-Related and Asked of All Applicants. . . . . . . . . . . . . . 137

6.1.3 The Employment Stage: Disability-Related Inquires Permitted Only if Job-Related and Consistent with Business Necessity. . . . . . . . . . . . . . . . . 138

6.2 Specific Disability-Related Inquiries at Pre-Job Offer Stage. . . . . . . . . . . . . . . . . . . . 1386.2.1 Asking if Applicant Can Perform the Job. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1396.2.2 Asking Applicant to Describe or Demonstrate How Job Can Be

Performed Permitted If All Applicants in Same Job Category Asked. . . . . . . . . 1396.2.3 Asking Single Applicant to Describe or Demonstrate How the Job

Can Be Performed Prohibited Unless Disability Apparent or Otherwise Known. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 139

6.2.4 Asking if Applicant Will Need Reasonable Accommodation in Hiring Process. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 140

6.2.5 Asking Applicant to Provide Reasonable Medical Documentation to Support Request for Hiring Accommodation. . . . . . . . . . . . . . . . . . . . . . . . . . . . 140

6.2.6 Asking if Applicant Will Need Reasonable Accommodation to Perform Job. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 140

6.2.7 Asking if Applicant Can Meet Employer’s Attendance Requirements. . . . . . . . 1406.2.8 Asking Applicant About Licensing, Certification, or Conviction Record. . . . . 1416.2.9 Asking Applicant About “Impairments.” . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1416.2.10 Asking Applicant About “Major Life Activities”

Such as Lifting, Standing, and Walking. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1416.2.11 Asking Applicant About Workers’ Compensation History. . . . . . . . . . . . . . . . . 1416.2.12 Asking Applicant About Current Illegal Use of Drugs. . . . . . . . . . . . . . . . . . . . . 1416.2.13 Asking Applicant About Lawful Drug Use. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1416.2.14 Asking Applicant About Lawful Drug Use Concurrent with Drug Testing. . 1416.2.15 Asking Applicant About Prior Illegal Drug Use. . . . . . . . . . . . . . . . . . . . . . . . . . . 1426.2.16 Asking Applicant About Drinking Habits. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 142

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6.2.17 Asking Disabled Applicants to Self-Identify to Satisfy Affirmative Action Program Requirements. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 142

6.2.18 Questions Asked by Third Parties on Behalf of Employer. . . . . . . . . . . . . . . . . . 1427 Collecting Applicant Information:

Pre-Employment Testing and Medical Examinations . . . . . . . . . . . . . . . . . . . . . 1437.1 Use of Scored Tests to Select Among Applicants. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1437.2 Restrictions on Medical Examinations. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 144

7.2.1 Exception for Voluntary On-Site Medical Examinations Under Employee Health Program. . . . . . . . . . . . . . . . . . . . . . . . . . . . 144

7.3 What is a “Medical Examination”? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1457.3.1 Physical Agility Tests Are Not Medical Examinations. . . . . . . . . . . . . . . . . . . . . . . 1457.3.2 Physical Fitness Tests May Be Medical Examinations. . . . . . . . . . . . . . . . . . . . . . . 1457.3.3 Medical Certifications to Perform Fitness or Agility Tests Are

Not Medical Examinations. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1467.3.4 Psychological Tests May Be Prohibited Medical Examinations. . . . . . . . . . . . . . 1467.3.5 Polygraph Tests May Be Prohibited Examinations. . . . . . . . . . . . . . . . . . . . . . . . . . 1477.3.6 Vision Tests Are Not Medical Examinations. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1477.3.7 Drug Tests for Current Use Are Not Medical Examinations. . . . . . . . . . . . . . . . . 1477.3.8 Alcohol Tests Are Medical Examinations. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1477.3.9 Genetic Makeup Tests Are Prohibited Examinations. . . . . . . . . . . . . . . . . . . . . . . 147

7.4 Testing Criteria That Discriminate Against Disabled Applicants Prohibited if Less Restrictive Alternative Available. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 147

7.5 Reasonable Accommodation in Testing for Disabled Applicants. . . . . . . . . . . . . . . 1487.6 Applicant Fees Generally Prohibited for Medical Examinations

and Testing. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1487.6.1 Fees Prohibited for Physicals to Obtain Driver’s License. . . . . . . . . . . . . . . . . . . . 148

7.7 Polygraph Examinations Generally Prohibited. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1497.8 Voice Stress Analysis Tests Generally Prohibited Without

Written Consent. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1497.9 Fingerprinting of Applicants Generally Permissible. . . . . . . . . . . . . . . . . . . . . . . . . . . . 1497.10 AIDS Testing Prohibited. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1497.11 Drug Testing of Job Applicants Generally Permissible. . . . . . . . . . . . . . . . . . . . . . . . . 150

7.11.1 San Francisco Significantly Restricts Applicant Drug Testing. . . . . . . . . . . . . . 1518 Hiring Practices and Selection Criteria . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 151

8.1 Overview of California Laws Regulating Hiring Practices. . . . . . . . . . . . . . . . . . . . . . 1518.1.1 Distinction Between “Hiring” and “Recruitment.” . . . . . . . . . . . . . . . . . . . . . . . . . . . 151

8.2 Discrimination In Hiring Prohibited by California Law. . . . . . . . . . . . . . . . . . . . . . . . 1528.2.1 Protection of Applicants “Perceived” To Be In Protected Group. . . . . . . . . . . . . 152

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8.2.2 Protection of Applicants “Associated” With Persons in Protected Group. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 153

8.3 Hiring Practices Covered by California Anti-Discrimination Laws. . . . . . . . . . . . . 1538.4 Theories of Discrimination Used to Establish Liability for Hiring Practices. . . . 154

8.4.1 Disparate Treatment Theory of Discrimination. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1548.4.2 Disparate Impact Theory of Discrimination. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1558.4.3 Reasonable Accommodation Theory of Discrimination. . . . . . . . . . . . . . . . . . . . . 158

8.5 Specific Hiring Practices Requiring Caution. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1598.5.1 Use of “Subjective” Hiring Criteria. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1598.5.2 Criminal Arrests and Convictions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1628.5.3 Credit History and Other Financial Information. . . . . . . . . . . . . . . . . . . . . . . . . . . . 1668.5.4 Drug and Alcohol Use. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1688.5.5 English Fluency and Accent. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1688.5.6 English-Only Requirements. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1698.5.7 Dress, Grooming, and Appearance. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1698.5.8 Height and Weight. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1718.5.9 Employment of Spouse. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1728.5.10 Military and Veteran Status. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1738.5.11 Citizenship Status. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1738.5.12 Political Affiliation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1748.5.13 Bankruptcy. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1748.5.14 Refusal to Submit to Polygraph. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1748.5.15 Refusal to Sign Unlawful Hiring Documentation. . . . . . . . . . . . . . . . . . . . . . . . . . 1748.5.16 Withdrawing the Job Offer Before Employment Begins. . . . . . . . . . . . . . . . . . . . 176

9 New Hire Documentation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1769.1 New Hire Documentation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1769.2 Employer Use of Job Offer Letters. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1779.3 Wage Notice Required for Non-Exempt Employees at Time of Hire. . . . . . . . . . . . 177

9.3.1 Notice May Be Given Electronically. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1789.3.2 Notice Must Be in Language Used to Communicate with Employee. . . . . . . . . 1789.3.3 Employer Need Not Use Government Notice Form. . . . . . . . . . . . . . . . . . . . . . . . 1789.3.4 Employer Duties When Employee Refuses to Sign Notice Form. . . . . . . . . . . . . 1799.3.5 Employee Signature Does Not Constitute Agreement

to Wage or Other Employment Terms. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1799.3.6 Employer Must Notify Employees in Writing

Within Seven Days of Changes to Information. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1799.3.7 New Hire Notice Requirements Do Not Apply

to Security Service Companies. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 179

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9.3.8 New Hire Notice Requirements Do Not Apply to Exempt, Union or Public Sector Employees. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 179

9.4 Sales Commission Agreements Must Be in Writing. . . . . . . . . . . . . . . . . . . . . . . . . . . . 18010 The Employer’s Affirmative Duty to Recruit and Hire . . . . . . . . . . . . . . . . . . 181

10.1 Affirmative Action Plans and Duty to Recruit. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18110.1.1 Contractor Duty to Identify “Underutilization” of

Minorities and Women. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18110.1.2 Contractor Duty to Establish “Placement Goals”

for Underutilized Minorities and Women. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18210.1.3 Contractor Duty to Implement “Action-Oriented”

Programs to Address Underutilization. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18210.1.4 Affirmative Action Requirements for the Disabled and Veterans. . . . . . . . . . 18310.1.5 Employer Duty to Retain Records Pertaining to Affirmative Action. . . . . . . . 183

10.2 “Affirmative Recruitment” Based on Protected Status Permissible Under California Law. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 184

10.3 Local Hire Ordinances and Duty to Hire. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18411 Protecting Trade Secrets, Inventions, and Other Confidential

Information at Time of Hire . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18511.1 California’s Definition of “Trade Secret.” . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 185

11.1.1 Examples of Employer Information Qualifying for Trade Secret Protection. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 185

11.2 Employer Checklist for Protecting Trade Secrets at Time of Hire. . . . . . . . . . . . . . 18611.2.1 “Non-Compete” Agreements Generally Unenforceable in California. . . . . . . 187

11.3 Protecting Ownership of Invention, Design or Artistic Work Created by Employee. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18811.3.1 California Law Presumes Creator Owns

Invention, Design or Artistic Work. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18811.3.2 California Law Presumes Employer Owns Invention, Design

or Artistic Work if Employee Hired to Create the Work. . . . . . . . . . . . . . . . . . 18811.3.3 Employer Use of “Invention Assignment

Agreement” Protects Employer Ownership. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18911.3.4 Invention Assignment Agreement Invalid Without

California Labor Code Section 2872 Notice. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18911.3.5 Employer May Require Employee to Disclose

All Inventions Made During Employment. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19011.4 Use of Non-Disclosure Agreements to Protect Confidential

Information and Restrict Solicitation of Customers and Employees. . . . . . . . . . . 19012 Hiring and the Use of Arbitration Agreements . . . . . . . . . . . . . . . . . . . . . . . . . . 191

12.1 Overview of Arbitration Agreements. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19112.2 Advantages and Disadvantages of Arbitration in California. . . . . . . . . . . . . . . . . . . 191

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12.2.1 Public Disclosure Required of Arbitration Award, Party Names, and Type of Dispute. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 192

12.3 Arbitration Agreements Invalid if Contractually Unenforceable. . . . . . . . . . . . . . 19312.4 Arbitration Provisions Unenforceable if

“Unconscionable” or Fundamentally Unfair. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19412.4.1 Arbitration Agreements Covering “Unwaivable”

Rights Must Satisfy Armendariz Standards. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19612.4.2 Armendariz Standards Inapplicable to Breach of

Contract and Other Private Claims. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19612.5 Exclusion of Class Action Disputes from Arbitration . . . . . . . . . . . . . . . . . . . . . . . . . 196

12.5.1 Class Action Waivers Permissible Under California Law. . . . . . . . . . . . . . . . . . 19712.5.2 Mandatory PAGA (“Representative Action”) Waivers

Prohibited By California Law. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19813 Recordkeeping Requirements Related to Recruitment and Hiring . . . . 199

13.1 California and Federal Recordkeeping Requirements. . . . . . . . . . . . . . . . . . . . . . . . . 199Endnotes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 201

Ε Chapter 3: Discrimination and Harassment 239

1 Overview of California’s Anti-Discrimination and Anti-Harassment Laws. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2391.1 Chapter Overview. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 239

1.1.1 Basic Model for Assessing the Validity of Discrimination Claims. . . . . . . . . . . . 2401.2 Bases of Discrimination Covered by California’s

Fair Employment and Housing Act (FEHA). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2401.2.1 Basic Proof Requirements for Discrimination and Harassment

Claims Under California’s Fair Employment and Housing Act. . . . . . . . . . . . . . . 2411.2.2 Comparison with Federal Anti-Discrimination Laws. . . . . . . . . . . . . . . . . . . . . . . 2411.2.3 California’s Constitutional Prohibition on

Discrimination and Harassment. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2421.3 Employers and Other Entities Covered by California’s

Fair Employment and Housing Act (FEMH). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2421.3.1 Employers with Five or More Employees Liable for Discrimination. . . . . . . . . . 2421.3.2 Employers with One Employee or Contractor Liable for Harassment. . . . . . . . 2421.3.3 Other Entities and Persons Subject to Liability. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 242

1.4 Individuals Protected by California’s Fair Employment and Housing Act (FEHA). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2431.4.1 Employees Protected. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2431.4.2 Unpaid Interns, Volunteers and Contractors Protected. . . . . . . . . . . . . . . . . . . . . 2431.4.3 Employees Outside California May Not Be Protected. . . . . . . . . . . . . . . . . . . . . . . 244

1.5 Coverage of Individuals Not in Protected Group. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 244

xx Contents: Chapter 3: Discrimination and Harassment

1.5.1 Protection of Persons “Perceived” to be in Protected Group. . . . . . . . . . . . . . . . . 2441.5.2 Protection of Persons “Associated” with Members of Protected Group. . . . . . . 2441.5.3 Protection of Persons Sympathizing with

Groups Asserting Anti-Discrimination Rights. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2451.5.4 Comparison with Federal Anti-Discrimination Laws. . . . . . . . . . . . . . . . . . . . . . . 245

1.6 Employment Practices and Other Discrimination Issues Prohibited by California Fair Employment and Housing Act (FEHA). . . . . . . . . . 2461.6.1 Discriminatory “Terms and Conditions” of

Employment Must Impair Job Performance. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2471.7 Theories of Discrimination Used to Establish Liability Under

California’s Fair Employment and Housing Act (FEHA). . . . . . . . . . . . . . . . . . . . . . . 2471.8 California’s “Disparate Treatment” Theory of Discrimination. . . . . . . . . . . . . . . . . 247

1.8.1 The Employee’s Burden to Establish Prima Facie Case of Discrimination. . . . 2481.8.2 The Employer’s Burden to Show Legitimate,

Non-discriminatory Reason for Conduct. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2481.8.3 The Employee’s Burden to Prove “Pretext.” . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2481.8.4 California’s “Mixed-Motive” Rule. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 249

1.9 California’s “Pattern or Practice” Theory of Discrimination. . . . . . . . . . . . . . . . . . . 2501.9.1 Employee’s Burden to Establish Prima Facie

Case of Pattern or Practice Discrimination. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2501.9.2 Employer’s Burden to Discredit Employee’s Proof

and Provide Legitimate Business Reason for Conduct. . . . . . . . . . . . . . . . . . . . . . 2501.10 California’s “Disparate Impact” Theory of Discrimination. . . . . . . . . . . . . . . . . . . . 251

1.10.1 Employees’ Burden to Establish Prima Facie Case of Disparate Impact. . . . 2511.10.2 The Employer’s Business Necessity Defense. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2511.10.3 The Employee’s Burden to Prove Less Restrictive Alternative. . . . . . . . . . . . . . 252

1.11 California’s “Reasonable Accommodation” Theory of Discrimination. . . . . . . . 2521.12 California’s Quid Pro Quo and Hostile Work

Environment Theories of Harassment. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2521.13 Employer Defenses to Discrimination Claims. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 253

1.13.1 The Bona fide Occupational Qualification (bfoq) Defense to Discrimination. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 253

1.13.2 The “business Necessity” Defense to Disparate Impact Discrimination. . . . 2531.13.3 Job-Relatedness of Selection Procedures as Defense to Discrimination. . . . 2541.13.4 Security Regulations as Defense to Discrimination. . . . . . . . . . . . . . . . . . . . . . . 2541.13.5 Affirmative Action Plan as Defense to Discrimination. . . . . . . . . . . . . . . . . . . . 2541.13.6 Compliance with State or Federal Law as Defense to Discrimination. . . . . . 254

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2 Persons Protected by California’s Anti-Discrimination Laws . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2542.1 Job Applicants Protected by California’s Fair

Employment and Housing Act (FEHA). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2542.1.1 Coverage of “Deterred” Applicants. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 255

2.2 Employees Protected by California’s Fair Employment and Housing Act (FEHA). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 255

2.3 Individuals Paid by Temp Agencies Protected. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2552.4 Family Members and Persons Employed by Non-Profit

Rehabilitation Facilities and Sheltered Workshops Not Protected. . . . . . . . . . . . . 2562.5 Independent Contractors in Sexual Harassment Cases Protected. . . . . . . . . . . . . 2562.6 Unpaid Interns, Volunteers, and Contractors May Be

Protected Regardless of Employment Status. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2563 Businesses and Individuals Subject to Liability

Under California’s Anti-Discrimination Laws . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2573.1 Overview of Businesses and Individuals Covered

by California Anti-Discrimination Laws. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2573.2 Individuals Liable as “Agent” of Employer. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2583.3 Employers Liable for Discrimination and Harassment

by Managers, Supervisors and Others (Respondeat Superior). . . . . . . . . . . . . . . . 2583.4 Non-Management Coworkers Liable for Harassment. . . . . . . . . . . . . . . . . . . . . . . . . 2593.5 Parent Company May Be Liable for Conduct of Subsidiary. . . . . . . . . . . . . . . . . . . 2593.6 Employment Agencies Subject to Liability. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2593.7 Labor Organizations Subject to Liability. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2603.8 Unpaid Internship, Work Experience, and

Apprenticeship Programs Subject to Liability. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2613.9 Religious Organizations and Religious Health Care

Facilities Generally Exempt From Liability. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2613.10 Franchisors May Be Liable for Conduct of Franchisees. . . . . . . . . . . . . . . . . . . . . . . 2623.11 Employer Identity Presumed From W-2. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 262

4 Specific Employment Practices Prohibited by California’s Anti-Discrimination Laws . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2624.1 Employment Practices Based on Race and Color. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 262

4.1.1 Personnel Actions Based on Race-Related Medical Conditions Prohibited. . . 2634.1.2 Personnel Actions Based on Grooming, Dress,

and Cultural Identification Prohibited. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2634.1.3 Race and Ethnicity-Based Methods For Setting Wages Prohibited. . . . . . . . . . . . 2644.1.4 Distinction Between Race, National Origin, and Ancestry. . . . . . . . . . . . . . . . . . . 264

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4.1.5 Discrimination Based on “Perceived” Protected Status or “Association” with Person in Protected Group Prohibited. . . . . . . . . . . . . . . . 264

4.2 Employment Practices Based on Sex. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2644.2.1 Sex-Based Methods for Setting Wages Prohibited. . . . . . . . . . . . . . . . . . . . . . . . . . 2664.2.2 Fringe Benefit Practices Based on Sex, Gender Identity or

Gender Expression Prohibited. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2674.2.3 Sex-Based Seniority, Job Classification, and Promotion

Practices Prohibited. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2684.2.4 Employer Duty to Protect Employees from Sex-Based

Risk of Harm to Health, Safety, and Reproductive Functions. . . . . . . . . . . . . . . . 2694.2.5 Sex-Based Disparities in Clerical Assistance,

Office Space, and Other Support Services Prohibited. . . . . . . . . . . . . . . . . . . . . . . 2704.2.6 Reliance on Sex-Based “Stereotypes” to Make

Personnel Decisions Prohibited. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2704.2.7 Sex-Based Personnel Actions Based on Customer,

Client or Coworker Preference Prohibited. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2714.2.8 Sex-Based Grooming, Physical Appearance,

and Dress Standards Generally Permissible. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2714.2.9 Employer Dress Codes Prohibiting Pants Based on Sex Prohibited. . . . . . . . . . 2724.2.10 Dress Standards Restricting Gender

Identity or Gender Expression Prohibited. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2724.2.11 Sex-Based Height and Weight Requirements

Causing Adverse Impact Prohibited. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2734.2.12 Employer Physical Agility and Strength Tests May Be Prohibited. . . . . . . . . . 2744.2.13 Employer Defense to Discriminatory Employment Practices:

The Bona fide Occupational Qualification (BFOQ). . . . . . . . . . . . . . . . . . . . . . . 2744.2.14 Employer Bona fide Occupational Qualification

(BFOQ) Defense Narrowly Applied. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2744.2.15 Successful Bona fide Occupational Qualification (bfoq) Defenses

Based on Privacy, Role Modeling, Authenticity, and Preservation of Core Function or Service of Business. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 276

4.3 Employment Practices Based on Marital Status. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2774.3.1 Personnel Actions Based on Employment of Spouse Permitted

for Reasons of Supervision, Morale, Safety, or Security. . . . . . . . . . . . . . . . . . . . . . 2774.3.2 Employer Duty to Accommodate Co-Workers Who Marry. . . . . . . . . . . . . . . . . 2784.3.3 Employer Denial of Health Insurance and Other Benefits to

Employee’s Spouse, Domestic Partner or Dependents Prohibited. . . . . . . . . . . . 2784.3.4 Employer Discipline or Termination Based on Unavailability

for Travel, Entertainment or After Hours Duties Prohibited. . . . . . . . . . . . . . . . . 2784.3.5 Employer Requirement that Married Woman

Use Husband’s Name Prohibited. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2784.4 Employment Practices Based on National Origin. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 279

4.4.1 Restrictions on Employee’s Use of Foreign Language Permitted in Limited Circumstances. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 279

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4.4.2 Language Fluency and Accent Requirements Permitted in Limited Circumstances. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 281

4.4.3 Prohibited Employer Height and Weight Requirements. . . . . . . . . . . . . . . . . . . . . 2814.4.4 Employer Denial of Employment Opportunities

Based on Foreign Education or Training Prohibited. . . . . . . . . . . . . . . . . . . . . . . . 2824.4.5 Prohibited Employer Citizenship Requirements. . . . . . . . . . . . . . . . . . . . . . . . . . . . 2824.4.6 Employer Denial of Legal Rights and Remedies

Based on Immigration Status Prohibited. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2834.4.7 Employers Prohibited from Unauthorized Use

of Federal “E-Verify” System. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2834.4.8 Personnel Actions Based on National Security Regulations Permitted. . . . . . . 2844.4.9 Personnel Actions Based on Bona fide Occupational

Qualification (BFOQ) Permitted. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2844.4.10 Discrimination Based on Possession of Special Driver’s License

Issued to Undocumented Persons Prohibited. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2844.5 Employment Practices Based on Religion or Religious Practices. . . . . . . . . . . . . . 285

4.5.1 Employer Refusal to Reasonably Accommodate Religious Beliefs Absent Undue Hardship Prohibited. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 286

4.5.2 Employer Duty to Accommodate Religious Holidays Absent Showing of Undue Hardship. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 289

4.5.3 Employer Refusal to Modify Testing Schedules Absent Undue Hardship Prohibited. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 290

4.5.4 Prohibited Mandatory Payment of Union Dues. . . . . . . . . . . . . . . . . . . . . . . . . . . . 2904.5.5 Prohibited Employer Dress and Grooming Standards. . . . . . . . . . . . . . . . . . . . . . . 2914.5.6 Defense to Religious Discrimination — Religious Organization

Exemption Under California Fair Employment and Housing Act (FEHA). . . . 2914.6 Employment Practices Based on “Gender Identity,”

“Gender Expression,” or Employee “Transitioning” Prohibited. . . . . . . . . . . . . . . 2924.6.1 Employer Dress Standards — Unlawful Employment

Practices Based on Gender Identity or Gender Expression. . . . . . . . . . . . . . . . . . 2934.6.2 Employer Duty to Abide by Employee-Preferred Gender,

Name or Pronoun . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2934.6.3 Employer Duty to Permit Bathroom Access Corresponding to

Gender Identity or Gender Expression Regardless of Employee Sex at Birth. . 2934.6.4 Employer Duty to Use Gender-Neutral Signage for

“Single-Occupancy” Bathrooms and Other Facilities. . . . . . . . . . . . . . . . . . . . . . . . 2934.7 Employment Practices Based on Age. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 294

4.7.1 Employer Hiring, Promotion, and Work Assignments Based on Age Prohibited. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 294

4.7.2 Prohibited Employer Physical and Mental Examinations. . . . . . . . . . . . . . . . . . . . 2944.7.3 Mandatory Retirement Ages Prohibited. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2944.7.4 Employer Duty to Follow California Notice Requirements

to Extend Benefit Plan Beyond “Normal Retirement Date.” . . . . . . . . . . . . . . . . . 295

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4.7.5 Prohibited Use of High Salary as Basis for Termination in Reduction in Force. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 296

4.7.6 Entertainment Employment Services Prohibited From Publishing Age or Date of Birth Online at Subscriber’s Request. . . . . . . . . . . . . . . . . . . . . . . . . 296

4.7.7 Employer Defenses to Age Discrimination Claims. . . . . . . . . . . . . . . . . . . . . . . . . . 2964.8 Employment Practices Based on Protected Medical Conditions. . . . . . . . . . . . . . 2974.9 Employment Practices Based on Genetic Information. . . . . . . . . . . . . . . . . . . . . . . . 297

4.9.1 Comparison with Federal Law. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2974.10 Employment Practices Based on Physical and Mental Disability Prohibited. 2984.11 Employment Practices Based on Military or Veteran Status Prohibited. . . . . . . 298

5 California’s Anti-Retaliation Laws . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2995.1 Overview of California’s Anti-Retaliation Laws. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 299

5.1.1 Comparison with Federal Law. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2995.2 No Personal Liability for Supervisors and Coworkers. . . . . . . . . . . . . . . . . . . . . . . . . 300

5.2.1 Comparison with Federal Law. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3005.3 Examples of Retaliation for “Opposing” Discriminatory Conduct. . . . . . . . . . . . . 300

5.3.1 Conduct Opposed by Employee Need Not Be Unlawful. . . . . . . . . . . . . . . . . . . . . 3005.3.2 Employee Opposition Must Be Sufficient to Put Employer on Notice of

Discriminatory Conduct. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3015.4 Examples of Retaliation for “Participation” in Discrimination Proceedings. . . . 3015.5 Employee Must Be Subjected to Adverse Employment Action. . . . . . . . . . . . . . . . 302

5.5.1 Adverse Employment Action Must Be Material and Not Trivial. . . . . . . . . . . . . 3025.5.2 Comparison with Federal Standard. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 303

5.6 Employee Must Prove Protected Activity “Caused” Adverse Employment Action. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3035.6.1 Close Time Gap Between Protected Activity and

Adverse Action Can Create Inference of Retaliation. . . . . . . . . . . . . . . . . . . . . . . . 3045.7 Retaliatory Immigration Practices May Result in Loss of

Business License and Attorney Disbarment. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3046 California’s Anti-Harassment Laws . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 305

6.1 Overview of California’s Anti-Harassment Laws. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3056.1.1 Harassment Based on “Sex” Includes Sexual Harassment,

Harassment Based on Gender Identity and Gender Expression, and Harassment Based on Pregnancy, Childbirth, Breastfeeding, or Related Medical Conditions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 305

6.1.2 Loss of Tangible Job Benefits Not Required for Harassment Claims. . . . . . . . . 3066.1.3 California Provides Greater Protections to

Employees than Federal Harassment Standard. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 306

Contents: Chapter 3: Discrimination and Harassment xxv

6.1.4 California’s Prohibition on Harassment and Violence in Professional Services and Other Business Relationships. . . . . . . . . . . . . . . . . . 306

6.2 Businesses Entities and Persons Liable for Harassment Under California Anti-Harassment Laws. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 307 6.2.1 Employers of One Employee Subject to Liability. . . . . . . . . . . . . . . . . . . . . . . . . . . . 3076.2.2 Businesses with One Independent Contractor Subject to Liability. . . . . . . . . . . 3076.2.3 Managers, Supervisors and Other “Agents” of Employer

May Be Personally Liable for Harassment. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3076.2.4 Non-Management Coworkers Subject to Personal Liability. . . . . . . . . . . . . . . . . 3086.2.5 State of California, Cities, and Political Subdivisions Subject to Liability. . . . . 3086.2.6 Certain Religious Entities Not Subject to Liability. . . . . . . . . . . . . . . . . . . . . . . . . . 308

6.3 Individuals Protected by California’s Anti-Harassment Laws. . . . . . . . . . . . . . . . . . 3096.3.1 Job Applicants Protected from Harassment. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3096.3.2 Employees Protected from Harassment. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3096.3.3 Independent Contractors Protected from Harassment. . . . . . . . . . . . . . . . . . . . . . 3096.3.4 Volunteers and Unpaid Interns Protected From Harassment. . . . . . . . . . . . . . . . . 309

6.4 Overview of Employee Proof Requirements for Harassment Claims Under California Law. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 310

6.5 Employee Proof Requirements for Quid Pro Quo Harassment Under California Law. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3106.5.1 Examples of Quid Pro Quo Sexual Harassment. . . . . . . . . . . . . . . . . . . . . . . . . . . . 3116.5.2 Employer Strictly Liable for Supervisor’s Quid Pro Quo Harassment. . . . . . . . 3116.5.3 Employers Not Strictly Liable for Supervisor Harassment

in Private Relationships Outside of Work. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3116.5.4 Unwelcome Conduct Required for Quid Pro Quo Harassment. . . . . . . . . . . . . . 3126.5.5 “Tangible Employment Action” Required for Quid Pro Quo Harassment. . . . 3126.5.6 Same Sex Quid Pro Quo Harassment Can Be Basis for Liability. . . . . . . . . . . . . 313

6.5.7 “Sexual Desire” Not Required to Prove Quid Pro Quo Harassment. . . . . . . . . . . . 3136.6 Employee Proof Required for “Hostile Work

Environment” Harassment Under California Law. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3136.6.1 Conduct Must Be “Sexual” in Nature — Proof of “Sexual Desire”

Not Required. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3136.6.2 No Requirement of “Tangible Employment Action” to

Prove Hostile Work Environment. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3146.6.3 Conduct Must Be “Severe or Pervasive” to

Prove Hostile Work Environment. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3156.6.4 “Pervasive” Conduct Determined by Frequency of Activity. . . . . . . . . . . . . . . . . . 3156.6.5 “Severe” Conduct Determined by Factors Such as Threats,

Humiliation, and Management Level of Accused. . . . . . . . . . . . . . . . . . . . . . . . . . . 3166.6.6 Severe or Pervasive Conduct Determined by

“Reasonable Complaining Party” Test. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 316

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6.6.7 Conduct Not Directed at Complainant Can Create Hostile Work Environment. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 317

6.6.8 Sexual Favoritism (“Paramour Preference”) Can Create Hostile Work Environment. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 318

6.6.9 Conduct Off Work Hours or Off Work Premises Can Create Hostile Work Environment. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 318

6.6.10 Same Sex Harassment Can Create Hostile Work Environment. . . . . . . . . . . . 3196.6.11 Liability for Coworker Harassment Requires

Employer Knowledge and Failure to Act. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3196.7 Employer Liability for Harassment by Supervisors, Coworkers,

and Non-Employees. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3196.7.1 Employer Liability for Harassment by Supervisors. . . . . . . . . . . . . . . . . . . . . . . . . . 3196.7.2 Employer Liability for Coworker Harassment Requires

Knowledge of Conduct and Failure to Act. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3206.7.3 Employer Liability for Sexual Harassment by Non-Employees

Such as Vendors, Customers, and Members of General Public. . . . . . . . . . . . . . 3216.8 Employer Liability for Non-Sexual Forms

of Harassment Under California Law. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3216.9 California’s Duty to Prevent Harassment from Occurring. . . . . . . . . . . . . . . . . . . . . 3226.10 Employer Duty to Implement Sexual Harassment

Policy or Distribute Required Pamphlet. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3226.10.1 Comparison with Federal Standard. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 323

6.11 Defenses to Harassment Claims Under California Law. . . . . . . . . . . . . . . . . . . . . . . 3246.11.1 California’s “Avoidable Consequences” Defense. . . . . . . . . . . . . . . . . . . . . . . . . . 3256.11.2 California’s Prompt Remedial Action Defense. . . . . . . . . . . . . . . . . . . . . . . . . . . . 3266.11.3 Comparison to Federal Defenses. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 326

6.12 Liability of Employer for Disciplinary Action Caused by False Complaint. . . . 3267 Damages for Violations of California’s Anti-Discrimination

and Anti-Harassment Laws . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3277.1 Damages Available for Violations of California

Fair Employment and Housing Act (FEHA). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3277.1.1 Comparison with Federal Law. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 327

8 California’s Legal Duty to Prevent Discrimination and Harasment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3278.1 California’s Duty to Prevent and Correct Discrimination and Harassment. . . 327

8.1.1 Comparison with Federal Title VII Standard. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3289 California’s Legal Duty to Disseminate Written

Discrimination, Harassment, and Retaliation Prevention Policy and Anti-Harassment Pamphlet . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3289.1 Employer Duty to Disseminate Written Prevention

Policy that Meets Requirements of California Law. . . . . . . . . . . . . . . . . . . . . . . . . . . . 328

Contents: Chapter 3: Discrimination and Harassment xxvii

9.2 Employer Duty to Distribute State Anti-Harassment Pamphlet. . . . . . . . . . . . . . 3299.3 Duty of Department of Fair Employment and

Housing (DFEH) to Provide Copies of Pamphlet. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3309.4 California Employers with Effective Harassment

Policies Exempt from Pamphlet Law. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3309.5 Employer Liability for Failure to Distribute Required Information. . . . . . . . . . . 330

10 California’s Legal Duty to Train Supervisory Employees . . . . . . . . . . . . . . . 33110.1 Overview of California’s Supervisor Training Requirement. . . . . . . . . . . . . . . . . . . 331

10.1.1 State Employee 80 Hour Training Requirement May Include Harassment Training. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 332

10.2 “Employers” Subject to California Training Law Requirement. . . . . . . . . . . . . . . 33210.2.1 Special Farm Labor Contractor Harassment Training

and Examination Requirements. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33210.3 Individuals Counted Toward 50 Employee Requirement. . . . . . . . . . . . . . . . . . . . . 333

10.3.1 Independent Contractors Counted Toward Requirement. . . . . . . . . . . . . . . . . 33310.3.2 Requirement of 50 Employees Measured Using 20 Week Period. . . . . . . . . . . 33310.3.3 Individuals Counted May Work or Reside Outside California. . . . . . . . . . . . . 333

10.4 “Supervisory Employees” Who Must Be Trained. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33310.4.1 Supervisors Located Outside of California Exempt from Training Law. . . . 334

10.5 Frequency, Timing, and Duration of Training. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33410.5.1 Tracking Methods Required to Determine Compliance. . . . . . . . . . . . . . . . . . . 33410.5.2 Timing of Initial Training for Newly Hired or Promoted Supervisors. . . . . . 33410.5.3 Timing of Initial Training for Employers

Increasing Workforce to 50 Employees. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33410.5.4 Minimum Duration of Training Per Session. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 334

10.6 Exemption Available for Supervisors Trained by Prior Employer. . . . . . . . . . . . . 33510.6.1 Exemption Available to Employers Increasing

Workforce to 50 Employees. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33510.7 Persons Authorized to Conduct Training. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 335

10.7.1 Education, Experience, and Licensing Required to Conduct Training. . . . . . 33610.8 “Classroom” or Other “Effective Interactive Training” Required. . . . . . . . . . . . . 33610.9 Required Content of Training. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 337

10.9.1 Training Must Include Distribution and Acknowledgement of Anti-Harassment Policy. . . . . . . . . . . . . . . . . . . . . . . . . . . 338

10.9.2 Training Must Include Practical Examples and Other Specified Instruction Methods. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 339

10.10 Employers May Be Required to Exceed Training Minimum. . . . . . . . . . . . . . . . . 33910.11 Required Two-Year Recordkeeping. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34010.12 Employer Liability for Failure to Train. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 340

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10.12.1 Department of Fair Employment and Housing Empowered to Issue Compliance Orders. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 340

11 California’s Legal Duty to Investigate Complaints of Discrimination and Harassment . . . . . . . . . . . . . . . . . . . . . . . . . . . 34111.1 California Duty to Conduct Workplace Investigations. . . . . . . . . . . . . . . . . . . . . . . . 341

11.1.1 No Liability Based on Inadequate Investigation Alone. . . . . . . . . . . . . . . . . . . . 34111.1.2 Comparison with Federal Prevention Standard. . . . . . . . . . . . . . . . . . . . . . . . . . . 341

11.2 Workplace Investigation as Defense to Employee Claims. . . . . . . . . . . . . . . . . . . . 34211.2.1 Workplace Investigation as Defense to Wrongful Termination Claims. . . . . 34211.2.2 Workplace Investigation as Defense to

Harassment and Discrimination Claims. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34211.2.3 Workplace Investigation as Defense to Punitive Damage Claims. . . . . . . . . . 343

11.3 Characteristics of Defensible Workplace Investigations. . . . . . . . . . . . . . . . . . . . . . 34311.4 Employer Duty to Commence Investigation Promptly. . . . . . . . . . . . . . . . . . . . . . . 34511.5 Employer Duty to Protect Victim While Investigation Pending. . . . . . . . . . . . . . 34511.6 Selection of Investigator. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 346

11.6.1 California Legal Restrictions on Who May Conduct Workplace Investigations. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 346

11.6.2 Legal Consequences of Selecting the Wrong Investigator. . . . . . . . . . . . . . . . . 34611.6.3 Factors to Consider When Selecting Investigator. . . . . . . . . . . . . . . . . . . . . . . . . 347

11.7 Structuring the Investigator’s Assignment. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34811.8 Interviews of Complaining Party, Accused, and Third-Party Witnesses. . . . . . 348

11.8.1 Interview of Complaining Party. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34911.8.2 Interview of Accused. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34911.8.3 No Employer Duty to Provide Representative for

Accused in Non-Union Setting. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35011.8.4 Interview of Third-Party Witnesses. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35011.8.5 Caution Required When Prohibiting Witnesses

From Discussing Investigation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35111.8.6 Restrictions on Use of Social Media. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 351

11.9 Factors to Consider in Making Credibility Determinations. . . . . . . . . . . . . . . . . . 35211.10 Duty to Make Findings and Inform Parties of Results. . . . . . . . . . . . . . . . . . . . . . . 353

11.10.1 Use of Attorney Client Privilege to Shield Investigation from Disclosure. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 354

11.11 Preparation of Investigation Report. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35611.11.1 Use of Attorney Work Product Doctrine to Shield

Report and Other Communications from Disclosure. . . . . . . . . . . . . . . . . . . 35711.11.2 Impact of California Investigative Consumer Reporting

Agencies Act (ICRAA) and Federal Fair Credit Reporting Act (FCRA) on Disclosure of Investigation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 357

Contents: Chapter 4: Disability in the Workplace xxix

11.11.3 Employer Duty to Disclose Investigation Summary to Accused. . . . . . . . . 35811.11.4 Employer Restrictions on Disclosure of

Investigation Report to Third Parties. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35811.12 Employer Duty to Notify Parties of Investigation Results. . . . . . . . . . . . . . . . . . . 35911.13 Employer Duty to Take Corrective Action. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35911.14 Limitation on Discipline for False Complaints,

False Testimony, or Refusal to Cooperate. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36111.15 Employer Duty to Avoid Defamation When Conducting Investigation. . . . . . . 361

11.15.1 Qualified Defamation Privilege Available for Statements Made During Investigation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 362

12 Recordkeeping and Posting Requirements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36212.1 Anti-Discrimination Law Postings Required. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36212.2 Recordkeeping Required by California and

Federal Anti-Discrimination Laws. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36312.2.1 Two-Year California Recordkeeping Requirement for Certain

Employment and Wage Information. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36312.2.2 One-Year Federal Recordkeeping Requirement for Records Pertaining t

o Personnel Actions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36412.2.3 Three-Year Recordkeeping Requirement for Payroll, Benefits and

Personnel Records. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 364Endnotes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 366

Ε Chapter 4: Disability in the Workplace 401

1 California’s Disability Laws . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4011.1 Chapter Overview. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4011.2 California’s Disability Discrimination and Reasonable

Accommodation Laws. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4021.3 Employer Duties of Non-Discrimination and Reasonable

Accommodation Compared. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4031.4 California Provides Greater Protections for Disabled Individuals

than Federal Law. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4031.4.1 Intent of Congress to Expand Federal Protections to Disabled

in 2008 Amendments to Americans with Disabilities Act. . . . . . . . . . . . . . . . . . . 4041.5 Employer Duty to Follow Law Offering Greater Protection

to Disabled When California and Federal Laws Conflict. . . . . . . . . . . . . . . . . . . . . . 4041.6 California Relies on Federal Law to Interpret

Analogous Provisions of State Disability Law. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4051.7 Disability Issues Related to Applicants. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 405

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2 Employers and Employees Covered by California’s Disability Laws . . . 4052.1 “Employers” Covered by California Disability Laws. . . . . . . . . . . . . . . . . . . . . . . . . . . 405

2.1.1 Comparison with Federal Disability Law. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4052.2 “Employees” Covered by California Disability Laws. . . . . . . . . . . . . . . . . . . . . . . . . . . 406

2.2.1 Comparison with Federal Disability Law. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4062.3 Staffing Firm Relationships. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 406

3 California’s Broad Definition of “Disability” . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4073.1 Overview of California’s Definition of “Disability.” . . . . . . . . . . . . . . . . . . . . . . . . . . . . 407

3.1.1 Employee Has Burden of Proof to Establish “Disability.” . . . . . . . . . . . . . . . . . . . . 4083.1.2 Employer May Use Medical Evidence to Rebut Claim of Disability. . . . . . . . . . . 4083.1.3 Comparison to Federal Definition of “Disability.” . . . . . . . . . . . . . . . . . . . . . . . . . . 408

3.2 Employee Must Have a Physical or Mental “Impairment.” . . . . . . . . . . . . . . . . . . . . 4093.2.1 Additional Resources for Mental Impairments. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 410

3.3 Impairment Need Only “Limit” a Major Life Activity to Qualify as Disability. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4103.3.1 Comparison to “Substantially Limited” Requirement of Federal Law. . . . . . . . . 4113.3.2 Factors Considered to Determine Whether Limitation is “Substantial.” . . . . . . 4113.3.3 “Performance” of Major Life Activity Considered

in Determining Whether Limitation is Substantial. . . . . . . . . . . . . . . . . . . . . . . . . 4123.3.4 Impairments Presumed to be Disabilities

Because They Are Substantially Limiting. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4133.4 “Major Life Activities” Broadly Defined by California Law. . . . . . . . . . . . . . . . . . . . . 415

3.4.1 Comparison with Federal Definition of “Major Life Activities.” . . . . . . . . . . . . . 4153.5 The Major Life Activity of “Working” Need Only Impact

Employee’s Current Job and Not Broad Class of Jobs. . . . . . . . . . . . . . . . . . . . . . . . . . . 4163.5.1 Comparison with Federal Disability Law Standard. . . . . . . . . . . . . . . . . . . . . . . . . . 416

3.6 Chronic or Episodic Conditions May Be Disabilities When Active. . . . . . . . . . . . . 4173.6.1 Comparison to Federal Standard for Coverage of Chronic or

Episodic Conditions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4173.7 “Mitigating Measures” Not Considered in Determining Disability. . . . . . . . . . . . . 417

3.7.1 Comparison with Federal “Mitigating Measures” Standard. . . . . . . . . . . . . . . . . . 4193.8 California Defines “Disability” to Include Certain “Medical Conditions”

Such as Cancer and Genetic Predisposition to Disease or Disorder. . . . . . . . . . . . . 4193.8.1 Employer Duty to Accommodate Medical Conditions. . . . . . . . . . . . . . . . . . . . . . 420

3.9 Conditions Excluded from Definition of “Disability” Under California Law. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4203.9.1 Comparison to Conditions Excluded from

Definition of “Disability” Under Federal Law. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4213.10 Physical Characteristics Not Considered Disabilities. . . . . . . . . . . . . . . . . . . . . . . . . 421

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4 California’s Disability Law Protection for Individuals Without Current or Actual Disabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4214.1 Protected Individuals Need Not

Have Actual or Current Disabilities. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4214.2 Persons “Associated” with Disabled Individuals Are Protected. . . . . . . . . . . . . . . . 422

4.2.1 Comparison to Federal Disability Law Standard. . . . . . . . . . . . . . . . . . . . . . . . . . . . 4224.3 Individuals with a “Record” or “History” of Disability Are Protected. . . . . . . . . . 422

4.3.1 Employer Duty to Reasonably Accommodate Individuals with “Record” or “History” of Disability. . . . . . . . . . . . . . . . . . . . . . . . . 423

4.3.2 Comparison to Federal Disability Law Standard. . . . . . . . . . . . . . . . . . . . . . . . . . . . 4234.4 Persons “Regarded,” “Perceived,” or “Treated” as Disabled Are Protected. . . . . . 424

4.4.1 Employer Duty to Reasonably Accommodate Individuals “Regarded” or “Treated” as Having Disability. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 425

4.4.2 Comparison to Federal “Regarded As” Standard. . . . . . . . . . . . . . . . . . . . . . . . . . . . 4254.4.3 Employer Defense to Claims Based on

“Transitory and Minor” Impairments. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4264.5 Persons Regarded as Having an Impairment that “May Become”

a Disability Are Protected. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4274.6 Persons Requiring “Special Education” Resulting from Impairment

Are Protected. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4275 California’s Legal Duty to “Reasonably Accommodate”

Disabled Individuals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4285.1 Overview of California’s Duty to Reasonably Accommodate. . . . . . . . . . . . . . . . . . 428

5.1.1 Comparison with Federal Disability Law Standard. . . . . . . . . . . . . . . . . . . . . . . . . . 4285.2 Employee Has Burden of Proving Failure to Accommodate. . . . . . . . . . . . . . . . . . . 4295.3 California’s Duty to “Reasonably Accommodate” Defined. . . . . . . . . . . . . . . . . . . . . 429

5.3.1 Comparison with Federal “Reasonable Accommodation” Standard. . . . . . . . . . 4305.4 No Employer Duty to Eliminate Essential Job Functions. . . . . . . . . . . . . . . . . . . . . . 430

5.4.1 “Essential Job Functions” Defined. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4315.4.2 Factors Used to Determine Essential Job Functions. . . . . . . . . . . . . . . . . . . . . . . . . 4315.4.3 Evidence Used to Determine Essential Job Functions. . . . . . . . . . . . . . . . . . . . . . . 4325.4.4 Effect of Employee’s Failure to Take Medications,

Get Treatment, or Use Assistive Devices. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4345.5 No Employer Duty to Lower Quality or Quantity Standards. . . . . . . . . . . . . . . . . . . 4345.6 No Employer Duty to Provide Accommodation of Employee’s Choice —

Only “Effective” Accommodation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4345.7 Employee Refusal to Accept Effective

Accommodation Justifies Termination. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4355.8 No Employer Duty to Provide Personal Use Items. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 436

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6 California’s Legal Duty to Engage in the “Interactive Process” . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4366.1 Overview of California’s “Interactive Process” Requirement. . . . . . . . . . . . . . . . . . 4366.2 Employer Duty to Initiate Interactive Process for “Obvious” Disabilities. . . . . . 4376.3 Employee Duty to Initiate Interactive Process for Non-Obvious Disabilities. . 438

6.3.1 No “Magic Words” Needed to Request Reasonable Accommodation and Trigger Interactive Dialogue Requirement. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 438

6.3.2 Employee Accommodation Can Be Requested by Third Parties Such as Doctors, Spouses, and Friends. . . . . . . . . . . . . . . . . . . . . . . . 439

6.4 Employer Duties When Engaging in California’s Interactive Process. . . . . . . . . . . 4396.4.1 Comparision with Federal Four Step Approach for Interactive Process. . . . . . 4416.4.2 Employer Use of Job Accommodation Network (“JAN”). . . . . . . . . . . . . . . . . . . . . 442

6.5 Employee Duties When Engaging in California’s Interactive Process. . . . . . . . . . 4436.6 Duty of Each Party to Participate in Timely,

Good Faith, Interactive Dialogue. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4446.6.1 Interactive Dialogue Must Be “Timely.” . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4456.6.2 Interactive Dialogue Must Be in “Good Faith.” . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4456.6.3 Required Focus of Interactive Dialogue. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 446

6.7 Termination of the Interactive Process. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4466.8 Employer Liability for Failure to Engage in Interactive Process. . . . . . . . . . . . . . . . 447

7 The Employer’s Right to Medical Information to Determine Need for Accommodation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4477.1 Employer Right to Medical Information to Determine

Existence of Disability and Need for Accommodation. . . . . . . . . . . . . . . . . . . . . . . . . 4477.1.1 Situations Where Documentation May Not Be Requested. . . . . . . . . . . . . . . . . . 448

7.2 Employer Limited to “Reasonable Medical Documentation” to Support Accommodation Request. . . . . . . . . . . . . . . . . . . . . . . . 4487.2.1 Employer May Obtain Medical Documentation Annually

for Accommodations Lasting Longer Than One Year. . . . . . . . . . . . . . . . . . . . . . . 4517.3 Employer May Require Medical Documentation

from Legally Authorized “Health Care Provider.” . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4517.4 Employee Authorization Required to Obtain Medical Information. . . . . . . . . . . . 451

7.4.1 California Generally Requires Written Authorization to Obtain Employee Medical Information. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 452

7.5 The Two Basic Methods for Obtaining Employee Medical Information. . . . . . . 4537.5.1 The Written “Questionnaire” Method. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4537.5.2 The Written “Description” Method. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4547.5.3 Sample Disability Verification Form. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 455

7.6 Duty of Employer Rejecting Medical Documentation to Explain Insufficiency and Allow Employee to Supplement. . . . . . . . . . . . . . . . . . 455

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7.7 Employer May Require Examination by Its Own Health Care Provider if Employee Produces Insufficient Medical Documentation on Two or More Occasions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 455

8 Specific Types of Reasonable Accommodation . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4568.1 Employer Duty to Provide Reasonable Accommodation. . . . . . . . . . . . . . . . . . . . . . 456

8.1.1 Types of Reasonable Accommodation Recognized by California Law. . . . . . . . 4578.1.2 Comparison with Federal Reasonable Accommodation Standard. . . . . . . . . . . . 458

8.2 Employer Duty to Restructure Job. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4588.2.1 No Duty to Eliminate or Reassign Essential Job Functions. . . . . . . . . . . . . . . . . . 4588.2.2 Employer May Require Exchange of Marginal Functions with Coworkers. . . . 459

8.3 Employer Duty to Provide Time Off from Work. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4598.3.1 “Fully Healed” or “100 Percent Healed” Return to Work

Policies Unforceable Without Individualized Assessment.. . . . . . . . . . . . . . . . . . . 4608.3.2 Contracts Requiring Termination for Absence

Exceeding Specified Time Period Unlawful. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4618.4 Employer Duty to Create Modified or Part-Time Work Schedules. . . . . . . . . . . . . 461

8.4.1 Modification of Break Schedule to Provide Additional or Longer Breaks. . . . . 4618.4.2 Modification of Time for Performance of Job Function. . . . . . . . . . . . . . . . . . . . . 4618.4.3 Employer Duty to Provide Intermittent Leave or Reduced Work

Schedule if Disabled Employee Has a “Serious Heath Condition” Under CFRA/FMLA. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 462

8.4.4 Duty to Provide Modified Work Schedule Based on Employee’s “Association” with Disabled Person . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 464

8.5 Employer Duty to Modify Personnel Policies and Practices. . . . . . . . . . . . . . . . . . . 4658.5.1 Employer Duty to Modify Leave and Attendance Policies. . . . . . . . . . . . . . . . . . . 4658.5.2 Employer Duty to Grant Extended Leaves of Absence. . . . . . . . . . . . . . . . . . . . . . 4668.5.3 No Employer Duty to Excuse Workplace Misconduct Caused by Disability. . 4678.5.4 No Duty to Accommodate Violations of Conduct Rules if Employer Has No

Knowledge of Disability or Need for Accommodation. . . . . . . . . . . . . . . . . . . . . . . 4688.6 No Employer Duty to Accommodate “Current”

Illegal Use of Drugs or Current Use of Alcohol. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4698.6.1 No Employer Duty to Modify Policies Prohibiting Drug and Alcohol Use. . . . 4708.6.2 No Employer Duty to Modify Lawful Drug Testing Policies or

Accommodate Employees Testing Positive for Illegal Drug Use. . . . . . . . . . . . . 4708.6.3 No Duty to Accommodate Medical Marijuana Use. . . . . . . . . . . . . . . . . . . . . . . . . 4728.6.4 Alcoholism Can Be Disability Requiring Accommodation. . . . . . . . . . . . . . . . . . 4728.6.5 Employer Duty to Provide Time Off to Participate

in Drug or Alcohol Rehabilitation Program. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4738.6.6 Recovering Drug Addicts Protected by Disability Laws

Based on “History or Record” of Use. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 474

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8.6.7 Persons Erroneously “Regarded As” Drug Addicts and Illegal Users Protected. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 474

8.7 Employer Duty to Reassign Employee to Vacant Position. . . . . . . . . . . . . . . . . . . . . 4758.7.1 Reassignment Required Only if No Other

Effective Accommodations Available. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4768.7.2 Employee Must Be “Qualified” for Reassignment. . . . . . . . . . . . . . . . . . . . . . . . . . . 4768.7.3 Employer Duty to Reassign Only to “Vacant” Position. . . . . . . . . . . . . . . . . . . . . . 4778.7.4 Multiple Vacant Jobs Must Be Offered Based on Equivalency

of Pay, Status, and Benefits. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4788.7.5 No Employer Duty to Maintain Salary for Reassignment

to Lower Level Position. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4788.7.6 No Employer Duty to “Promote” as Part of Reassignment. . . . . . . . . . . . . . . . . . . 4798.7.7 “Introductory Period” Employees May Not Be Entitled to Reassignment. . . . . 4798.7.8 Employer Duty to Search Broadly for Vacant Positions. . . . . . . . . . . . . . . . . . . . . 4798.7.9 Employer Duty to Notify Employee of Future Vacancies. . . . . . . . . . . . . . . . . . . . 4808.7.10 No Duty to Reassign if Accommodation Violates Seniority Rules. . . . . . . . . . 480

8.8 No Employer Duty to Provide Different Supervisor. . . . . . . . . . . . . . . . . . . . . . . . . . . . 4818.9 “Telecommuting” May Be Reasonable Accommodation. . . . . . . . . . . . . . . . . . . . . . . . 4818.10 Use of “Assistive Animal” May Be Reasonable Accommodation. . . . . . . . . . . . . . 4828.11 Employer Duty to Provide Reasonable Accommodation to

Access Training Programs, Services, and Social Functions. . . . . . . . . . . . . . . . . . . 4838.11.1 Employer Duty to Provide Reasonable Accommodation

to Attend Training Programs. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4849 The Employer’s “Undue Hardship” Defense to Accommodation . . . . . . . . . 484

9.1 Overview of Employer’s Undue Hardship Defense to Reasonable Accommodation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 484

9.2 California’s Definition of “Undue Hardship.” . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4859.2.1 Comparison with Federal Undue Hardship Standard. . . . . . . . . . . . . . . . . . . . . . . 486

9.3 Tax Deductions, Credits, and Other Assistance Considered in Determination of Undue Hardship. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4879.3.1 Employer Must Permit Employee to Pay for Accommodation if

No Tax or Monetary Assistance Available. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4879.4 Customer Preference and Employee Morale Not Grounds for

Undue Hardship. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4889.5 Disruption to Work of Employees Can Be Undue Hardship. . . . . . . . . . . . . . . . . . . 488

9.5.1 Disruption to Environment of Employees or Customers May Be Considered. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 489

9.6 Leaves of Absence with No “Fixed” Date of Return May Cause Undue Hardship. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 489

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10 The Employer’s “Danger to Self or Others” Defense . . . . . . . . . . . . . . . . . . . . . . 49110.1 Overview of California’s “Danger to Self or Others” Defense. . . . . . . . . . . . . . . . . . 49110.2 No Defense Under California Law Based on Future Risk. . . . . . . . . . . . . . . . . . . . . . 49110.3 Factors Considered in Determining “Danger to Self or Others” Defense. . . . . . . 49110.4 Comparison with Federal “Direct Threat” Standard. . . . . . . . . . . . . . . . . . . . . . . . . . 492

10.4.1 Comparison with Federal Standard for Assessing Danger to Self or Others. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 493

10.4.2 Employer May Refuse to Employ Certain Food Handlers With Infectious or Communicable Diseases. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 495

11 California’s Legal Duty to Keep Medical Information Private . . . . . . . 49511.1 Overview of California Duty to Establish Confidentiality

Procedures for Medical Records. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49511.1.1 Employer Duty to Obtain Authorization for Use

or Disclosure of Medical Information. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49611.2 Employer Duty to Establish Confidentiality Procedures for

Medical Records Under California and Federal Disability Laws. . . . . . . . . . . . . . 49611.2.1 Permissible Bases for Disclosure of Disability-Related Medical

Information under California and Federal Disability Laws. . . . . . . . . . . . . . . . 49711.3 Responding to Co-Worker Questions About

Disabilities and Accommodation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49712 California Workers’ Compensation Laws, CAL-OSHA Laws,

and Overlap with Disability Accommodation Laws . . . . . . . . . . . . . . . . . . . . 49812.1 Overview of California’s Workers’ Compensation Law. . . . . . . . . . . . . . . . . . . . . . . 498

12.1.1 Employment Relationship Required for California Workers’ Compensation Law Coverage. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 499

12.2 Employer Duty to Maintain Workers’ Compensation Insurance. . . . . . . . . . . . . 49912.3 California Workers’ Compensation Laws Cover

Broad Range of Work-Related Injuries and Illnesses. . . . . . . . . . . . . . . . . . . . . . . . . 50012.4 Employer Duty to Provide Initial Claim Form Within 24 Hours of Injury. . . 500

12.4.1 Consequence of Failure to Provide Initial Claim Form in Timely Manner. . 50112.5 Employer Duty to Report Work-Related Injuries to Insurance Carrier. . . . . . . . 50112.6 Employers Prohibited from Terminating Employees for

Making Workers’ Compensation Claims. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50212.7 Overlap of California Workers’ Compensation and Disability Laws. . . . . . . . . . 502

12.7.1 Employer Coverage Requirements Differ for Workers’ Compensation and Disability Laws. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 503

12.7.2 Occupational Injury Can Also Be “Disability” Requiring Reasonable Accommodation Under Disability Laws. . . . . . . . . . . . . . . . . . . . . . 503

12.7.3 Employer Duty to Reasonably Accommodate Occupational Injuries That Are Also “Disabilities.” . . . . . . . . . . . . . . . . . . . . . . . 504

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12.7.4 Workers’ Compensation “Light Duty” and Employer Duty to Provide Reasonable Accommodation. . . . . . . . . . . . . . . . . . . . . . . . . . . . 505

12.7.5 Employer Questions About Occupational Injuries and Medical Examinations Restricted by Disability Discrimination Laws. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 506

12.7.6 Employer Duty to Keep Confidential Medical Information Regarding Occupational Injuries and Claims. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 506

12.7.7 Insurer Duty Not to Disclose Medical Information to Employer. . . . . . . . . . . 50712.8 Employer Duty to Post Required Workers’ Compensation Notice. . . . . . . . . . . 50712.9 Employer Duty to Report Serious Injuries, Illnesses and Fatalities

to Cal-OSHA Immediately. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50713 Family and Medical Leave Laws and Overlap with

Disability Accommodation Laws . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50813.1 Overview of California and Federal Family and Medical Leave Laws. . . . . . . . . 50813.2 Overlap of Family Medical Leave and Disability Accommodation Laws. . . . . . 508

13.2.1 Employer and Employee Coverage Requirements Differ for Leave and Disability Laws. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 509

13.2.2 “Serious Health Condition” Under CFRA/FMLA May Also Be “Disability” Requiring Reasonable Accommodation. . . . . . . . . . . . . . . . . . . 509

13.2.3 Employer Duty to Reasonably Accommodate May Require Leave Exceeding CFRA/FMLA Leave Entitlement. . . . . . . . . . . . . . . . . . . . . . . . 510

13.2.4 Employer Duty to Reasonably Accommodate May Require Intermittent or Reduced Schedule Leave Exceeding CFRA/FMLA Leave Entitlement. . . 511

13.2.5 Employer Duty to Reasonably Accommodate May Require Reinstatement After Expiration of CFRA/FMLA Leave Entitlement. . . . . . . 512

13.2.6 Employer-Provided Health Insurance May Exceed CFRA/FMLA Leave Entitlement. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 513

13.2.7 Employer Must Provide Employee With Greater Benefit if Both Disability and Leave Laws Apply Concurrently. . . . . . . . . . . . . . . . . . . . 513

13.2.8 Employer Has No Duty to Accommodate by Providing Leave to Care for Sick Family Members or Other Time Off Required by CFRA/FMLA. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 514

13.2.9 Employer May Require Medical Certification for CFRA/FMLA Leave Without Violating Disability Law Restrictions on Medical Inquiries. . . . . . . 514

14 Damages for Violations of California’s Disability Laws . . . . . . . . . . . . . . . . 51414.1 Damages Available for Violations of California Fair Employment

and Housing Act (FEHA). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51414.2 Comparison with Federal Damages Standard. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 514

15 Recordkeeping and Posting Requirements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51515.1 Recordkeeping and Posting Requirements

Related to Disability and Workers’ Compensation. . . . . . . . . . . . . . . . . . . . . . . . . . . . 51515.2 Workers’ Compensation Law Posting Requirements. . . . . . . . . . . . . . . . . . . . . . . . . . 51515.3 Workers’ Compensation Law Recordkeeping Requirements. . . . . . . . . . . . . . . . . . 515

Contents: Chapter 5: Time Off from Work xxxvii

Endnotes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 517

Ε Chapter 5: Time Off from Work 551

1 California Laws Governing Time Off from Work. . . . . . . . . . . . . . . . . . . . . . . . . . 5511.1 Overview of California Laws Regulating Time Off from Work. . . . . . . . . . . . . . . . . . 551Table 2: Summary of California and Federal Leave Laws . . . . . . . . . . . . . . . . . . . . . . . . 553

2.1 Employers Not Required to Offer Paid Vacation Time. . . . . . . . . . . . . . . . . . . . . . . . . 5602.2 California Permits Reasonable Restrictions on

Accrual and Use of Vacation Time. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5602.3 Vacation Time “Vests” as Work is Performed Under California Law. . . . . . . . . . . . 5612.4 Employer Vacation Policies Requiring

“Forfeiture” Prohibited by California Law. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5612.4.1 “Use-It-or-Lose-It” Policies Prohibited. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5622.4.2 Employer “Caps” on Vacation Accruals Permissible. . . . . . . . . . . . . . . . . . . . . . . . . 5622.4.3 Employer Vacation Caps Must Be “Reasonable.” . . . . . . . . . . . . . . . . . . . . . . . . . . . 5622.4.4 Decrease in Employee Pay Causing Reduction in

Value of Accrued Hours Does Not Cause Unlawful Forfeiture. . . . . . . . . . . . . . . 5632.4.5 “Lump Sum” or “Accelerated” Accruals May Cause

Unlawful Forfeiture Absent Prorated Payout at Termination. . . . . . . . . . . . . . . . 5632.4.6 “Unlimited” Vacation Use Policies Subject

to Forfeiture and Termination Pay Rules. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5652.4.7 “Discounted” Pay Out of Vacation Hours During Employment Prohibited. . . 5652.4.8 Mandatory Use of Vacation Time Restricted During

Furloughs or to Complete Contract Term. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5652.5 Employer Can Set Payment for Vacation Hours

During Vacation at Less Than Employee’s Normal Wage. . . . . . . . . . . . . . . . . . . . . . 5662.6 Employer Duty to Pay Out Accrued Vacation Hours at Termination. . . . . . . . . . 566

2.6.1 Vesting for Vacation Use During Employment Distinguished from Vesting for Vacation Payout at Termination. . . . . . . . . . . . . . . . . . . . . . . . . . . 566

2.6.2 Employer Duty to Use Final “Vacation Pay” Rate to Compute Vacation Pay at Termination. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 566

2.6.3 Employees Accruing Vacation Under “Different Methods of Calculation” Must Be Paid for Vacation Use Under Each Method. . . . . . . . . . . . 567

2.6.4 Employers Prohibited from Recovering Advances on Vacation Time from Final Paycheck. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 567

2.7 Employer Deadlines for Payout of Accrued Vacation Time at Termination. . . . 5682.7.1 Employer Deadline for Pay Out of Vacation at Termination. . . . . . . . . . . . . . . . . 5682.7.2 Employer Subject to “Waiting Time” Penalties for

Failure to Pay Out Vacation Time at Termination. . . . . . . . . . . . . . . . . . . . . . . . . . . 568

xxxviii Contents: Chapter 5: Time Off from Work

2.8 Sale of a Business May Constitute “Termination” Requiring Pay Out of Vacation Time. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 568

2.9 Prospective Modifications to Employer Vacation Policy Permitted at Any Time. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 569

2.10 Partial Day Deductions of Vacation Time Permissible for Exempt Employees. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 569

2.11 Employees May Be Required to Exhaust Vacation Time During CFRA/FMLA Leave. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 569

2.12 Required Use of Two Weeks Vacation Time Permitted as Condition to Receipt of California Family Temporary Disability Insurance (FTDI). . . . . . 570

2.13 Employee Forfeiture Claims May Be Preempted by ERISA. . . . . . . . . . . . . . . . . . . 5702.14 Employees Covered by Union Contract May Not be Subject to

Vesting and Termination Payout Requirements. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5702.15 Statute of Limitations on Vacation Pay Claims. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5712.16 Individual and “Representative” Civil Actions \Permitted to

Recover Damages. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5713 Paid Time Off (PTO) and Other Unconditional Time Off Policies . . . . . . 571

3.1 Overview of Paid Time Off (PTO) Policies. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5713.2 Paid Time Off (PTO) Subject to Vacation Forfeiture Rules. . . . . . . . . . . . . . . . . . . . 572

3.2.1 California Permits Reasonable Restrictions on Use of PTO. . . . . . . . . . . . . . . . . . 5733.3 Employer “Unconditional” Paid Time Off Policies Subject to

California Vacation Rules. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5733.3.1 Conditions Placed on Time Off Sufficient to Avoid Vacation

Vesting and Termination Pay Rules. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5733.3.2 Unpaid Time Off Not Subject to Vacation Vesting and Termination

Pay Rules. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5743.4 “Floating Holidays” Subject to Vacation Forfeiture Rules. . . . . . . . . . . . . . . . . . . . . . 5743.5 Paid Sick Leave Policies Permitting Time Off for “Personal Business”

Subject to Vacation Forfeiture and Termination Pay Rules. . . . . . . . . . . . . . . . . . . . 5753.6 Paid “Personal Days” Subject to Vacation Forfeiture and Termination

Pay Rules. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5753.7 Paid “Bonus Days” Subject to Vacation Forfeiture and Termination

Pay Rules. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5753.8 Certain Sabbatical Programs Subject to Vacation Forfeiture and

Termination Pay Rules. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5754 Holidays . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 577

4.1 Holidays Not Required Under California Law. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5774.2 Holidays Recognized by State of California. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5774.3 Holidays Recognized by Federal Law. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5774.4 California Permits Reasonable Restrictions on Use of Holiday Time Off. . . . . . . 578

Contents: Chapter 5: Time Off from Work xxxix

4.5 Paid Holiday Hours Not Considered in Determining Overtime Pay Unless Hours Actually Worked. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 578

5 Sick Leave . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5785.1 California Duty to Provide Paid Sick Leave. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 578

5.1.1 Overview of California Paid Sick Leave Requirements. . . . . . . . . . . . . . . . . . . . . . . 5795.1.2 Employers Covered By California Paid Sick Leave Law. . . . . . . . . . . . . . . . . . . . . . 5795.1.3 Employees Covered By Paid Sick Leave Law. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5795.1.4 Employee Accrual and Use of Paid Sick Leave. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5805.1.5 Employers Must Use One of Four Approved Methods

to Grant Paid Sick Leave. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5815.1.6 Permitted “Use” of Paid Sick Leave. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5825.1.7 Employers May Require Use In Two Hour Minimum Increments. . . . . . . . . . . . 5835.1.8 Employers May Cap Employee Annual Use at the

Greater of 24 Hours or Three Days. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5835.1.9 Employers May Cap Employee Total Leave Accrual at

Six Days or 48 hours. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5835.1.10 Employers May Use “Front Loaded/Lump Sum” Method

Instead of “Per Hour Accrual” to Satisfy Statute. . . . . . . . . . . . . . . . . . . . . . . . . . . 5835.1.11 No Carryover or Additional Accrual Required with

Use of “Front Loaded/ Lump Sum” Method. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5845.1.12 Preexisting PTO, Sick and Other Paid Leave Policies

May Be Used to Meet Requirements of Statute. . . . . . . . . . . . . . . . . . . . . . . . . . . . 5845.1.13 Calculation of Required Pay During Leave and Deadline for Payment. . . . . . 5855.1.14 No Pay Out of Unused Leave Required at Termination. . . . . . . . . . . . . . . . . . . . 5855.1.15 One Year Break in Service Permitted Without Loss of Accrued Leave. . . . . . . 5855.1.16 Employer Duty to Provide Leave Balance on Employee

Wage Statement or By Other Written Notice Each Payday. . . . . . . . . . . . . . . . 5865.1.17 Individual Written Notice of Rights to Employees Required. . . . . . . . . . . . . . . 5865.1.18 Sample Paid Sick Leave Policies — “Front Loaded/Lump Sum”

and “Per Hour Allocation” Methods. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5875.1.19 Employer Duty to Post General Notice and Keep Records

for Three Years. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5875.1.20 Retaliation for Excercising Leave Rights Violates Law. . . . . . . . . . . . . . . . . . . . . 5875.1.21 Retaliation By Employer Presumed if Adverse Action Occurs Within

30 Days of Protected Activity. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5875.1.22 “Secret” Complaints to Labor Commissioner Encouraged. . . . . . . . . . . . . . . . 5885.1.23 Damages for Employer Violations. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5885.1.24 Civil Actions for Violations Authorized. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5885.1.25 No Liability for Isolated and Unintentional Employer Errors . . . . . . . . . . . . . . 5885.1.26 Overlap With Local Paid Sick Leave Ordinances. . . . . . . . . . . . . . . . . . . . . . . . . . 589

5.2 California Permits Reasonable Restrictions on Use of Sick Leave. . . . . . . . . . . . . . 589

xl Contents: Chapter 5: Time Off from Work

5.3 California “Kin Care” Statute Authorizes Sick Leave Use to Care for Close Family Members and Registered Domestic Partners. . . . . . . . . . . . . . . . 5905.3.1 Leave Requirements Apply to Both Private and Public Sector Employers. . . . 5905.3.2 Entitlement Applies to Care for Parents, Children, Siblings,

Grandparents, and Grandchildren. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5905.3.3 Amount of Sick Leave to Care for Family Members and Domestic

Partners Must Equal at Least One Half of Employee’s Annual Accrual of Paid Sick Leave. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 590

5.3.4 Employer Conditions on Use of Sick Leave May Be Applied to Family Members. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 591

5.3.5 Employer “Absence Control” Policies Unlawful. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5915.3.6 Paid Time Off (PTO) Policies Requiring Advance

Notice to Schedule Time Off Violate California Law. . . . . . . . . . . . . . . . . . . . . . . . 5925.3.7 Denial of Leave and Retaliation Prohibited. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5925.3.8 No Collective Bargaining Agreement Preemption. . . . . . . . . . . . . . . . . . . . . . . . . . 5925.3.9 Civil Action Authorized for Reinstatement, Damages, and Attorneys’ Fees. . . 5925.3.10 No Impact on California Family Rights Act (CFRA)

or Family and Medical Leave Act (FMLA) Leave. . . . . . . . . . . . . . . . . . . . . . . . . 5925.4 San Francisco’s Paid Sick Leave Ordinance. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 592

5.4.1 Overview of Basic Paid Sick Leave Entitlement. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5935.4.2 Accrual and Use of Paid Sick Leave. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5935.4.3 Employees Entitled to Accrue Paid Sick Leave Under Ordinance. . . . . . . . . . . . 5945.4.4 Employers Located Outside of San Francisco May Be Subject to Ordinance. . 5945.4.5 Reasons for Which Sick Leave Can Be Used. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5955.4.6 Employer Deadline to Offer Option to Designate “Other Person”

to Employees With No Spouse or Domestic Partner. . . . . . . . . . . . . . . . . . . . . . . . 5965.4.7 Employer Duty to Make Designation Opportunity Available Annually. . . . . . . 5965.4.8 Employers May Impose Reasonable Limitations on Use of Paid

Sick Leave Accrued Under Ordinance. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5965.4.9 Employers May Cap Paid Sick Leave Accruals. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5975.4.10 Employers May Require Use of Paid Leave

in Minimum Increments of One Hour. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5975.4.11 Employers May Limit Carry Over of Paid Sick Leave from Year to Year. . . . 5975.4.12 Employer Paid Leave or PTO Policies May

Satisfy Requirements of Ordinance. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5985.4.13 Calculation of Employee Pay During Sick Leave. . . . . . . . . . . . . . . . . . . . . . . . . . 5985.4.14 Employee Duty to Reinstate Accrued Leave Hours

to Employees Rehired Within One Year. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5995.4.15 Employer “Absence Control” Policies Unlawful. . . . . . . . . . . . . . . . . . . . . . . . . . . 5995.4.16 Waiver Permitted by Collective Bargaining Agreement. . . . . . . . . . . . . . . . . . . 6005.4.17 Employer Notice and Posting Requirements. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6005.4.18 EmployerWage Statement and Recordkeeping Requirements. . . . . . . . . . . . . 600

Contents: Chapter 5: Time Off from Work xli

5.4.19 Denial of Leave Rights Violate Ordinance. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6005.4.20 Retaliation Presumed if Adverse Action

Occurs Within 90 Days of Protected Activity. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6005.4.21 “Secret Reporting” to Enforcement Agency Authorized. . . . . . . . . . . . . . . . . . . 6015.4.22 Remedies for Employer Violations. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6015.4.23 Civil Actions for Violations Authorized. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 601

5.5 Oakland’s Paid Sick Leave Ordinance. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6025.5.1 Overview of Basic Leave Entitlement. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6025.5.2 Employee Accrual and Use of Paid Sick Leave. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6025.5.3 Employees Entitled to Accrue Paid Sick Leave Under Ordinance. . . . . . . . . . . . . 6035.5.4 Covered Employers Broadly Defined to Include Joint Employers

and Those Located Outside of Oakland. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6035.5.5 Reasons for Which Paid Sick Leave Can Be Used. . . . . . . . . . . . . . . . . . . . . . . . . . . 6035.5.6 Employer Deadline to Offer Option to Designate “Other Person”

to Employees With No Spouse or Domestic Partner. . . . . . . . . . . . . . . . . . . . . . . . . 6035.5.7 Employer Duty to Make Designation Opportunity Available Annually. . . . . . . 6045.5.8 Employer May Impose Reasonable Limitations on Use of Paid Sick Leave. . . . 6045.5.9 Employers May Cap Leave Accrual, Limit Carry Over From Year to Year, and

Impose Minimum Use Increments of Not More Than One Hour. . . . . . . . . . . . 6045.5.10 Employer Paid Leave or PTO policies May Satisfy Requirements

of Ordinance. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6045.5.11 No Pay Out of Sick Leave at Termination Required. . . . . . . . . . . . . . . . . . . . . . . . 6045.5.12 Employers Prohibited From Reducing Other Benefits to “Fund” Paid

Sick Leave Obligation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6055.5.13 Waivers Prohibited Except by Collective Bargaining Agreement. . . . . . . . . . . 6055.5.14 Employer Duty to Give Written Notice to New Hires

and Current Employees. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6055.5.15 Employer Duty to Post Required Notice. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6055.5.16 Three Year Recordkeeping and Employee Access Requirement.. . . . . . . . . . . . 6055.5.17 Retaliation Prohibited By Ordinance. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6065.5.18 Retaliation Presumed if Discharge Occurs Within 120 Days of

Protected Activity. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6065.5.19 City Authorized to Enforce Ordinance. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6065.5.20 Civil Actions Authorized for Violations. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 606

5.6 Emeryville’s Paid Sick Leave Ordinance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6065.7 Los Angeles’ Paid Sick Leave Ordinance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 607

5.7.1 Overview of Basic Leave Entitlement. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6075.7.2 Employee Accrual and Use of Paid Sick Leave. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6075.7.3 Employees Entitled to Accrue Paid Sick Leave Under Ordinance. . . . . . . . . . . . . 6075.7.4 Covered Employers Broadly Defined to Include Individuals,

Joint Employers and Those Located Outside of Los Angeles. . . . . . . . . . . . . . . . . 607

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5.7.5 Los Angeles Minimum Wage Rates Applicable to Employer Payments for Sick Leave Hours. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 608

5.7.6 Deferral of Minimum Wage Rates for Sick Leave Hours Available to Qualifying Non-Profits With 26 or More Employees. . . . . . . . . . . . . . . . . . . . . . 608

5.7.7 Employers May Not Cap Annual Paid Sick Leave Use at Less Than 48 Hours or Cap Total Accrual at Less Than 72 Hours. . . . . . . . . . . . . . 609

5.7.8 Employer Paid Leave or PTO Policies Meeting 48 Hour Minimum May Satisfy Requirements of Ordinance. . . . . . . . . . . . . . . . . 609

5.7.9 Paid Sick Leave Use Permitted for Any Individual Related by Blood or Based on “Close Affinity.” . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 609

5.7.10 No Pay Out of Sick Leave Required at Termination. . . . . . . . . . . . . . . . . . . . . . . 6095.7.11 Reinstatement of Accrued Sick Leave Required

Upon Rehire Within One Year. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6095.7.12 Retaliation Prohibited by Ordinance. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 610

5.8 San Diego’s Paid Sick Leave Ordinance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6105.8.1 Overview of Basic Leave Entitlement. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6105.8.2 Employee Accrual and Use of Paid Sick Leave. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6105.8.3 Employees Entitled to Accrue Paid Sick Leave Under Ordinance. . . . . . . . . . . . . 6105.8.4 Covered Employers Broadly Defined to Include

Those Located Outside of San Diego. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6115.8.5 Exempt Employees Presumed to Work 40 Hours Per Week

to Compute Accrual. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6115.8.6 Employers May Set Minimum Use Increments In Amounts

Not Less Than Two Hours. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6115.8.7 Employers May Not Cap Annual Paid Sick Leave Use at

Less Than 40 Hours or Cap Total Accrual at Less Than 80 Hours. . . . . . . . . . . . 6115.8.8 Use of Front Loaded Lump Sum Method Excuses Employer

From Carryover Requirements.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6125.8.9 Employer PTO, Vacation and Other Paid Leave Policies

May Be Used to Meet Requirements of Ordinance. . . . . . . . . . . . . . . . . . . . . . . . . . 6125.8.10 Paid Sick Leave Use Permitted for Illness, Injury and Broad Range

of Other Conditions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6125.8.11 Employers May Require Up to Seven Days Notice For Foreseeable Leaves. 6125.8.12 Employers May Require Documentation to Verify Leaves Exceeding

Three Work Days. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6135.8.13 Employers Prohibited From Conditioning Leave on Location

of Replacement Worker. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6135.8.14 No Pay Out of Sick Leave Required at Termination. . . . . . . . . . . . . . . . . . . . . . . 6135.8.15 Reinstatement of Accrued Sick Leave Required Upon Rehire

Within Six Months. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6135.8.16 Notice and Posting Requirements. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6135.8.17 Employers Subject to Three Year Recordkeeping Requirement. . . . . . . . . . . . 614

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5.8.18 Retaliation Presumed For Adverse Action Within 90 Days of Protected Activity. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 614

5.8.19 Civil Actions by Employees Authorized . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6145.9 Santa Monica’s Paid Sick Leave Ordinance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6155.10 Long Beach’s Hotel Worker Paid Sick Leave Ordinance . . . . . . . . . . . . . . . . . . . . . . . 6155.11 Berkeley’s Paid Sick Leave Ordinance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 616

6 California Pregnancy Disability Leave . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6176.1 California’s Four-Month Pregnancy Disability Leave Requirement. . . . . . . . . . . . . 617

6.1.1 More Than Four Months of Leave May Be Required. . . . . . . . . . . . . . . . . . . . . . . . 6186.2 Employers Covered by California’s Pregnancy Disability Leave Law. . . . . . . . . . . . 619

6.2.1 Employer Coverage Broadly Defined. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6196.3 Employees Covered By California’s Pregnancy Disability Leave Law. . . . . . . . . . . . 619

6.3.1 Employee Must Be “Disabled” by Pregnancy, Childbirth or Related Medical Conditions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 619

6.3.2 Employee Considered “Disabled” When Specified Medical Conditions or Circumstances Exist. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 620

6.4 Leave May Be Taken Intermittently or on Reduced Work Schedule Basis. . . . . . 6216.5 Computation of Leave Entitlement Based on Hours Employee

Would Normally Work in Four Months. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6216.5.1 Calculating Four Month Leave Entitlement Where Employee

Works More or Less Than Regular Full Time Schedule. . . . . . . . . . . . . . . . . . . . . . 6226.5.2 Calculating Four Month Leave Entitlement Where

Intermittent Leave or Reduced Work Schedule Used. . . . . . . . . . . . . . . . . . . . . . . 6226.6 Employee’s Right to Pay and Benefits During Pregnancy Leave. . . . . . . . . . . . . . . . 622

6.6.1 Employee Pregnancy Disability Leave is Unpaid. . . . . . . . . . . . . . . . . . . . . . . . . . . . 6226.6.2 Employers Providing Paid Leave for Non-Pregnancy Related

Disability Leaves May Be Required to Pay Employees During Pregnancy Disability Leave. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 622

6.6.3 Employer May Require Employee to Use Accrued Sick Leave During Pregnancy Leave. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 623

6.6.4 Employee Right to Use Vacation and Other Accrued Time Off During Leave. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 623

6.6.5 Employer Duty to Maintain Group Health Insurance for Four Months at No Increased Cost to Employee. . . . . . . . . . . . . . . . . . . . . . . . 623

6.6.6 Four Month Health Coverage Benefit Extended by 12 Weeks for Employees Taking Additional Leave Under California Family Rights Act (CFRA). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 624

6.6.7 Employee Entitled to Participate in Health, Retirement, and Other Benefit Plans on Non-Discriminatory Basis During Pregnancy Leave. . . . . . . . 625

6.6.8 Employee Entitled to Accrue Seniority on Non-Discriminatory Basis During Pregnancy Leave. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 625

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6.6.9 Employer Cannot Require Forfeiture of Accrued Seniority Based on Pregnancy Leave. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 625

6.6.10 Pregnancy Leave Does Not Cause “Break In Service” Under Benefit Plans or Collective Bargaining Agreements. . . . . . . . . . . . . . . . . . . . . . . 626

6.7 Employer Duty to “Transfer” Pregnant Employee to Less Strenuous or Hazardous Job. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6266.7.1 Employer Has No Duty to Create a Job or Inconvenience

Other Employees to Accommodate Transfer Request. . . . . . . . . . . . . . . . . . . . . . . 6266.7.2 Employer Defenses to Duty to Transfer Employee. . . . . . . . . . . . . . . . . . . . . . . . . . 6276.7.3 Employer May Require Certification of Health Care

Provider as Condition to Approving Transfer. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6276.7.4 Employer May Require Transfer Where Employee Takes

Leave on Intermittent or Reduced Schedule Basis. . . . . . . . . . . . . . . . . . . . . . . . . . 6276.7.5 Employee Must be Reinstated When Transfer, Intermittent Leave,

or Reduced Work Schedule No Longer Medically Advisable. . . . . . . . . . . . . . . . 6276.7.6 Employer Defenses to Reinstatement After Transfer. . . . . . . . . . . . . . . . . . . . . . . . 628

6.8 Employee Duty to Give Reasonable Notice of Leave, Transfer, or Request for Reasonable Accommodation. . . . . . . . . . . . . . . . . . . . . . . . . 6286.8.1 Employee May Give Verbal Notice. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6286.8.2 Employee Must Give 30 Days’ Notice if Leave, Transfer, or

Request for Reasonable Accommodation Foreseeable. . . . . . . . . . . . . . . . . . . . . . . 6286.8.3 If Leave, Transfer, or Reasonable Accommodation Not

Foreseeable Employee Must Give Notice as Soon as Practicable. . . . . . . . . . . . . 6296.8.4 Employer Prohibited from Denying Leave, Transfer or Reasonable

Accommodation in Emergency or Unforeseeable Situations. . . . . . . . . . . . . . . . 6296.8.5 Employer Duty to Inform Employee of Notice

Requirement by Issuing Policy or Posting Notice. . . . . . . . . . . . . . . . . . . . . . . . . . . 6296.8.6 Failure of Employer to Give or Post Notice

Precludes Adverse Action Against Employee. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6296.9 Employer Duty to Respond to Request for Leave, Transfer, or

Reasonable Accommodation Within Ten Days. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6306.10 Employee Duty to Provide Required Medical Certification for

Leave, Transfer, or Reasonable Accommodation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6306.10.1 Employer Procedure for Obtaining Medical Certification. . . . . . . . . . . . . . . . . 6316.10.2 Employer Duty to Accept Certification and Not Seek Additional

Information. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6326.10.3 Health Care Provider Issuing Certification Need Not Be Physician. . . . . . . . 6326.10.4 Employee Failure to Return Completed Certification Form Within

15 Days May Result in Delay of Leave, Transfer, or Reasonable Accommodation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 632

6.11 Employer May Require Release to Return to Work After Leave or Transfer. . . 6336.12 Employer Duty to Reinstate Employee to “Same” Position Unless

Permissible Defense Applies. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 633

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6.12.1 Employer Duty to Guarantee Reinstatement in Writing Upon Request. . . . 6346.12.2 Immediate Reinstatement Required on Date Agreed Upon by Employer. . . 6346.12.3 Employer Duty to Reinstate Employee Within Two Business Days if Initial

Return Date Changes or if No Return Date Agreed Upon. . . . . . . . . . . . . . . . . 6346.12.4 Employer Defense to Reinstatement to “Same” Position. . . . . . . . . . . . . . . . . . 6346.12.5 Employer Defense to Reinstatement to “Comparable” Position. . . . . . . . . . . . 6356.12.6 Employee May Have Right to Reinstatement

Even if Leave Exceeds Four Months. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6366.12.7 Employee Right to Reinstatement More Restricted Once

Employee Takes Leave to Care for Newborn Under California Family Rights Act (CFRA). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 636

6.13 Employer Duty to “Reasonably Accommodate” Pregnant Employees. . . . . . . . 6376.14 California’s Lactation Accommodation Requirement. . . . . . . . . . . . . . . . . . . . . . . . 639

6.14.1 Employer Duty to Provide Private Location for Lactation. . . . . . . . . . . . . . . . . 6396.14.2 No Duty to Provide Break Time if Serious

Disruption to Employer Operations. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6406.14.3 Civil Actions and Labor Commissioner

Citations Authorized for Violations. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6406.15 Employer Duty to Post Required Pregnancy Disability Leave

(PDL) Notice. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6406.15.1 Employer Duty to Provide Copy of Notice to Employee Upon

Knowledge of Pregnancy or Inquiry About Leave or Transfer. . . . . . . . . . . . . 6406.15.2 Employers Encouraged to Include Pregnancy Disability Leave, Transfer, and

Reasonable Accommodation Policies in Employee Handbook. . . . . . . . . . . . . 6406.15.3 Employers Must Translate Notice if Language of Ten Percent

of Workforce Is Language Other Than English. . . . . . . . . . . . . . . . . . . . . . . . . . . 6417 Leave Under the California Family Rights Act (CFRA) and

Federal Family and Medical Leave Act (FMLA) . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6417.1 Overview of Basic Leave Rights Under California Family

Rights Act (CFRA) and Federal Family and Medical Leave Act (FMLA). . . . . . . 6417.1.1 Comparison of Major Differences Between California Family Rights

Act and Federal Family and Medical Leave Act. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6427.1.2 Summary of Major Differences Between California Family

Rights Act and Federal Family and Medical Leave Act. . . . . . . . . . . . . . . . . . . . . . 6437.1.3 Suggested Method for Managing Complex

Leaves Under California and Federal Law. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6447.1.4 Impact of Local Laws — San Francisco Family Friendly

Workplace Ordinance. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6457.2 “Employers” Covered by California Family Rights Act. . . . . . . . . . . . . . . . . . . . . . . . . 646

7.2.1 Comparison of Employer Coverage Requirements Under California and Federal Law. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 648

7.2.2 “Joint Employer” Coverage. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6487.2.3 Coverage of Temporary Placement Agencies as Joint Employers. . . . . . . . . . . . 648

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7.2.4 Coverage of Professional Employer Organizations (PEOs) as Joint Employers. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 649

7.2.5 Duties of the “Primary” and “Secondary” Employers in Joint Employer Relationships. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 649

7.2.6 Employees of Each Joint Employer Counted Toward 50-Employee Coverage Requirement. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 650

7.2.7 Primary Employer’s “Worksite” Used for Measuring 75-Mile Radius Requirement in Joint Employment Situations. . . . . . . . . . . . . . . . . . . . . . . 650

7.2.8 Coverage of “Successor” Employers in Business Purchase and Sale Situations. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 650

7.3 “Employees” Covered by California Family Rights Act. . . . . . . . . . . . . . . . . . . . . . . . . 6517.3.1 Independent Contractors Not Covered. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6517.3.2 Comparison with Employee Coverage Requirements Under Federal Law. . . . 6527.3.3 California Employers Need Not Count Employment Prior to

Seven-Year “Break in Service” Toward Time-In-Service Requirement. . . . . . . . 6527.3.4 Employee May Count Leave Time Toward 12-month Length of

Service Requirement. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6527.3.5 Special Federal Rules for Eligibility of Flight Crews, Teachers, and

Public Sector Employees. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6537.4 Reasons for Leave Authorized by California Family Rights Act. . . . . . . . . . . . . . . . 653

7.4.1 “Child” Defined Broadly Under California Law. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6547.4.2 “Parent” Defined Broadly Under California Law. . . . . . . . . . . . . . . . . . . . . . . . . . . . 6547.4.3 “Spouse” Includes Same-Sex Relationships

Under Federal and California Law. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6547.4.4 Same-Sex Spouses and “Registered Domestic Partners”

Eligible for Leave Under California Law. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6557.4.5 Employees Taking California Leave to Care for “Registered

Domestic Partners” Do Not Exhaust Federal Leave. . . . . . . . . . . . . . . . . . . . . . . . . 6557.5 Reasons for Leave Authorized by Federal Family and Medical Leave Act. . . . . . 656

7.5.1 Leave for “Qualifying Exigencies” in Connection with Military Duty. . . . . . . . . 6567.5.2 Leave to Care for Service Member with Serious Illness or Injury

(“Wounded Warrior” Leave). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6587.5.3 Comparison of Federal “Qualifying Exigency” Leave to California’s

Military Spouse Leave Law. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6597.5.4 Comparison of Federal “Service Member” Leave to California Leave. . . . . . . . 660

7.6 How to Compute 12-Week Leave Entitlement Under California Family Rights Act. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6607.6.1 Computation of Leave When Two “Parents” Work for Same Employer

and Leave Sought for Birth, Adoption, or Foster Care Placement of Child. . . . 6617.6.2 Computation of Leave Period When Employee Works Part-Time Schedule. . 6627.6.3 Computation of Leave Period When Employee Works

“Irregular” Schedule. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6627.6.4 Computation of Leave Period When Holiday Occurs During Leave. . . . . . . . . . 662

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7.6.5 Computation of Leave Period When Employer’s Business Temporarily Ceases. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 663

7.7 Overview of Requirements for “Serious Health Condition” to Support Leave. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6637.7.1 “Inpatient Care” Defined. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6657.7.2 “Continuing Treatment” Defined. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6657.7.3 California Definition of “Serious Health Condition”

Requires Modification to Federal Forms. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6667.7.4 Leave to Care for Family Member Required if Serious

Health Condition “Warrants Participation” of Employee. . . . . . . . . . . . . . . . . . . . 6667.7.5 Exclusion of Certain Leaves from Definition

of “Serious Health Condition.” . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6677.7.6 Treatment for Substance Abuse May Qualify

as Leave for “Serious Health Condition.” . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6687.8 California Duty to Provide Approximately Seven Months of

Leave for Pregnancy Disability and Birth of a Child. . . . . . . . . . . . . . . . . . . . . . . . . . . 6697.8.1 Leave for Birth, Adoption, or Foster Care Placement

Must Be Concluded Within One Year of Birth or Placement. . . . . . . . . . . . . . . . 6717.8.2 Employer May Require Two-Week Leave Minimum

for Birth, Adoption, or Foster Care Placement. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6717.8.3 Special Rules for Measuring 1250 Hour Service Requirement for

Employees Combining Pregnancy Disability Leave (PDL) and California Family Rights Act (CFRA) Leave. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 671

7.8.4 Employee Reinstatement Rights Less Generous Once Employee Takes Leave to Care for Newborn Under California Family Rights Act. . . . . . . . . . . . . 672

7.9 Employees May Take Leave “Intermittently” or on “Reduced Work Schedule” Basis. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6727.9.1 Computation of Intermittent Leave Entitlement. . . . . . . . . . . . . . . . . . . . . . . . . . . . 6727.9.2 Intermittent Leave for Serious Health Conditions Permitted

Only if “Medically Necessary” or Due to Chronic Conditions . . . . . . . . . . . . . . . 6737.9.3 Employer Can Require Employee to

Explain Why Intermittent Leave Necessary. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6747.9.4 Employer Can Require Minimum Leave

Increments for Serious Health Conditions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6747.9.5 Intermittent Leave for Birth, Adoption, or Foster Care Placement

Must Be Taken Within One Year of Birth or Placement. . . . . . . . . . . . . . . . . . . . . 6757.9.6 Employer May Require Two-Week Minimums for Intermittent

Leave for Birth, Adoption, or Foster Care Placement. . . . . . . . . . . . . . . . . . . . . . . 6757.9.7 Employer May Require Transfer of Employee to Different Position

for Intermittent Leave Taken for Planned Medical Treatment. . . . . . . . . . . . . . . 6767.9.8 Employee Duty to Schedule Intermittent Leave for

Planned Medical Treatment to Avoid Disruption. . . . . . . . . . . . . . . . . . . . . . . . . . . 6767.9.9 Employer May Be Required to Treat Scheduled Overtime

Hours as Intermittent Leave to Compute Leave Entitlement. . . . . . . . . . . . . . . . 676

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7.9.10 Exempt Employee Pay May Be “Docked” for Intermittent or Reduced Work Schedule Leave. . . . . . . . . . . . . . . . . . . . . . . . . . . 677

7.9.11 Federal Law Permits Intermittent or Reduced Schedule Leave for Military-Related Leaves. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 677

7.10 Employee Duty to Give Employer Notice of Need for Leave. . . . . . . . . . . . . . . . . . 6777.10.1 Employee Notice Must Be Sufficient to Make Employer

Aware of CFRA/FMLA-Qualifying Leave. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6787.10.2 Employee Must Respond to Employer Request for

Information to Determine if Leave Qualifies. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6797.10.3 Employee Must Give Employer 30 Days’ Notice if Leave Foreseeable. . . . . . 6797.10.4 Employee Notice Required for Military Leave. . . . . . . . . . . . . . . . . . . . . . . . . . . . 6807.10.5 Employee Must Schedule Foreseeable Medical Treatment or

Family Member Supervision to Avoid Disruption to Employer. . . . . . . . . . . . 6807.10.6 Employee Duty to Give Notice as Soon as “Practicable” for

Unforeseeable Leaves. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6807.10.7 Employee Must Follow Employer’s Normal Procedures for

Requesting Time Off. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6817.10.8 Employee “Calling In Sick” Insufficient to Give Notice to Employer. . . . . . . . 6827.10.9 Employer May Not Deny Leave in Emergency or

Unforeseeable Circumstances. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6827.10.10 Employee Must Specifically Reference Qualifying Reason

When Notifying Employer if Multiple Leaves Sought Based on Initial Approval of Leave. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 682

7.10.11 Employer Must Notify Employees of Any Employer Notice Requirement. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 682

7.11 Employer Duty to Give Employee Notice of “Eligibility.” . . . . . . . . . . . . . . . . . . . . . 6837.11.1 Employer Not Required to Determine or Designate Whether

Leave is CFRA/FMLA Leave Until Certification of Health Care Provider Received. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 683

7.12 Employer Right to Written “Certification of Health Care Provider” Verifying Need for Leave and Ability to Return to Work. . . . . . . . . . . 6847.12.1 “Health Care Provider” Broadly Defined Under State and Federal Law. . . . . 6847.12.2 Employer May Require Initial Certification at Time Employee Seeks Leave. 6857.12.3 Employee Must Complete and Return Initial Certification Form

Within 15 Days of Employer Request. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6857.12.4 Certification of Leave for Employee’s Serious Health Condition

Requires Specific Leave-Qualifying Information. . . . . . . . . . . . . . . . . . . . . . . . . . 6867.12.5 Certification for Leave to Care for Family Member Requires Serious

Health Condition Plus Need for Participation of Employee. . . . . . . . . . . . . . . 6877.12.6 Initial Certification for Intermittent Leave

Must Establish Medical “Necessity” for Leave. . . . . . . . . . . . . . . . . . . . . . . . . . . . 6887.12.7 Employer May Require Certification to Verify

“Qualifying Exigency” to Support Military Leave. . . . . . . . . . . . . . . . . . . . . . . . . 689

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7.12.8 Employer May Require Certification to Verify Need to Care for Covered Service Member. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 690

7.12.9 Employer Must Accept “ITO” or “ITA” Documents in Lieu of Certification to Verify Need for Covered Service Member Leave. . . . . . . . . . 692

7.12.10 Employer Right to Second and Third Opinions Challenging Certification of Employee’s Serious Health Condition. . . . . . . . . . . . . . . . . . . 693

7.12.11 Employee Duty to Release Medical Information to Health Care Provider Providing Second or Third Opinion. . . . . . . . . . . . . . . 694

7.12.12 California Prohibits Second or Third Opinions Challenging Family Member Certifications for Serious Health Conditions. . . . . . . . . . . 694

7.12.13 Employer Right to Require “Recertification” Upon Expiration of Initial Certification. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 694

7.12.14 Employer May Deny Continued Leave if Recertification Not Produced Within 15 Days of Request. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 696

7.12.15 Employer May Not Require Recertification for Military Leave Under Federal FMLA. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 697

7.12.16 Employer Right to Require Periodic Reports from Employee During Leave to Determine Intent to Return to Work. . . . . . . . . . . . . . . . . . . 697

7.12.17 Employer Right to Require Certification of Fitness to Return to Duty (But Not Fitness Examination) as Condition of Reinstatement. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 697

7.12.18 Disability Law Restrictions on Employer Requirement of Employee Fitness to Return to Duty. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 699

7.12.19 Employer Right to Challenge “Incomplete” or “Insufficient” Health Care Provider Certification Forms. . . . . . . . . . . . . . . . . 699

7.12.20 Employer Right to Contact Health Care Provider to “Authenticate” (But Not “Clarify”) Certification Forms. . . . . . . . . . . . . . . . . . 700

7.12.21 Employer May Require Additional Information to Determine Disability Insurance Coverage, Workers’ Compensation Benefits, or Accommodation Under Disability Laws. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 701

7.13 Employer Duty to Give Employee Notice of “Designation” That Leave Qualifies as FMLA/CFRA Leave Within Five Business Days. . . . . . . . . . . . . . . . . . 7027.13.1 Employer Duty to Specify in Notice Amount of Leave to Be

Deducted from CFRA/FMLA Entitlement. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7037.13.2 Employer May Delay Notice of Leave to Be Deducted from

Employee Leave Bank Until Employee Specifies Amount of Leave to Be Taken. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 703

7.13.3 Notice of Certification of Fitness to Return to Duty Requirement Must Be Given with Designation Notice. . . . . . . . . . . . . . . . . . . . 704

7.13.4 Retroactive Designation Permitted Only if No Harm to Employee. . . . . . . . . 7047.13.5 California Employers Must Follow Federal Designation Rule. . . . . . . . . . . . . . 705

7.14 Employer Duty to Continue Health Insurance Payments During Leave on Same Terms as Before Leave Began. . . . . . . . . . . . . . . . . . . . . . . . . 7057.14.1 “Group Health Plan” Includes Dental, Eye, Mental

Health, Dependent and Other Coverage. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 706

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7.14.2 Employer Duty to Give Written Notice to Employees of Payments Required. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 707

7.14.3 Employer May Discontinue Health Coverage if Employee Premiums Are More Than 30 Days Late. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7077.14.4 Employer Must Reinstate Health Coverage Upon Return

from Leave Even if Employee Failed to Pay Premiums. . . . . . . . . . . . . . . . . . . . 7087.14.5 Employer May Recover Coverage Premiums From

Employee for Failure to Return from Leave. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7087.14.6 Employer May Require Proof of Inability to Return to Work

as Condition to Forgiveness of Premium Repayment Obligation. . . . . . . . . . . 7097.14.7 Benefits Continuation Required for Up to 26 Weeks

for Military Service Leave Under Federal FMLA. . . . . . . . . . . . . . . . . . . . . . . . . 7107.14.8 Employer Duty to Continue Health Benefits on Non-Discriminatory

Basis Where Leave Continues After CFRA/FMLA Entitlement Ends. . . . . . 7107.15 The Employee’s Right to Use Paid Vacation and Sick Time During Leave. . . . . . 710

7.15.1 Employer Can Require Employee to Use Sick Leave for Employee’s Own Serious Health Condition. . . . . . . . . . . . . . . . . . . . . . . . . . . 711

7.15.2 Employer May Require Employee to Use Vacation or PTO Only if Employee Specifies CFRA Purpose for Leave. . . . . . . . . . . . . . . . 712

7.15.3 Employer Cannot Require Employee Disabled by Pregnancy to Use Vacation or PTO. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 712

7.15.4 Employer Can Require Employees Disabled by Pregnancy to Use Paid Sick Leave. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 712

7.15.5 Employer Can Require Public Sector Employees to Use “Comp Time.” . . . . 7127.15.6 Comparison with Federal Standard for Use of Accrued Paid Leave. . . . . . . . 712

7.16 Coordination of Disability and Workers’ Compensation Leave Benefits with CFRA/FMLA Leave. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7147.16.1 Employers May Run Disability Plan Insurance, State Disability

Insurance, and State Paid Family Leave Benefits Concurrently with FMLA/CFRA Leave. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 714

7.16.2 Employers May Run Workers’ Compensation Leave Concurrently with FMLA/CFRA Leave. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 71

7.17 Employee Right to Seniority, Bonus, Award, and Benefit Plan Participation During Leave. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7157.17.1 Employee Must Accrue Seniority and Participate in Benefit Plans

During Leave on Non-Discriminatory Basis. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7157.17.2 Employee Leave is Not “Break in Service” Under Collective

Bargaining Agreement or Benefit Plans. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7167.17.3 Employee Right to Unconditional Bonuses and Other Payments

Made During Leave. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7167.17.4 No Employee Right to Bonuses or Other Payments for Hours

Worked, Products Sold, or Perfect Attendance. . . . . . . . . . . . . . . . . . . . . . . . . . . 7167.17.5 Employer Duty to Continue Employee Enrollment in

Retirement, Insurance, and Other Benefit Plans During Leave on Non-Discriminatory Basis. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 717

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7.18 Employer Duty to Reinstate Employee to Same or Comparable Job When FMLA/CFRA Leave Ends. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7177.18.1 Employer Must Give Notice to Employee of

Guarantee of Reinstatement at Time Leave is Granted. . . . . . . . . . . . . . . . . . . . 7197.18.2 Employee Right to Restoration of Seniority and Other

“Employment Benefits” In Effect Prior to Leave. . . . . . . . . . . . . . . . . . . . . . . . . . 7207.18.3 No Employer Duty to Reinstate if Employee Cannot

Perform an Essential Job Function. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7207.18.4 No Employer Duty to Reinstate if Employee’s Job or Benefits

Would Have Been Lost or Changed During Leave. . . . . . . . . . . . . . . . . . . . . . . . 7217.18.5 No Employer Duty to Reinstate a “Key” (Highly Compensated)

Employee If Substantial Economic Harm Would Result. . . . . . . . . . . . . . . . . . . 7227.18.6 Employer Right to Require “Certification of Fitness to Return

to Duty” (But Not Examination) as Condition of Reinstatement. . . . . . . . . . . 7247.18.7 Employee Rights Affecting Reinstatement More Limited

after Return from California Family Rights Act Leave than Pregnancy Disability Leave. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 724

7.18.8 Employee Termination Permitted For Fraudulently Obtained Leave. . . . . . . . 7247.19 Employer Retaliation and Interference with Leave Rights Prohibited. . . . . . . . 725

7.19.1 Employer Interference with Employee Leave Rights Prohibited. . . . . . . . . . . 7257.19.2 Employers Prohibited from Counting

Time Off Under “No Fault” Leave Policy. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7267.19.3 Employers Prohibited from Obtaining

Waiver of Employee’s Future Leave Rights. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7267.19.4 Employers Prohibited from Counting “Light Duty” Under

Workers’ Compensation Laws Against Leave Entitlement. . . . . . . . . . . . . . . . . 7267.20 Employer Duty to Post Required FMLA/CFRA Notice. . . . . . . . . . . . . . . . . . . . . . . 727

7.20.1 Employer Duty to Incorporate California Family Rights Act Policy in Employee Handbook. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 727

7.20.2 Employers Encouraged But Not Required to Distribute Notice and Brochure. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 727

7.20.3 Employers Must Post Translated Notice if Ten Percent of Workforce Speaks Language Other Than English. . . . . . . . . . . . . . . . . . . . . . 727

7.20.4 Required Federal Family and Medical Leave Act Posting. . . . . . . . . . . . . . . . . . 7278 Leave to Accommodate a Disability . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 728

8.1 The Employer’s Duty to Provide Leave to Accommodate a Disability. . . . . . . . . . 7288.2 The Employer’s Duty to Modify Leave and Attendance Policies. . . . . . . . . . . . . . . 729

8.2.1 Duty to Modify Leave and Attendance Policies. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7298.2.2 Duty to Modify “Maximum Leave” and “No Fault” Leave and

Attendance Policies to Provide Accommodation. . . . . . . . . . . . . . . . . . . . . . . . . . . 7298.3 Employer Duty to First Follow CFRA/FMLA or Workers’ Compensation

Laws When Leave or Modified Work Schedule Requested. . . . . . . . . . . . . . . . . . . . . 731

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8.4 Employer Duty to Engage in Interactive Process in Response to Leave Request . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 733

8.5 Employer Limitations on Communications to Employee During Leave . . . . . . . . 7348.6 Factors Determining Undue Hardship for Leaves of Absence . . . . . . . . . . . . . . . . . . 7358.7 Employer Duty to Consider Reassignment if

Leave or Reinstatement Cannot Be Granted . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7369 Time Off for Work-Related Injuries Under

California Workers’ Compensation Laws . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7369.1 Overview of California Workers’ Compensation Benefits for

Work-Related Injuries and Illnesses. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7369.2 Employer Duty to Provide “Medical Care” for Work-Related Injury

or Illness. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7379.2.1 Employee Right to Pre-Designate Personal Physician

to Treat Work-Related Injury or Illness. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7389.2.2 Employer Duty to Provide Form to Employee at

Time of Hire for Designation of Personal Physician. . . . . . . . . . . . . . . . . . . . . . . . . 7389.3 Employer Duty to Provide Time Off for Work-Related Injuries

and Reinstate Employee Upon Conclusion of Leave. . . . . . . . . . . . . . . . . . . . . . . . . . . 7389.4 Employer Duty to Provide Wage Replacement Benefits for

“Temporary Disability” Caused By Work-Related Injury or Illness. . . . . . . . . . . . . 7419.5 Employer Duty to Provide Benefits for “Permanent

Disability” Caused by Work-Related Injury or Illness. . . . . . . . . . . . . . . . . . . . . . . . . 7429.5.1 Employers with More Than 50 Employees Must Offer Regular, Modified,

or Alternative Work to Returning Employees for 12 Months. . . . . . . . . . . . . . . . 7429.6 Employer Duty to Provide Worker Retraining Benefits. . . . . . . . . . . . . . . . . . . . . . . . 7439.7 Employer Duty to Provide Death Benefit. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 744

10 Time Off to Accommodate Religious Practices Under California Anti-Discrimination Laws . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 74410.1 Employer Duty to Provide Time Off to Accommodate

Religious Beliefs and Observances. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 74411 Leave for Treatment in Drug or

Alcohol Rehabilitation Programs. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 74411.1 California Duty to Provide Time Off for Drug or Alcohol Rehabilitation. . . . . 74411.2 Termination Permitted for Current Drug or Alcohol Use. . . . . . . . . . . . . . . . . . . . 74411.3 Employer Duty to Safeguard Employee Privacy. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 74511.4 Employee Entitled to Use Sick Leave During Time Off. . . . . . . . . . . . . . . . . . . . . . . 74511.5 Representative Actions and Complaints with California

Labor Commissioner Authorized for Violations. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 74512 Leave to Participate in Adult Literacy Programs . . . . . . . . . . . . . . . . . . . . . . . 745

12.1 California Duty to Provide Time Off for Enrollment in Literacy Programs. . . 745

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12.2 Employer Duty to Safeguard Employee Privacy. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 74512.3 Termination Based on Illiteracy Prohibited. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 74512.4 Representative Actions Authorized for Violations. . . . . . . . . . . . . . . . . . . . . . . . . . . 745

13 Leave to Participate in Civic Activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 74613.1 Employer Duty to Provide Paid Time Off to Vote. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 746

13.1.1 Paid Time Off Limited to Two Hours. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 74613.1.2 Time Off to Vote Limited to Beginning

or End of Employee’s Regular Shift. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 74613.1.3 Employee Duty to Give Two Working Days’ Notice of Need for Time Off. . 74613.1.4 Employers Must Post Required Notice Ten Days Before Election. . . . . . . . . . 74613.1.5 Time Off and Posting Requirements Apply

to Private and Public Sector Employers. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 74613.2 Employer Duty to Provide Time Off to Serve as Election Official. . . . . . . . . . . . . 74613.3 Employer Duty to Provide Time Off for Jury Duty. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 747

13.3.1 Employee Pay During Leave for Jury Duty. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 74713.3.2 Employee Right to Use Vacation, Personal

Time, and “Comp Time” for Jury Duty. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 74713.3.3 Damages for Discrimination Against Employees Serving on Jury Duty. . . . . 74713.3.4 Representative Actions and Labor Commissioner Complaints

Authorized for Violations. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 74713.4 Employer Duty to Provide Time Off to Serve as Witness. . . . . . . . . . . . . . . . . . . . . 748

13.4.1 Employee Pay During Leave to Serve as Witness. . . . . . . . . . . . . . . . . . . . . . . . . 74813.4.2 Employee Right to Use Vacation, Personal,

and “Comp Time” for Leave. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 74813.4.3 Employee Remedies for Violations. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 74813.4.4 Representative Actions and Labor Commissioner Complaints

Authorized for Violations. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 74813.5 Employer Duty to Provide Time Off for Emergency Service as Volunteer

Firefighter, Reserve Peace Officer, or Emergency Rescue Personnel. . . . . . . . . . 74913.5.1 Employee Remedies for Violations. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 74913.5.2 Civil Actions Permitted for Violations. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 749

13.6 Employer Duty to Provide Time Off for Volunteer Firefighter, Reserve Peace Officer, and Emergency Rescue Personnel Training. . . . . . . . . . . 74913.6.1 Employee Remedies for Violations. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 74913.6.2 Representative Actions and Labor Commissioner Complaints

Authorized for Violations. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 75014 California Military Service Leave . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 750

14.1 California Leave for Military Service. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 75014.1.1 Comparison with Federal Uniformed Services Employment

and Reemployment Rights Act (USERRA) Leave. . . . . . . . . . . . . . . . . . . . . . . . . 750

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14.1.2 USERRA Covers All Employers and Most Employees. . . . . . . . . . . . . . . . . . . . . 75014.1.3 Required “Uniformed Service” Includes Leave

to Serve or Train in Most Branches of Military. . . . . . . . . . . . . . . . . . . . . . . . . . . 75014.1.4 Employee Duty to Provide Notice of Intent to Use USERRA Leave. . . . . . . . 75114.1.5 Employee Duty to Provide Notice Within Specified Deadlines of

Intent to Return from Leave. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 75114.1.6 Employer Duty to Continue Seniority

and Most Benefits During USERRA Leave. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 75114.1.7 Employer Duty to Reinstate Employees Returning from USERRA Leave. . . 75114.1.8 Employer Duty to Retain Employee After Reinstatement for Up to

One Year. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 75214.1.9 Civil Actions and Department of Labor Complaints Available for

USERRA Violations. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 75214.2 California “Military Spouse” Leave. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 752

14.2.1 Employers Subject to Leave Requirement. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 75314.2.2 Employees Eligible for Leave Must Work 20 or More Hours Per Week. . . . . 75314.2.3 “Qualified Members” of Armed Services Include Persons in Armed

Forces, National Guard, and Reserves. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 75314.2.4 Employee Duty to Provide Notice of Leave Within Two Business

Days of Receipt of Notice. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 75314.2.5 Employee Required to Provide Written Certification. . . . . . . . . . . . . . . . . . . . . 75314.2.6 Leave May Not Affect Employee Benefits. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 75314.2.7 Retaliation Prohibited. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 754

14.3 California Civil Air Patrol Leave. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 75415 Leave to Participate in Child’s School

Activities or for Suspension of a Child . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 75415.1 Employer Duty to Provide Time Off for Participation in Child’s

School Activities. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 75415.1.1 Only Employers with 25 or More Employees Subject to Leave

Requirements. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 75415.1.2 Employee Duty to Provide Reasonable Notice to Qualify for Time Off. . . . . 75415.1.3 Employee Time Off Limited to 40 Hours

Annually and Eight Hours Monthly. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 75515.1.4 Leave Limited to One Parent if Both Work at Same Employer Worksite. . . 75515.1.5 Employee Required to Use Vacation, Personal Leave, and “Comp Time”

During Leave. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 75515.1.6 Employer May Require Documentation to Verify Basis for Leave. . . . . . . . . . 75515.1.7 Employee Remedies for Violations. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 75515.1.8 Representative Actions Permitted for Violations. . . . . . . . . . . . . . . . . . . . . . . . . 755

15.2 California Duty to Provide Employee Time Off to Appear in Classroom of Suspended Child. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 75515.2.1 Employee Remedies for Violations. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 756

Contents: Chapter 5: Time Off from Work lv

15.2.2 Representative Actions Authorized for Violations. . . . . . . . . . . . . . . . . . . . . . . . 75616 Leave for Victims of Domestic Violence, Sexual Assault

and Stalking . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 75616.1 California Duty to Provide Time Off for Domestic Violence,

Sexual Assault, and Stalking Victims. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 75616.1.1 Duty to Provide Time Off Applies Only to Employers With

25 or More Employees. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 75716.1.2 Duty to Provide Time Off to Obtain Restraining

Order Applies to All Employers Regardless of Size. . . . . . . . . . . . . . . . . . . . . . . 75716.1.3 Duty to Provide Written Notice of Rights to Employee

at Time of Hire and Upon Request. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 75716.2 Employee Duty to Provide Notice Where Leave Foreseeable. . . . . . . . . . . . . . . . . 75716.3 Employee Duty to Provide “Certification” for Unscheduled Absence. . . . . . . . . 75716.4 Employees May Use Vacation, Personal, and “Comp Time” for Leave. . . . . . . . 75816.5 Employer Duty to Maintain Confidentiality of Victims. . . . . . . . . . . . . . . . . . . . . . . 75816.6 Employer Duty to Provide Reasonable Accommodation to

Ensure Safety of Victims. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 75816.6.1 No Duty to Provide Accommodation if Victim Does Not Disclose

Status or Accommodation Would Cause Undue Hardship. . . . . . . . . . . . . . . . . 75816.6.2 Employer May Require Written Certification From Employee to

Support Accommodation.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 75916.7 Employee Remedies for Violations. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 75916.8 Civil Actions and Labor Commissioner Complaints Permitted

for Violations. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 75917 Leave for Victims of Serious or Violent Felonies . . . . . . . . . . . . . . . . . . . . . . . 760

17.1 California Duty to Provide Crime Victims Time Off to Attend Judicial Proceedings. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 760

17.2 Employer May Not Discharge or Discriminate Against Employee Taking Leave. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 761

17.3 Employee Duty to Provide Notice to Employer Before Leave Begins. . . . . . . . . . 76117.4 Employee Duty to Provide Verifying Documentation if Leave Unforeseeable. 76117.5 Employees May Use Vacation, Personal, and “Comp Time” for Leave. . . . . . . . 76217.6 Employer Duty to Maintain Confidentiality of Victims. . . . . . . . . . . . . . . . . . . . . . . 76217.7 Civil Actions and Labor Commissioner Complaints

Authorized forViolations. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 76218 Paid Leave for Organ and Bone Marrow Donation . . . . . . . . . . . . . . . . . . . . . 762

18.1 Employer Duty to Provide Paid Leave for Organ and Bone Marrow Donation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 762

18.2 Employee Duty to Provide Written Verification of Medical Necessity for Donation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 762

lvi Contents: Chapter 6: Wages, Hours, and Working Conditions

18.3 Effect of Leave on Employee Benefits and Seniority. . . . . . . . . . . . . . . . . . . . . . . . . . 76318.4 Effect of Collective Bargaining Agreement on Leave. . . . . . . . . . . . . . . . . . . . . . . . . 76318.5 Employer May Require Employees to Use

Vacation and Sick Leave During Time Off. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 76318.6 Employer Prohibited From Running Leave

Concurrently with CFRA/FMLA Leave. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 76318.7 Employer Duty to Reinstate Employee to Same

or Equivalent Position Upon Expiration of Leave. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 76318.8 Civil Actions Against Employers Authorized for Violations. . . . . . . . . . . . . . . . . . 763

19 State Insurance Programs Providing Wage Replacement for Employees on Leave . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 76419.1 Overview of California State Disability Insurance (SDI) Program. . . . . . . . . . . . 764

19.1.1 SDI Program Covers Individuals with Broad Range of “Disabilities.” . . . . . . . 76419.1.2 Eligibility Requirements for SDI Benefits. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 76419.1.3 Benefits Available Under SDI Program. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 765

19.2 California’s Family Temporary Disability Insurance (“Paid Family Leave”) Program. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 76519.2.1 San Francisco Paid Parental Leave Ordinance Requires Employers to Pay

Difference Between State FTDI and Employee Weekly Salary. . . . . . . . . . . . . . 76620 Recordkeeping and Posting Requirements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 767

20.1 California and Federal Posting Requirements. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 76720.2 California and Federal Recordkeeping Requirements. . . . . . . . . . . . . . . . . . . . . . . . 769

20.2.1 Recordkeeping Requirements for Federal Family and Medical Leave Act (FMLA). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 769

20.2.2 Recordkeeping Requirements for California Family Rights Act (CFRA) and Pregnancy Disability Leave Statute. . . . . . . . . . . . . . . . 770

20.2.3 Recordkeeping Requirements for State and Local Paid Sick Leave Laws. . . . 770Endnotes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 771

Ε Chapter 6: Wages, Hours, and Working Conditions 819

1 California Wage and Hour Law . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8191.1 Chapter Overview. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 819

2 Sources of Law Regulating Employee Wages, Hours, and working Conditions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 820Table 3: Summary of Major Topics Covered by California Labor Code . . . . . . . . . 820

2.1 The California Labor Code. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8202.2 California Wage Orders. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 821Table 4: Summary of California Wage Orders by Industry and Occupation . . . . . 821

Contents: Chapter 6: Wages, Hours, and Working Conditions lvii

2.2.1 Overview of Subjects Covered by California Wage Orders. . . . . . . . . . . . . . . . . . 8232.2.2 Determining Which Wage Order Applies. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8252.2.3 Legal Significance of California Wage Orders. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8262.2.4 Employer Liability for Violations of Wage Orders. . . . . . . . . . . . . . . . . . . . . . . . . . 826

2.3 Federal Wage and Hour Laws. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8272.4 Employer Duty to Follow Law More Protective of Employee When

Both California and Federal Laws Apply. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8282.5 Application of California Wage and Hour Law to Non-Residents

Working In California. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8292.6 Application of California Wage and Hour Law to California

Employees Working in Other States. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8293 Employer and Employee Coverage Requirements . . . . . . . . . . . . . . . . . . . . . . . . . 830

3.1 California Employer Coverage Requires Employment Relationship. . . . . . . . . . . 8303.2 Federal Fair Labor Standards Act (FLSA) Coverage Requires

Employment Relationship and Interstate Commerce. . . . . . . . . . . . . . . . . . . . . . . . . . . 8313.2.1 Federal Fair Labor Standards Act Coverage

Requires Employment Relationship. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8313.2.2 Federal Fair Labor Standards Act Coverage Requires Interstate

or Foreign Commerce. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8313.2.3 Federal Commerce Test Can Be Met on “Individual” Basis. . . . . . . . . . . . . . . . . . 8323.2.4 Meeting Federal Commerce Test on “Enterprise” Basis. . . . . . . . . . . . . . . . . . . . . 833

3.3 California Public Sector Employers Subject to Overtime and Minimum Wage Provisions of Federal Fair Labor Standards Act. . . . . . . . . . . . . . 8333.3.1 Public Sector Employers Subject to Most California Wage Payment Rules. . . 834

3.4 Personal Liability for Unpaid Wages Under California Law. . . . . . . . . . . . . . . . . . . . 8343.4.1 Personal Liability for Unpaid Wages Under Federal Law. . . . . . . . . . . . . . . . . . . . 835

3.5 Employment Relationships Covered by the California Labor Code and Wage Orders. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8353.5.1 Joint Employment Relationships Covered. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8373.5.2 Staffing Agency and Other “Labor Contractor” Relationships Covered. . . . . . 8383.5.3 Relationships Between Employer and Individuals Not “Formally”

Hired Covered. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8383.5.4 Relationships Between Employer and Employees of Misclassified

Independent Contractors Covered. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8383.5.5 Relationships Between Employers and Undocumented Workers Covered. . . . 839

4 Payment of Regular Wages . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8394.1 California Labor Code Defines “Wages” Broadly. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8394.2 Employer Duty to Provide Individualized California Wage “Notice”

to Employee at Time of Hire. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8394.3 Employer Duty to Pay Regular Wages at Least Twice Monthly. . . . . . . . . . . . . . . . . 839

lviii Contents: Chapter 6: Wages, Hours, and Working Conditions

4.4 Employer Duty to Pay Regular Wages by Deadlines Specified in Labor Code. . 8404.4.1 Pay Deadlines for Twice Monthly Payroll Periods. . . . . . . . . . . . . . . . . . . . . . . . . . . 8404.4.2 Pay Deadlines for Weekly and Biweekly (Two Week) Payroll Periods. . . . . . . . 8404.4.3 Pay Deadlines Determined By Date Wages Paid, Not When Wages

Mailed or Otherwise “Issued.” . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8404.5 Employer Duty to Post Notice of Day, Time, and Place for Payment

of Wages. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8414.6 Exceptions to California Pay Deadline Requirements for Payment

of Regular Wages. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8414.6.1 Exception for Employees Paid in Advance on a Weekly Basis. . . . . . . . . . . . . . . . 8414.6.2 Exception for Payment of Bonuses. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8414.6.3 Exception for Payment of Commissions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8424.6.4 Exception for Exempt Executive, Administrative,

and Professional Employees. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8434.6.5 Exception for Wage Payments for “Unscheduled” Overtime and

Other Hours of Work. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8444.6.6 Exception for Wage Payments to Union Employees. . . . . . . . . . . . . . . . . . . . . . . . . 8454.6.7 Exception for Wage Payments to Striking Employees. . . . . . . . . . . . . . . . . . . . . . . 8454.6.8 Exception for Wage Payments to Employees of “Temporary

Services Employers.” . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8454.6.9 Exception for Wage Payments to Employees Provided Room and Board. . . . . 8464.6.10 Exception for Wage Payments to Employees of Farm Labor Contractors. . . 8474.6.11 Exception for Wage Payments to Agricultural Employees. . . . . . . . . . . . . . . . . 8474.6.12 Exception for Commissions Paid by Licensed Vehicle Dealers. . . . . . . . . . . . . 847

4.7 Holiday Extends Deadline for Payment of Wages. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8474.8 Required Place for Payment of Wages. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 848

4.8.1 Required Place for Wage Payment During Strike. . . . . . . . . . . . . . . . . . . . . . . . . . . 8484.8.2 Required Place for Wage Payment if More Than One Employer

Paying Wage. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8484.9 Overview of Employer Duty to Set Wages Without Regard to Sex, Race

or Ethnicity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8494.9.1 Employer Duty to Pay Same “Wage Rates” to Employees

Regardless of Sex, Race or Ethnicity for “Substantially Similar” Work. . . . . . . . 8504.9.2 Different Wage Rates Permitted Based on Seniority, Merit, Quantity

or Quality of Production, or “Factors Other Than Sex, Race or Ethnicity.” . . . . 8524.9.3 Employers May Not Prohibit Employees From Disclosing Wages. . . . . . . . . . . . 8544.9.4 Employer Duty To Retain Wage and Job Classification Records for Three Years. . .

854

4.9.5 Employer Civil Liability for Wage Violations and Retaliation. . . . . . . . . . . . . . . . . 8544.10 Employer Liability for Failure to Pay Regular Wages as Required by Law. . . . 855

Contents: Chapter 6: Wages, Hours, and Working Conditions lix

4.10.1 Employer Civil Liability for Failure to Pay Regular Wages as Required by Law. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 855

4.10.2 Misdemeanor Liability for Officers, Managers, Agents, and Others. . . . . . . . 8564.10.3 Misdemeanor and Civil Liability for Willful Refusal to Pay Wages

as Required by Statute. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8564.10.4 Private Civil Actions Available to Recover Wages and Penalties Due. . . . . . . 8574.10.5 Employer and Individual Liability for Inaccurate Wage Statements. . . . . . . . 8574.10.6 Employer and Individual Liability Based on Failure to Pay Wages Due

at Termination. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8584.10.7 Private “Representative” Actions Authorized Under

California’s Private Attorneys General Act (PAGA). . . . . . . . . . . . . . . . . . . . . . . 8584.10.8 Employer and Individual Liability Where Unpaid Wages Violate

Minimum Wage or Overtime Laws. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8594.10.9 Farm Labor Contractor Successor Liability. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 860

5 Payment of Final Wages . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8605.1 Employer Duty to Pay Final Wages Immediately Upon Discharge. . . . . . . . . . . . . 8605.2 Exceptions to Requirement of Immediate Payment on Discharge. . . . . . . . . . . . . . 861

5.2.1 Exception for Payment of Final Bonuses and Commissions. . . . . . . . . . . . . . . . . 8615.2.2 Exception for Sale of a Business. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8615.2.3 Exception for Layoffs Where Employee Scheduled to Return

Within Pay Period. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8625.2.4 Exception for Temporary Services Employees. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8625.2.5 Exception for Valid “Comp Time” Policies. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8635.2.6 Exception for Certain Seasonal Employees. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8645.2.7 Exception for Employees in Motion Picture Production or Broadcasting. . . . . 8645.2.8 Exception for Employees Engaged in Oil Drilling. . . . . . . . . . . . . . . . . . . . . . . . . . . 8655.2.9 Exception for On-Site Employees at Concerts or Theatrical Events. . . . . . . . . . 8655.2.10 Exception for Public Sector Employers. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 865

5.3 Employer Duty to Pay Final Wages Within 72 Hours of Resignation. . . . . . . . . . . 8655.3.1 Exception Where Bonus or Commission Not Ascertainable

at Time of Resignation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8665.3.2 Exception for Temporary Services Employees. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8675.3.3 Exception for Employees in Motion Picture Production or Broadcasting. . . . . 8675.3.4 Exception for Public Sector Employers. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 867

5.4 Employer Duty to Pay Vacation Wages Upon Discharge or Resignation. . . . . . . 8675.4.1 Statute of Limitations for Vacation Pay Claims. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 868

5.5 Required Place for Payment of Final Wages. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8695.6 Employer Penalties for Late Payment of Final Wages. . . . . . . . . . . . . . . . . . . . . . . . . . 869

5.6.1 Types of Final “Wages” Triggering Penalties. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8695.6.2 Completion or Expiration of Assignment Can Trigger Penalties. . . . . . . . . . . . . 870

lx Contents: Chapter 6: Wages, Hours, and Working Conditions

5.6.3 Penalties Stop When Wages Are Paid, Employee Sues or 30 Days Expires. . . . 8705.6.4 Penalties Stop When Employee Avoids, Refuses, or Fails to Accept Payment. 8705.6.5 Waiting Time Penalties Not Recoverable Unless Employer Acts “Willfully.” . . 8715.6.6 Determining Date When Wages Are Due to Calculate Penalties. . . . . . . . . . . . . 8725.6.7 Determining When Bonuses and Commissions Are Due to

Calculate Penalties. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8725.7 Formula for Computing Waiting Time Penalties. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 873

5.7.1 Penalty Formula for Non-Exempt Employees Paid Hourly Wage. . . . . . . . . . . . 8735.7.2 Penalty Formula for Employees Working Irregular Overtime Hours.. . . . . . . . . 8735.7.3 Penalty Formula for Employees Working Regularly Scheduled

Overtime Hours. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8745.7.4 Penalty Formula for Employees Working Part-time Hours. . . . . . . . . . . . . . . . . . . 8745.7.5 Penalty Formula for Exempt Employees Paid on Salary. . . . . . . . . . . . . . . . . . . . . . 8755.7.6 Penalty Formula for Employees Paid on Commission. . . . . . . . . . . . . . . . . . . . . . . 8755.7.7 Penalty Formula for Employees Receiving Base Pay Plus Commissions. . . . . . . 876

5.8 Waiting Time Penalty Rules for Temporary Service Employees. . . . . . . . . . . . . . . 8765.9 Waiting Time Penalty Rules for Public Sector Employers. . . . . . . . . . . . . . . . . . . . . . 8775.10 Employer Liability for Violations of Final Wage Payment Statutes. . . . . . . . . . 877

5.10.1 Private Civil Actions Available to Recover Unpaid Wages and Penalties. . . . 8775.10.2 Personal Liability for Failure to Pay Final Wages Timely. . . . . . . . . . . . . . . . . . . 8785.10.3 Private “Representative” Actions Authorized Under California’s

Private Attorneys General Act (PAGA). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8785.10.4 Private Civil Actions for Waiting Time Penalties Subject to Three

Year Statute of Limitations. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8805.10.5 Liability Based on Inaccurate Wage Statements. . . . . . . . . . . . . . . . . . . . . . . . . . 880

6 Required Form for Payment of Wages in California . . . . . . . . . . . . . . . . . . . . . 8806.1 Required Form for Payment of Wages. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 880

6.1.1 Issuance of Stock In Lieu of Wages Generally Restricted.. . . . . . . . . . . . . . . . . . . . 8816.1.2 California Counties, Cities, and School Districts Not Subject to

Required Form for Payment of Wages. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8826.1.3 Employer Liability for Violations of Required Form for Payment of Wages. . . 8826.1.4 Misdemeanor Liability for Officers, Managers, Agents, and Others. . . . . . . . . . 8826.1.5 Private Civil Actions Available to Recover Wages and Penalties. . . . . . . . . . . . . 8826.1.6 Private “Representative” Actions Authorized Under California’s

Private Attorneys General Act (PAGA). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8826.2 Requirements for Direct Deposit of Regular and Final Wages. . . . . . . . . . . . . . . . . 8846.3 Requirements for Use of “Payroll Cards” for Payment of Wages. . . . . . . . . . . . . . . 884

6.3.1 Common Types of Employer “Payroll Card” Systems. . . . . . . . . . . . . . . . . . . . . . . 8846.3.2 Validity of “Payroll Card” Systems Under California Law. . . . . . . . . . . . . . . . . . . . 885

6.4 Liability for Payment of Wages with Bad Check. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 886

Contents: Chapter 6: Wages, Hours, and Working Conditions lxi

6.5 Procedure for Payment of Wages if Worker Cannot Be Found. . . . . . . . . . . . . . . . . 8876.6 Procedure for Payment of Wages of Deceased Worker. . . . . . . . . . . . . . . . . . . . . . . . 887

7 Employer “Comp Time” Policies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8877.1 “Compensating Time Off” Policies. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8877.2 Requirements for Plans Providing Comp Time to Non-Exempt

Employees in Lieu of Overtime Pay. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8877.3 Comp Time In Lieu of Overtime Pay Expressly Prohibited in

Certain Industries and Occupations. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8897.4 Comp Time Programs for Exempt Employees. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 889

8 Prohibited Conditions on Payment of Wages . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8898.1 Prohibited Conditions on Payment of Wages. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8898.2 Employer Duty to Pay Wages Concededly Due Without Condition. . . . . . . . . . . . 890

8.2.1 Agreements to Pay (and Accept) Less Than Wages Concededly Due Violates California Labor Code. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 890

8.3 Employer Release of Claims Invalid for Wages Owed. . . . . . . . . . . . . . . . . . . . . . . . . . . 8918.4 Private Agreements Modifying Pay Requirements of Labor Code

Prohibited. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8929 Deductions from Wages . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 892

9.1 Deductions From Wages Generally Prohibited. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8929.1.1 Special California Statutes Prohibiting

“Deceptive” Wage Payment Practices. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8939.2 Employer May Recoup from Employee Amounts Other Than “Wages.” . . . . . . . 8939.3 Deductions from Wages Permitted for Amounts Authorized or Required

by Law. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8969.3.1 Certain Deductions Permitted with Employee’s Written Consent. . . . . . . . . . . 896

9.4 Deductions from Wages for Breakage, Cash Shortages, and Other Losses. . . . . 8979.4.1 Deductions Prohibited for Losses Caused by Mistake or Simple Negligence. . 8979.4.2 Deductions Permitted for Losses Caused by Dishonest,

Willful, or Grossly Negligent Acts of Employee. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8979.5 Deductions From Wages for Repayment of Loans and Other Debts. . . . . . . . . . . 898

9.5.1 “Balloon” Payment Deductions from Final Paychecks Prohibited. . . . . . . . . . . . 8999.5.2 Court Ordered Withholdings from Wages Permitted to Satisfy

Debts to Third Parties (“Garnishments”). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8999.6 Deductions to Recover Overpayment of Wages. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9009.7 Deductions for Wage Advances Permitted if Wages Already Earned. . . . . . . . . . 9009.8 Deductions from Final Wages for Uniforms, Tools, and Equipment. . . . . . . . . . . 9019.9 Deductions for Cost of Cashing Payroll Checks Prohibited. . . . . . . . . . . . . . . . . . . . 9019.10 Wage Deductions for Use or Benefit of Employer Prohibited. . . . . . . . . . . . . . . . . 901

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9.11 Deductions of 30 Minutes’ Wages for Tardiness Permitted. . . . . . . . . . . . . . . . . . . 9019.12 Deductions Prohibited for Cost of Medical

Examinations and Driver’s License Physicals. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9019.13 Employer Liability for Unlawful Wage Deductions. . . . . . . . . . . . . . . . . . . . . . . . . . . 902

9.13.1 Misdemeanor and Civil Liability for Willful Refusal to Pay Wages as Required by Statute. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 902

9.13.2 Private Civil Actions Available to Recover Wages and Penalties Due. . . . . . . 9039.13.3 Employer Liability for Inaccurate Wage Statements. . . . . . . . . . . . . . . . . . . . . . 9039.13.4 Employer Liability Based on Failure to Pay Wages Due at Termination. . . . 9049.13.5 Private “Representative” Actions Authorized Under

California’s Private Attorneys General Act (PAGA). . . . . . . . . . . . . . . . . . . . . . . 90410 Wage Statements and Time Records . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 906

10.1 Required Contents of Wage Statements. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 906Pay stub for an employee paid an hourly wage . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 907

10.1.1 Corrections to Hours Worked or Pay Requires Employer to State Applicable Pay Period on Wage Statement. . . . . . . . . . . . . . . . . . . . . . . 908

10.1.2 Special Wage Statement Rules for California Paid Sick Leave. . . . . . . . . . . . . . 90810.1.3 Special Wage Statement Rules for Piece Rate and Commission Pay. . . . . . . . 908

10.2 Required Timing for Issuance of Wage Statements. . . . . . . . . . . . . . . . . . . . . . . . . . . 90810.3 “Detachable” Format for Wage Statements Required. . . . . . . . . . . . . . . . . . . . . . . . 90810.4 Electronic Wage Statements Permissible. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 90910.5 Three-Year Recordkeeping Requirement for Wage Statements

and Deduction Records. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 91010.6 Employee Right to Inspect or Copy Wage Statement

Information Within 21 Days of Request. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 91010.7 Public Sector Employers, Residence Owners, and Other Employers

Not Subject to Wage Statement Requirements. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 91210.8 Employer Liability for Wage Statement Violations. . . . . . . . . . . . . . . . . . . . . . . . . . . . 912

10.8.1 Employer Liability for Wage Statement Violations. . . . . . . . . . . . . . . . . . . . . . . . 91210.8.2 Determining When Employee “Suffers Injury”

Sufficient to Recover Penalties. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 91310.8.3 Determining When Employer Conduct is Sufficiently

“Knowing and Intentional” to Recover Penalties. . . . . . . . . . . . . . . . . . . . . . . . . . 91410.8.4 Personal Liability for Wage Statement Violations. . . . . . . . . . . . . . . . . . . . . . . . . 91510.8.5 Employer Liability for Failure to Furnish “Wage Deduction”

Statements or Retain Wage Statement Records for Three Years. . . . . . . . . . . 91510.8.6 Private Civil Actions Available to Recover Wages and Penalties Due. . . . . . . 91610.8.7 Private “Representative” Actions Authorized Under California’s

Private Attorneys General Act (PAGA). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 916

Contents: Chapter 6: Wages, Hours, and Working Conditions lxiii

10.8.8 Employer Right to Cure Pay Period and Employer Name and Address Defects Within 33 Days to Avoid Private Attorneys General Act (PAGA) Litigation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 917

10.9 Employer Duty to Keep Time and Payroll Records for Three Years. . . . . . . . . . . . 91810.9.1 Employer Duty to Keep Time Records in California. . . . . . . . . . . . . . . . . . . . . . 91810.9.2 Required Format for Keeping Time Records. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 91910.9.3 Employee Right to Inspect Time Records. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 91910.9.4 Employer Duty to Keep Time Records for Three Years. . . . . . . . . . . . . . . . . . . . 91910.9.5 Liability for Time Record Violations. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 919

11 Tips and Other Gratuities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 92011.1 Tips and Other Gratuities Are Sole Property of Employees. . . . . . . . . . . . . . . . . . 92011.2 “Gratuity” Broadly Defined Under California Law. . . . . . . . . . . . . . . . . . . . . . . . . . . 920

11.2.1 Payments by Patron Directly to Dancers Are Considered Gratuities. . . . . . . 92011.3 Employers Prohibited from Deducting Tip

“Processing Fees” or Crediting Tips Against Wages. . . . . . . . . . . . . . . . . . . . . . . . . . 92011.3.1 Federal “Tip Credit” Rules Violate California Law. . . . . . . . . . . . . . . . . . . . . . . . 921

11.4 Managers, Supervisors, and Other “Agents” of Employer Prohibited from Collecting or Receiving Gratuities. . . . . . . . . . . . . . . . . . . . . . . . . . . 92111.4.1 Tips Left for “Supervisors” May Not Violate Labor Code. . . . . . . . . . . . . . . . . . 921

11.5 Tip “Pooling” Policies Generally Lawful in California. . . . . . . . . . . . . . . . . . . . . . . . 92211.5.1 The “Direct Table Service” Requirement. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 92311.5.2 California “Service Contribution” Option Restricted by Federal Law. . . . . . . 92311.5.3 Reasonable Relationship Required Between

“Tip Share” and Direct Table Service. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 92311.6 Tip “Allocation” vs. Tip “Pooling” Policies. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 92411.7 “Service Charges” Ordinarily Not Considered Tips or Gratuities

Restricted by California Law. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 92511.7.1 Oakland Ordinance Requires Hospitality Employers

to Pay Service Charges to Employees. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 92511.8 Employer Duty to Turn Over Gratuity to Employee

Paid by Credit Card by Next Payroll Period. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 92611.9 Deductions Prohibited from Tips and Other

Gratuities for Credit Card Fees. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 92611.10 Offset of Tips Against Wages Owed (“Tip Credits”)

Unlawful Under California Law. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 92611.11 Written Agreements Circumventing Tip Rules Prohibited. . . . . . . . . . . . . . . . . . 92711.12 Employer Duty to Keep Accurate Records of Tips and

Other Gratuities Received. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 92711.13 Federal Tax and Recordkeeping Requirements. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 927

11.13.1 Employee Duty to Report Tips to Employer. . . . . . . . . . . . . . . . . . . . . . . . . . . . 927

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11.13.2 Employer Duty to Report Employee Tip Income to IRS and Compute Withholding Using Tip Income. . . . . . . . . . . . . . . . . . . . . 927

11.14 Employer Liability for Violations. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 92812 Bonuses and Commissions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 928

12.1 “Bonus” Defined. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 92812.2 Basic Rules for Bonus Plans. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 928

12.2.1 Requirement of Employment through Payment Date to Receive Payment. . 92912.2.2 No Payment Required Where Employee

Resigns or Is Terminated for Cause. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 92912.2.3 Pro Rata Payment Required if Termination

Occurs Through No Fault of Employee. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 92912.2.4 Bonus Payment Required if Conditions Met and

No Employment Through Specified Date Required. . . . . . . . . . . . . . . . . . . . . . . 92912.2.5 Waiting Time Penalties Available for

Failure to Pay Bonus at Termination. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 93012.2.6 Changes to Bonus Plan Restricted Once Employee Performance Begins. . . 93012.2.7 Forfeiture Provisions Discouraged. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 93012.2.8 Employers Prohibited From Deducting Business Costs from

Earned Bonus Amounts. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 93012.2.9 Additional Overtime Pay Due When Non-Discretionary Bonus Paid. . . . . . 932

12.3 “Commissions” Defined. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 93312.4 Basic Rules for Drafting and Implementing Commission Plans. . . . . . . . . . . . . . 933

12.4.1 Enforceability of Commission Plan Requires Valid Offer and Acceptance of Plan Terms. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 934

12.4.2 Draws and Other Advances Must Satisfy Minimum Wage, Overtime Pay, and Exemption Requirements. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 935

12.4.3 Reconciliation of Draw Against Commissions Must Be Completed Within “Reasonable” Period. . . . . . . . . . . . . . . . . . . . . . . . . 935

12.4.4 Recovery of Excess Draws or Advances at Termination Permitted Only Upon Agreement of Parties. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 935

12.4.5 Commission Agreements Must Be in Writing. . . . . . . . . . . . . . . . . . . . . . . . . . . . 93612.5 Computation of Commissions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 937

12.5.1 Deductions for Employer’s “Cost of Doing Business” Prohibited in Commission Calculations. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 937

12.5.2 Offset for Cost of Goods Returned Permissible in Calculating Commissions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 938

12.5.3 Deductions for Customer’s Failure to Pay Prohibited When Calculating Certain Commissions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 938

12.5.4 “Averaging” Paid Commission Hours With Other Unpaid Hours to Satisfy Minimum Wage Prohibited. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 938

12.5.5 Commissions Used to Meet Overtime Pay Exemption Requirements Limited to Pay Period in Which Commissions Are Paid. . . . . . . . . . . . . . . . . . . 939

Contents: Chapter 6: Wages, Hours, and Working Conditions lxv

12.6 “Forfeiture” Provisions Discouraged in Commission Plans. . . . . . . . . . . . . . . . . . . 93912.6.1 Forfeiture Provisions Based on Business Costs Prohibited. . . . . . . . . . . . . . . . 94012.6.2 “Ambiguous” Plan Provisions Interpreted to Avoid Forfeiture. . . . . . . . . . . . . 94012.6.3 “Unconscionable” Forfeiture Provisions Prohibited. . . . . . . . . . . . . . . . . . . . . . . 94112.6.4 Forfeiture Prohibited Where Employee is “Procuring Cause” of Sale. . . . . . . 942

12.7 Commissions Due on Termination of Employment. . . . . . . . . . . . . . . . . . . . . . . . . . 94212.7.1 Commissions Due on Resignation of Employee. . . . . . . . . . . . . . . . . . . . . . . . . . 94212.7.2 Commissions Due on Discharge of Employee. . . . . . . . . . . . . . . . . . . . . . . . . . . . 94212.7.3 Determining When Commissions are Due Upon Termination. . . . . . . . . . . . 943

13 Determining What Constitutes “Hours Worked” Requiring Compensation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 94313.1 California Definition of “Hours Worked” Requiring Compensation. . . . . . . . . . 94413.2 Federal Definition of “Hours Worked” Requiring Compensation. . . . . . . . . . . . . 945

13.2.1 The Federal “Continuous Workday” Rule. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 94613.3 Employee “Off-The-Clock” Work Ordinarily Compensable. . . . . . . . . . . . . . . . . . 947

13.3.1 Federal Law Excludes from Compensation Activities Before or After “Principal Activities” of Employment. . . . . . . . . . . . . . . . . . . . . 949

13.3.2 De Minimis Work Time Not Compensable. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 95013.4 Commute Time Between Home and Work Ordinarily Not Compensable. . . . 950

13.4.1 Commute Time in Employer Vehicle Used for “Ridesharing” Not Compensable. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 951

13.4.2 Federal “Portal-to-Portal” Act Exempts Normal Commute Time from Compensation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 951

13.4.3 Commute Time Under the “Control” of Employer Compensable. . . . . . . . . . 95113.5 Business Travel is Compensable. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 952

13.5.1 Travel Time from Home to Point of Departure for Business Trip May Be Compensable. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 952

13.5.2 Time Spent In Travel for Business Is Compensable. . . . . . . . . . . . . . . . . . . . . . . 95213.5.3 Time Not Controlled by Employer During Travel Is Not Compensable. . . . 95313.5.4 Lesser Rate of Pay For Travel Time Permitted. . . . . . . . . . . . . . . . . . . . . . . . . . . . 953

13.6 Sleep Time Compensable Unless Exempted By California Law. . . . . . . . . . . . . . . 95413.7 Meal Period Required on Employer’s Premises Is Compensable. . . . . . . . . . . . . . 955

13.7.1 Healthcare Industry Exception to California Meal Period Rules. . . . . . . . . . . 95513.8 Time Spent “Waiting” Is Compensable. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 956

13.8.1 Time Spent Waiting For and Receiving Medical Attention. . . . . . . . . . . . . . . . . 95713.9 Time Spent Changing and Washing May Be Compensable. . . . . . . . . . . . . . . . . . . 95713.10 Attendance at Training Programs, Lectures,

and Meetings May Be Compensable. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 95813.11 “Try Out” Time May Be Compensable. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 958

lxvi Contents: Chapter 6: Wages, Hours, and Working Conditions

13.12 Work Performed as “Intern” or “Trainee” May Be Compensable. . . . . . . . . . . . 95913.12.2 Employee Elected Training Not Compensable. . . . . . . . . . . . . . . . . . . . . . . . . 96113.12.1 Work Performed as Part of Employer-Established

Training Program May Be Compensable. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 96113.13 “Reporting Time Pay” Required Where Employer Provides

Less Than Half of Scheduled or Usual Work Hours. . . . . . . . . . . . . . . . . . . . . . . . . . 96113.13.1 Second Report to Work in Same Work

Day (“Call Back Pay”) Is Compensable. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 96213.13.2 Reporting Time Pay Required for Off-Hours

Staff Meetings and Training Time. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 96313.13.3 General Exceptions to Reporting Time Pay Requirements. . . . . . . . . . . . . . 96313.13.4 Exception for Weather and Other Work

Interruptions Beyond Employer’s Control. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 96413.13.5 The “Regular Part-time Shift” Exception

to Reporting Time Pay Requirements. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 96413.14 Call Back Pay. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 96513.15 Standby (“On-Call”) Time. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 965

13.15.1 Controlled Standby Must Be Compensated. . . . . . . . . . . . . . . . . . . . . . . . . . . . 96513.15.2 Uncontrolled Standby Time Not Compensable. . . . . . . . . . . . . . . . . . . . . . . . 96713.15.3 Pay at Lower Rate Permitted to Retain

Employee’s “Availability” to be On-Call. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 96813.15.4 Pay at Lower Rate Permitted for Controlled Standby. . . . . . . . . . . . . . . . . . . 968

13.16 “Recess Periods” Not Compensable for Certain Employees. . . . . . . . . . . . . . . . . 96813.17 Split Shift Premium Pay. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 96913.18 Time Residing on Premises Not Compensable for Certain Employees. . . . . . 970

13.18.1 Time Required by Healthcare Industry Employees to Reside on Premises Is Compensable. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 970

13.19 Meal Periods and Sleep Time Not Compensable for Certain Ambulance Drivers and Attendants on 24-hour Shifts. . . . . . . . . . . . . . . . . . . . . . . 971

13.20 De Minimis Work Time Not Compensable. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 97113.21 Compensable “Non-Productive” Time May Be Paid at Lower Rate. . . . . . . . . . 97213.22 Computing Hours Worked — Special Problems

Related to Employer Timekeeping Practices. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 97213.22.1 “Rounding” of Work Period Start and End Times Permissible. . . . . . . . . . . 97313.22.2 De Minimis Time Worked Need Not Be Recorded or Compensated. . . . 97413.22.3 Employer Practices Creating Discrepancies Between

Time Records and Actual Hours Worked. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 97413.22.4 No Specific Timekeeping System Required by California Law. . . . . . . . . . . 976

13.23 Employer Duty to Provide One Day’s Rest for Every Seven Days Worked. . . 97613.24 San Francisco Ordinances Prohibit “Unpredictable Scheduling” and

“Involuntary Part-time Status” for “Formula Retail” Employees. . . . . . . . . . . . . 977

Contents: Chapter 6: Wages, Hours, and Working Conditions lxvii

13.24.1 Restrictions Apply to “Formula Retail” Employers Only. . . . . . . . . . . . . . . . . 97713.24.2 Employer Duty to Provide New Hires with Estimate

of Minimum Work Hours Before Employment Starts. . . . . . . . . . . . . . . . . . . 97713.24.3 Employer Duty to Provide Employees with Notice of

Work Schedule Every 14 Days. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 97813.24.4 Employer Duty to Provide “Predictability Pay” If Less Than

Seven Days’ Notice Given for Schedule Change. . . . . . . . . . . . . . . . . . . . . . . . 97813.24.5 Employer Duty to Provide “On-Call Pay” If Employee

Not Called to Work. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 97813.24.6 Employer Defenses to Payment of “Predictability Pay”

and “On-Call Pay.” . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 97913.24.7 Equal Treatment of “Part-Time” and “Full-Time” Employees Required for

Starting Pay, Access to Time Off, and Promotions. . . . . . . . . . . . . . . . . . . . . . 97913.24.8 Employer Duty to Offer Additional Work Hours First to Part-Time

Employees. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 98013.24.9 Successor Employer Duty to Retain Eligible Employees for 90 Days After

“Change of Control.” . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 98013.24.10 Employer Duty to Provide At Least 24 Hours Notice

of Change in Control. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 98113.24.11 Employer Duty to Post Required Notice and Maintain

Records for Three Years. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 98113.25 Civil Actions Against Employers Permitted to Recover

Unpaid Wages for Hours Worked. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 98214 California Minimum Wage and Piece Rate Pay Requirements . . . . . . . . . 982

14.1 California Constitution Authorizes Regulation of Minimum Wage. . . . . . . . . . 98214.2 Overview of California Minimum Wage Requirements. . . . . . . . . . . . . . . . . . . . . . 982

14.2.1 Determining Whether California or Federal Minimum Wage Law Applies. 98314.2.2 Historical Comparison of California and Federal Minimum Wage Rates. . . 983

Table 5: Historical Comparison of California and Federal Minimum Wage Rates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 983

Table 5.1: California Minimum Wage Increase for Employers with More Than 25 Employees . . . . . . . . . . . . . . . . . . . . . . . . . . . . 984

Table 5.2: California Minimum Wage Increase for Employers with 25 or Fewer Employees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 985

14.2.3 City Minimum Wage and “Living Wage” Ordinances. . . . . . . . . . . . . . . . . . . . . 985Table 6: Historical Summary of San Francisco Minimum Wage . . . . . . . . . . . . . . . . . 985

14.2.4 Impact of Change in California Minimum Wage on Other Wage Payment Requirements. . . . . . . . . . . . . . . . . . . . . . . . . . . . 986

14.2.5 California Minimum Wage Inapplicable to Outside Sales Employees and Family Members of Employer. . . . . . . . . . . . . . . . . . . . . . . 987

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14.2.6 Less Than California Minimum Wage May Be Paid to “Learners” and Apprentices. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 988

14.2.7 Less Than California Minimum Wage May Be Paid to Licensed Disabled Workers. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 988

14.2.8 Written Agreement Required to Credit Meals or Lodging Against California Minimum Wage. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 988

14.2.9 Garment “Manufacturers” Must Guarantee Minimum and Overtime Wages Owed by Worker’s Employer. . . . . . . . . . . . . . . . . . . . . . . 989

14.2.10 California Prohibits Application of “Tip Credits” Toward Minimum Wage. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 989

14.3 Split Shift Premium Pay. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 98914.4 Comparison of California and Federal Methods

for Determining Minimum Wage Compliance. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 99014.4.1 Federal “Averaging” Method to Determine Compliance

with Minimum Wage Prohibited by California Law. . . . . . . . . . . . . . . . . . . . . . . 99114.5 California Limitations on Use of “Piece Rate” and “Commission” Pay. . . . . . . . . . 992

14.5.1 California Prohibition on Averaging Restricts Employer Use of “Piece Rate” and “Commission” Pay. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 992

14.5.2 Employer Duty to Pay for Rest Periods, Recovery Periods and Other “Non-Productive Time” Separate from Piece Rate Pay. . . . . . . . . . . . . . . . . . . . 995

14.5.3 Employer Duty to Pay for Rest Periods and Recovery Periods Using Special Pay Formula Required by Statute. . . . . . . . . . . . . . . . . . . . . . . . . . . 996

14.5.4 Employer Duty to Pay for “Other Non-Productive Time” At Hourly Rate Not Less Than Applicable Minimum Wage. . . . . . . . . . . . . . . 998

14.5.5 Employer Duty to Include Detailed Pay and Hours Information on Employee Wage Statements When Piece Rates Used. . . . . . . . . . . . . . . . . . . 999

14.5.6 No Employer Duty to Track Actual Rest Break Minutes for Wage Statements. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1000

14.5.7 No Employer Duty to Track Actual “Non-Productive” Time for Wage Statements. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1000

14.6 Civil Actions for Damages Authorized for Minimum Wage Violations. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100114.6.1 Personal Liability for Minimum Wage Violations. . . . . . . . . . . . . . . . . . . . . . . . . 100114.6.2 Private “Representative” Actions Authorized Under

California’s Private Attorneys General Act (PAGA). . . . . . . . . . . . . . . . . . . . . . 100115 California Overtime Pay Requirements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1003

15.1 California Overtime Pay Requirements. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100315.2 California Definition of “Regular Rate of Pay.” . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1003

15.2.1 Payments Included in Determining Regular Rate of Pay. . . . . . . . . . . . . . . . . . 100415.2.2 Payments Excluded In Determining Regular Rate of Pay. . . . . . . . . . . . . . . . . 1005

15.3 California Definition of “Workweek” and “Workday.” . . . . . . . . . . . . . . . . . . . . . . . 1005

Contents: Chapter 6: Wages, Hours, and Working Conditions lxix

15.4 Overtime Hours Not Subject to Premium Rates of Pay or California Overtime Pay Rules. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100615.4.1 “Make-Up” Time Authorized by Law

Not Subject to Overtime Rates of Pay. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100615.4.2 Certain Overtime Hours Worked Under Alternative

Workweek Schedule Not Subject to Overtime Rates of Pay. . . . . . . . . . . . . . 100715.4.3 De Minimis Time Not Subject to Overtime Pay Rules. . . . . . . . . . . . . . . . . . . 100715.4.4 Overtime Hours Worked Under Valid Collective Bargaining

Agreement. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100715.4.5 Certain Hours Worked By “Personal Attendants” Not Subject

to Overtime Pay Rules. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100815.4.6 Persons in “Agricultural Occupations” Subject to Overtime Pay

“Phase-In” Rules. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1008Table 6.1: Agriculture Industry Overtime

(Employers with Over 25 Employees) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1009

Table 6.2: Agriculture Industry Overtime ( Employers with 25 or Fewer Employees) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1010

15.5 Impermissible Overtime Pay Arrangements. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 101015.5.1 Certain Overtime Pay Arrangements with Minors Prohibited. . . . . . . . . . . . 101015.5.2 “Fluctuating Workweek” Pay Arrangements Prohibited. . . . . . . . . . . . . . . . . . 101115.5.3 “Belo” Pay Arrangements Prohibited. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1012

15.6 Computing Overtime Pay for “Salaried Non-Exempt” Employees. . . . . . . . . . . . 101215.7 Computing Overtime Pay for “Commissioned” Sales Employees. . . . . . . . . . . . . 101315.8 Computing Overtime Pay for “Piece Rate” Employees. . . . . . . . . . . . . . . . . . . . . . . 1014

15.8.1 Total Pay Divided by Total Hours Worked Method. . . . . . . . . . . . . . . . . . . . . . 101415.8.2 Piece Rate as Regular Rate Method. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 101515.8.3 Computing Overtime When Employee Paid by Combination

of Hourly and Piece Rate. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 101615.9 Additional Overtime Pay Due on Payment of “Production” Bonus. . . . . . . . . . . 101615.10 Additional Overtime Pay Due on Payment of “Flat Sum” Bonus. . . . . . . . . . . . 101715.11 Computing Overtime When Two or More Rates of Pay Used. . . . . . . . . . . . . . . 1018

15.11.1 Exception for Payment of Prevailing Wage. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 101815.12 Civil Actions Against Employers Authorized for Overtime Pay Violations. . 1018

15.12.1 Personal Liability for Overtime Pay Violations. . . . . . . . . . . . . . . . . . . . . . . . 101815.12.2 Representative Actions For Overtime Wage Violations Authorized

Under California’s Private Attorneys General Act (PAGA). . . . . . . . . . . . . 101816 Exemptions from Overtime Pay and Minimum Wage Laws. . . . . . . . . . . . . . . 1019

16.1 California Exemptions from Overtime Pay and Other Requirements. . . . . . . . 101916.1.1 Summary and Scope of California Exemptions. . . . . . . . . . . . . . . . . . . . . . . . . . 1020

Table 7: Summary and Scope of California Exemptions . . . . . . . . . . . . . . . . . . . . . . . . 1020

lxx Contents: Chapter 6: Wages, Hours, and Working Conditions

16.2 Summary and Scope of Federal Exemptions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1022Table 8: Summary and Scope of Federal Exemptions . . . . . . . . . . . . . . . . . . . . . . . . . . . 1023

16.3 California’s Executive Exemption. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 102616.3.1 Executive Exemption Requires Performance of Exempt

“Management” Duties. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 102716.3.2 Exemption Requires “More Than Half” of Work Time Be Spent

Performing Exempt Duties (“50 Percent Plus” Time Requirement). . . . . . . 102816.3.3 Non-Exempt Duties Excluded From “50 Percent Plus”

Time Requirement. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 102916.3.4 Work “Directly and Closely” Related to Management Duties

Counted Toward “50 Percent Plus” Time Requirement. . . . . . . . . . . . . . . . . . 103016.3.5 Certain “Occasional” Tasks Counted Toward

“50 Percent Plus” Time Requirement. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 103216.3.6 Certain “Emergency” Duties Counted Toward

“50 Percent Plus” Time Requirement. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 103216.3.7 Employer’s “Realistic Requirements” of Job Counted

Toward “50 Percent Plus” Time Requirement. . . . . . . . . . . . . . . . . . . . . . . . . . . 103316.3.8 Executive Exemption Requires Supervision of

Two or More Subordinates. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 103416.3.9 Executive Exemption Requires Authority to Hire or Fire

or Recommend Change of Status. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 103416.3.10 Executive Exemption Requires Exercise of “Discretion

and Independent Judgment.” . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 103516.3.11 Executive Exemption Requires That Duties Be Performed for

Entire Enterprise or Recognized Department or Subdivision. . . . . . . . . . . . 103616.3.12 Executive Exemption Excludes “Trainees.” . . . . . . . . . . . . . . . . . . . . . . . . . . . . 103616.3.13 Executive Exemption Usually Excludes Working Supervisors,

Working Foremen, and “Leads.” . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 103716.3.14 Executive Exemption Requires That Employee Earn Monthly

Salary Equivalent of at Least Twice Minimum Wage. . . . . . . . . . . . . . . . . . . . 103716.3.15 Executive Exemption Requires Employee to Meet “Salary Basis” Test. . . 104016.3.16 California Rules for Reducing Salary for Absences

Authorized by “Salary Basis” Test. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1044Table 9: California Monthly Equivalent of Twice Minimum Wage . . . . . . . . . . . . . 1038

16.4 California’s Administrative Exemption. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 104516.4.1 Three Primary Types of Employees Qualify for Administrative

Exemption. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 104616.4.2 Trainees Excluded from Administrative Exemption. . . . . . . . . . . . . . . . . . . . . 104716.4.3 Job Titles Alone Insufficient to Determine Administrative

Exemption. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 104716.4.4 Administrative Exemption Requires “More Than Half” of Work

Time Be Spent Performing Exempt Duties (“50 Percent Plus” Time Requirement). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1048

Contents: Chapter 6: Wages, Hours, and Working Conditions lxxi

16.4.5 Non-Exempt Work Excluded from “50 Percent Plus” Time Requirement. 104816.4.6 Only “Office” and “Non-Manual” Work Counted

Toward “50 Percent Plus” Time Requirement. . . . . . . . . . . . . . . . . . . . . . . . . . . 104816.4.7 Routine Work “Directly and Closely Related” to Administrative

Work Counted Toward “50 Percent Plus” Time Requirement. . . . . . . . . . . . 104916.4.8 Examples of Work “Directly and Closely Related” to Administrative

Work Counted Toward “50 Percent Plus” Time Requirement. . . . . . . . . . . . 104916.4.9 Work Directly Related to “Management Policies” or “General Business

Operations” Counted Toward “50 Percent Plus” Time Requirement. . . . . . 105116.4.10 “Production” and “Sales” Work Not Counted Toward

“50 Percent Plus” Time Requirement. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 105316.4.11 Certain Work Performed by Computer Programmers and Systems Analysts

Counted Toward “50 Percent Plus” Time Requirement. . . . . . . . . . . . . . . . . 105516.4.12 Work Performed by “Academic” Administrative Personnel

Counted Toward “50 Percent Plus” Time Requirement. . . . . . . . . . . . . . . . . 105616.4.13 Employer’s “Realistic Requirements” of Job Counted

Toward “50 Percent Plus” Time Requirement. . . . . . . . . . . . . . . . . . . . . . . . . . 105716.4.14 Administrative Exemption Requires Exercise

of “Discretion and Independent Judgment.” . . . . . . . . . . . . . . . . . . . . . . . . . . . 105716.4.15 Administrative Exemption Requires That Employee Earn

Monthly Salary Equivalent of at Least Twice Minimum Wage. . . . . . . . . . 106116.4.16 Administrative Exemption Requires

Employee to Meet “Salary Basis” Test. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 106216.5 California’s Professional Exemption. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1062

16.5.1 Exemption Requires That “More Than Half” of Work Time Be Spent Performing Exempt Duties (“50 Percent Plus” Time Requirement). 1062

16.5.2 Types of Work That Count Toward “50 Percent Plus” Time Requirement. 106316.5.3 “Learned Professional” Work Requires Prolonged Specialized Study i

n Field of Science or Learning. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 106316.5.4 “Artistic” Work Must Be Original, Creative, and Performed in

Recognized Artistic Field. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 106416.5.5 Examples of Exempt “Artistic” Professional Work Counted Toward

“50 Percent Plus” Time Requirement. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 106516.5.6 Only Work “Predominantly Intellectual and Varied” Counted

Toward “50 Percent Plus” Time Requirement. . . . . . . . . . . . . . . . . . . . . . . . . . . 106616.5.7 Routine Work That Is “Essential Part of” and “Necessarily Incident

to” Exempt Work Counted Toward “50 Percent Plus” Time Requirement. 106716.5.8 Work of Certain “Professionals” Not Counted Toward

“50 Percent Plus” Time Requirement. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 106716.5.9 California Teachers Covered by Professional Exemption. . . . . . . . . . . . . . . . . 106816.5.10 Pharmacists and Certain Registered Nurses Excluded

from California’s Professional Exemption. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 106916.5.11 Trainees Excluded from Professional Exemption. . . . . . . . . . . . . . . . . . . . . . . 1069

lxxii Contents: Chapter 6: Wages, Hours, and Working Conditions

16.5.12 Professional Exemption Requires Exercise of “Discretion and Independent Judgment.” . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1069

16.5.13 Professional Exemption Requires That Employee Earn Monthly Salary Equivalent of at Least Twice Minimum Wage. . . . . . . . . . . . . . . . . . . 1070

16.5.14 Professional Exemption Requires Employee to Meet “Salary Basis” Test. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1070

16.6 California Computer Software Professional Exemption. . . . . . . . . . . . . . . . . . . . . 107016.6.1 Employees Excluded from Computer Software Exemption. . . . . . . . . . . . . . . 1072

16.7 California Commissioned Sales Employee Exemption. . . . . . . . . . . . . . . . . . . . . . 107216.7.1 Employee Earnings Must Exceed One and a Half Times

California Minimum Wage. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 107316.7.2 Minimum Earnings Requirement Must Be Met Each Workweek

Using Commissions Actually Paid in Pay Period. . . . . . . . . . . . . . . . . . . . . . . . . 107316.7.3 Commissions Must Make Up More Than

One Half of Employee’s Weekly Earnings. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 107416.7.4 Commission Earnings Must Meet “Representative Period” Test. . . . . . . . . . 107416.7.5 Special Commission Recordkeeping Requirements. . . . . . . . . . . . . . . . . . . . . . 107516.7.6 The Federal “Inside Sales” Exemption. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1075

16.8 The California “Outside Sales” Employee Exemption. . . . . . . . . . . . . . . . . . . . . . . 107616.8.1 More Than Half of Time Worked Must

Be Spent on Outside Sales Activities. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 107616.8.2 Exemption Determined by Both Actual Time Worked and

“Realistic Requirements” of Job. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 107616.8.3 Activities Performed in Conjunction with Sales Counted

Toward Exemption. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 107716.8.4 Federal “Outside Sales” Employee Exemption. . . . . . . . . . . . . . . . . . . . . . . . . . . 1077

16.9 Exemption to Overtime Pay Rules for Employees Covered by Valid Collective Bargaining Agreement. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 107916.9.1 The Requirement of “Premium Wage Rates for All Overtime Hours.” . . . . 108016.9.2 Temporary Expiration of Union Contract Does Not Trigger

Payment of Overtime. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 108016.10 California Truck Driver Exemption to Overtime Pay Rules. . . . . . . . . . . . . . . . 1080

16.10.1 Driver Hours Regulated by United States Department of Transportation Exempt from Overtime Pay Rules. . . . . . . . . . . . . . . . . . 1081

16.10.2 California Driver Exemption Consistent with Federal Law. . . . . . . . . . . . . 108216.10.3 Driver Hours Regulated by California Highway Patrol or California Public

Utilities Commission Exempt from Overtime Pay Rules. . . . . . . . . . . . . . . 108216.10.4 California Applies Exemption Narrowly to “Driver” Duties Only. . . . . . . 108316.10.5 No California Exemption for Drivers of Specified Two-Axle Trucks. . . . 108316.10.6 Federal Preemption of California Laws Impacting

Motor Carrier Prices, Routes, or Services. . . . . . . . . . . . . . . . . . . . . . . . . . . . 108416.10.7 Other California “Drivers” Subject to Overtime Pay Rules. . . . . . . . . . . . . 1084

Contents: Chapter 6: Wages, Hours, and Working Conditions lxxiii

16.10.8 Special Exemptions for Ambulance Drivers and Attendants on 24-Hour Duty. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1084

16.11 Exemption for Licensed Physicians and Surgeons. . . . . . . . . . . . . . . . . . . . . . . . . . 108517 Alternative Workweek Schedules . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1086

17.1 Overview of Alternative Workweek Schedules and Procedures for Adoption. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 108617.1.1 Advantages and Disadvantages of Alternative Workweek Schedules. . . . . . 1086

17.2 Procedures Required for Adoption of Alternative Workweek Schedules. . . . 108717.3 Employer Duty to Propose Written Agreement

for Alternative Workweek Schedule. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 108717.3.1 Only Employer Has Right to Propose Alternative Workweek Schedule. . . 108717.3.2 Employer’s Proposed Agreement Must Specify “Regularly Reoccurring”

Number of Days and Hours in Alternative Workweek Schedule. . . . . . . . . . 108717.3.3 Employer’s Proposed Agreement Must Specify Workdays

of at Least Four Hours and Not More Than 12 Hours. . . . . . . . . . . . . . . . . . . . 108817.3.4 Employer’s Proposed Agreement Must Provide at Least Two

Consecutive Days Off Under Certain Wage Orders. . . . . . . . . . . . . . . . . . . . . . 108917.3.5 Employer’s Proposed Agreement May Consist of

“Menu” of Alternative Workweek Schedule Options. . . . . . . . . . . . . . . . . . . . . 109017.3.6 Employer Can Propose Multiple Alternative Workweek

Schedule Elections in Lieu of “Menu of Options.” . . . . . . . . . . . . . . . . . . . . . . . 109117.4 Employer Duty to Make Written Disclosure to Employees

and Conduct Noticed Meeting at Least 14 Days Before Vote. . . . . . . . . . . . . . . . 109217.5 Employer Duty to Conduct Secret Ballot Election to

Adopt Alternative Workweek Schedule. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 109317.5.1 Employer Duty to Conduct Secret Ballot Vote

and Obtain Approval of Two Thirds of Work Unit. . . . . . . . . . . . . . . . . . . . . . . 109317.5.2 Employer Duty to Conduct Election at Worksite During Work Hours. . . . 109317.5.3 Employer Coercion, Intimidation,

Retaliation in Voting Process Prohibited. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 109317.6 Employer Duty to Report Election Results to State. . . . . . . . . . . . . . . . . . . . . . . . . . 109417.7 Employer Duty to Wait 30 Days Before Implementation

of Newly Adopted Alternative Workweek Schedule. . . . . . . . . . . . . . . . . . . . . . . . . 109417.8 Employer Duty to Accommodate Employees Who Cannot Work

Alternative Workweek Schedule. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 109417.8.1 Accommodation of Employees Who Cannot Work

Newly Adopted Alternative Workweek Schedule. . . . . . . . . . . . . . . . . . . . . . . . 109417.8.2 Employers Not Required to Accommodate Employees Newly Hired

Into Existing Alternative Workweek Schedule. . . . . . . . . . . . . . . . . . . . . . . . . . . 109417.8.3 Employer Duty to Accommodate Employees Who Cannot Work

Alternative Workweek Schedule for Religious Reasons. . . . . . . . . . . . . . . . . . 109417.9 Overtime Pay Requirements for Alternative Workweek Schedules. . . . . . . . . . 1095

lxxiv Contents: Chapter 6: Wages, Hours, and Working Conditions

17.9.1 Overtime Pay Required if Employer Provides Fewer Work Hours Than Agreed Upon Alternative Workweek Schedule. . . . . . . . . . . . . . 1095

17.9.2 Overtime Pay Required for Hours and Days of Work Employer Assigns Outside of Agreed Upon Alternative Workweek Schedule. . . . . . . 1096

17.9.3 Assignment of Overtime on Regular Basis Does Not Invalidate Alternative Workweek Schedule. . . . . . . . . . . . . . . . . . . . . . . . . 1097

17.9.4 Maximum Number of Hours Permitted Under Alternative Workweek Schedule. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1097

17.9.5 Application of Overtime Rules to Employees Placed by Staffing Firms. . . . . 109717.10 Modifications to Agreed Upon Alternative Workweek

Schedule and Impact on Overtime Pay Requirements. . . . . . . . . . . . . . . . . . . . . 109817.10.1 Employer Right to Make Permanent Changes to Schedule

Limited to “Occasional” Basis with One Week’s Notice. . . . . . . . . . . . . . . . 109817.10.2 Employer Right to Temporarily Assign Hours and

Days of Work Outside of Agreed Upon Alternative Workweek Schedule Upon Payment of Overtime. . . . . . . . . . . . . . . . . . . . . 1099

17.10.3 Employer Right to Reduce Scheduled Daily Work Hours Upon Payment of Overtime and Reporting Time Pay. . . . . . . . . . . . . . . . . . 1100

17.10.4 Employee Right to Permanently Change Agreed Upon Schedule Limited to Occasional (“Weekly”) Basis. . . . . . . . . . . . . . . . . . . . . 1100

17.10.5 Employee Right to Substitute One Day of Work for Another for Personal Needs on “Occasional” Basis. . . . . . . . . . . . . . . . . . . . 1100

17.11 Employee Repeal and Employer Termination of Alternative Workweek Schedules. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 110117.11.1 Employees May Repeal Alternative Workweek Schedule Upon

Petition of One Third of Affected Employees and Two-Thirds Vote. . . . 110117.12 Effect of Alternative Workweek Schedules Adopted Before 1998. . . . . . . . . . . 1102

17.12.1 Grandfather Protection for Employees Working Under Individual Agreements as of July 1, 1999. . . . . . . . . . . . . . . . . . . . . . . 1102

17.12.2 Grandfather Protection for Schedules Adopted Before 1998. . . . . . . . . . . 110217.13 Healthcare Industry Rules for Alternative Workweek Schedules. . . . . . . . . . . . 1103

17.13.1 Alternative Workweek Schedule Overtime Pay Rules for Healthcare Industry Employers. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1103

17.13.2 Work Hour Maximums for Healthcare Industry Employees. . . . . . . . . . . 110317.13.3 Duty of Licensed Hospital Employers to Accommodate

Employees Unable to Work Alternative Workweek Schedule. . . . . . . . . . 110417.14 Special Alternative Workweek Schedule Rules for On-Site

Construction, Drilling, Logging, and Mining Employers. . . . . . . . . . . . . . . . . . . 110417.14.1 Certain Offshore Oil, Gas, Drilling, and Servicing Employees

May Adopt 12-hour Alternative Workweek Schedules. . . . . . . . . . . . . . . . 110417.15 State Investigation and Enforcement of Alternative

Workweek Schedule Election Rules. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 110417.16 Recordkeeping Requirements for AWS Election Materials. . . . . . . . . . . . . . . . . . 1105

Contents: Chapter 6: Wages, Hours, and Working Conditions lxxv

18 Meal Periods . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 110518.1 Basic California Meal Period Requirements. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 110518.2 Employer Duty to Pay “Wage Premium” for Failure to Provide

Meal Periods Required by Law. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 110618.2.1 No Wage Premium Owed if Employee Continues

to Work After Relieved of Duty for Meal Period. . . . . . . . . . . . . . . . . . . . . . . . . 110718.2.2 Employee Limited to One “Wage Premium” Per Day

Regardless of Number of Meal Period Violations. . . . . . . . . . . . . . . . . . . . . . . . 110718.2.3 Employees Limited to One Meal Period Premium and One Rest

Break Premium Per Day Regardless of Number of Violations. . . . . . . . . . . . . 110718.3 Employer Duty to “Provide” Required Meal Periods. . . . . . . . . . . . . . . . . . . . . . . . . 1108

18.3.1 Employers of “Field” Employees Required to Provide Meal Periods. . . . . . 111018.4 Employer Duty to Pay for Time Worked and Wage Premium

if Employee Not Relieved from Work During Meal Break. . . . . . . . . . . . . . . . . . . . 111018.4.1 No Employer Duty to Pay Wage Premium if Employee

Relieved of Work for Meal Break. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 111118.4.2 Employer Duty to Pay for Time Worked During Meal Break

if Employer “Knew or Should Have Known” of Work Performed. . . . . . . . . 111118.5 Employees Subject to “Controlled Standby” During Meal Period

Must Be Paid for Hours Worked and Wage Premium. . . . . . . . . . . . . . . . . . . . . . . . 111118.6 Employees Not Free to Leave Premises During Meal Period

Must Be Paid for Hours Worked and Wage Premium. . . . . . . . . . . . . . . . . . . . . . . . 111218.7 Training and Meeting Time During Meal Periods Must Be Paid. . . . . . . . . . . . . . 111218.8 “On-Duty” Meal Periods Prohibited Unless Required by

“Nature of the Work” and Written Agreement Obtained. . . . . . . . . . . . . . . . . . . . 111218.8.1 Special Rules for Certain Employees of 24-Hour

Residential Care Facilities. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 111318.9 Meal Period Waiver Required for Health Care

Employees Working More Than Eight Hours a Day. . . . . . . . . . . . . . . . . . . . . . . . . . 111418.10 Meal Period Requirements for Union Employees. . . . . . . . . . . . . . . . . . . . . . . . . . . 111418.11 Manufacturing Employees Covered by Union Contract

May Take Meal Period Within First Six Hours of Work. . . . . . . . . . . . . . . . . . . . . 111418.12 Meal Period Requirements for On-Site Construction,

Drilling, Logging, and Mining Employees. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 111418.13 Meal Period Requirements for Transportation Industry Employers. . . . . . . . . 1115

18.13.1 On-Duty Meal Periods for Fuel Carriers Subject to Federal Safety Regulations. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1115

18.13.2 No Preemption of California Meal and Rest Period Rules Affecting Motor Carriers. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1115

18.14 Union Employees in Wholesale Baking Industry May Be Exempt From Meal Period Rules. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1115

lxxvi Contents: Chapter 6: Wages, Hours, and Working Conditions

18.15 Union Employees in Broadcasting and Motion Picture Industry May Be Exempt From Meal Period Rules. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1116

18.16 Employer Duty to Record Time Taken for Meal Periods. . . . . . . . . . . . . . . . . . . . 111618.17 Employer Liability for Failure to Provide Required Meal Periods. . . . . . . . . . . 1117

18.17.1 Personal Liability for Violations. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 111718.18 Private “Representative” Actions Authorized Under California’s

Private Attorneys General Act (PAGA). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 111719 Rest Breaks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1119

19.1 Basic Rest Break Requirements. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 111919.2 The “Authorize and Permit” Requirement. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 112019.3 The “Major Fraction Thereof” Requirement. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1120Table 10: Number of Rest Periods Required by Shift Length . . . . . . . . . . . . . . . . . . . . . . 1121

19.4 The “Middle of the Work Period” Requirement. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 112119.5 No Requirement That First Rest Break Occur Before First Meal Break. . . . . . . 112119.6 The “Net Ten Minute” Requirement. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 112219.7 No Rest Periods Required for Employees Working

Less Than Three and a Half Hours a Day. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 112219.8 Employer Duty to Pay “Wage Premium” for Rest and

“Cool-Down” Periods Not Authorized or Permitted. . . . . . . . . . . . . . . . . . . . . . . . . 112219.9 Rest Period Requirements for Union Employees. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 112319.10 Employees of Certain Residential Care Facilities

Subject to Special Rest Period Rules. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 112319.11 Special Rest Period Requirements for Union Employees in On-Site

Construction, Drilling, Logging, and Mining Occupations. . . . . . . . . . . . . . . . . . 112319.12 Employer Duty to Compensate Piece Rate Workers

Separately for Rest and Recovery Periods. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 112319.13 Employer Liability for Rest Period Violations. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1124

19.13.1 Personal Liability for Rest Break Violations. . . . . . . . . . . . . . . . . . . . . . . . . . . . 112420 Employment of Minors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1124

20.1 California Restrictions on Employment of Minors. . . . . . . . . . . . . . . . . . . . . . . . . . 112421 Expense Reimbursement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1125

21.1 Employer Duty to Reimburse Employee for All Necessary Expenses or Losses. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1125

21.2 Employee Must Be Acting Within “Course and Scope” of Employment to Recover for Expenses or Losses. . . . . . . . . . . . . . . . . . . . . . . . . . 1126

21.3 Employer Duty to Reimburse Employee for Required Use of Personal Vehicle. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1126

Contents: Chapter 6: Wages, Hours, and Working Conditions lxxvii

21.3.1 Three Methods Permitted for Computing Vehicle Expense Reimbursement. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1126

21.3.2 Employer Reimbursement Based on IRS Mileage Rate Presumed Reasonable. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1128

21.4 Employer Duty to Reimburse Employee for Certain Tools, Equipment, and Required Personal Cell Phone Use. . . . . . . . . . . . . . . . . . . . . . . . 1129

21.5 Employer Duty to Provide and Maintain Certain Uniforms and Clothing. . . 113021.6 Employer Duty to Furnish Safety Devices and Safeguards. . . . . . . . . . . . . . . . . . . . 113121.7 Employer Duty to Reimburse Expenses and Losses

May Not Be Waived by Private Agreement. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 113121.8 Reimbursement of Expenses Resulting from Direct Deposit. . . . . . . . . . . . . . . . . 113121.9 Local Legislation Requiring Reimbursement of Expenses. . . . . . . . . . . . . . . . . . . . 1132

21.9.1 Employer Duty to Reimburse or Subsidize Certain Commute Expenses for San Francisco Bay Area Employees. . . . . . . . . . . . . . . . . . . . . . . . . 1132

21.10 Civil Actions to Recover Business Expenses Authorized. . . . . . . . . . . . . . . . . . . . . 113321.10.1 Personal Liability for Unreimbursed Business Expenses.. . . . . . . . . . . . . . . 1133

21.11 Private “Representative” Actions for Violations Authorized Under California’s Private Attorneys General Act (PAGA). . . . . . . . . . . . . . . . . . 1133

22 Employee Right to Inspect and Copy Wage, Personnel File, and Other Information Maintained by Employer . . . . . . . . . . . . . . . . . . . . . . . 113422.1 Employee Right to Copies of Signed Personnel Records. . . . . . . . . . . . . . . . . . . . . 1134

22.1.1 Misdemeanor Liability for Violation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 113522.2 Employee Right to Inspect and Receive Copy of Personnel Records. . . . . . . . . . 1135

22.2.1 Employee Duty to Make Request in Writing. . . . . . . . . . . . . . . . . . . . . . . . . . . . 113522.2.2 Employer Duty to Make Information Available to Employee

for “Inspection” Within 30 Days of Written Request. . . . . . . . . . . . . . . . . . . . . 113622.2.3 Employer Duty to Provide “Copies” of Personnel Records

to Employee Within 30 Days of Written Request. . . . . . . . . . . . . . . . . . . . . . . . 113622.2.4 Employee Charge for Copies Permitted at Actual Cost. . . . . . . . . . . . . . . . . . . 113622.2.5 Employer Duty to Keep Personnel Records for Three Years. . . . . . . . . . . . . . 113622.2.6 Employer Duty to Permit Inspection and

Produce Copies at Specified Locations. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 113722.2.7 Limitations on Number of Employee Requests for

Inspection and Copies of Personnel Information. . . . . . . . . . . . . . . . . . . . . . . . 113722.2.8 Right to Inspect and Obtain Copies Ceases Once Lawsuit Filed. . . . . . . . . . 113722.2.9 Employees Covered by Valid Collective Bargaining Agreement

Exempt from Right to Inspect and Obtain Copies. . . . . . . . . . . . . . . . . . . . . . . 113722.2.10 Collective Bargaining Agreements May

Require Additional Rules for Inspection. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 113822.2.11 Certain Public Sector Employees Exempt

from Right to Inspect and Obtain Copies. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1138

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22.2.12 Employer Fines, Injunctive Relief and Other Liability for Violation of Inspection and Copy Requirements. . . . . . . . . . . . . . . . . . . . 1138

22.3 Employee Right to Inspect or Copy Certain Wage Information Within 21 Days of Request. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1138

23 Posting and Recordkeeping Requirements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 113923.1 Posting Requirements Related to Wages, Hours, and Working Conditions. . . 1139

23.1.1 California Posting Requirements. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1139Table 11: Summary of Postings Required by California Labor Code . . . . . . . . . . . . . 1141

23.1.2 Federal Posting Requirements. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 114323.2 California Wage and Hour Recordkeeping Requirements. . . . . . . . . . . . . . . . . . . . 1145

23.2.1 Employer Duty to Keep “Wage Statements” and “Records of Deduction” for Three Years. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1145

23.2.2 Employer Duty to Keep Time and Payroll Records for Three Years. . . . . . . 114523.2.3 Employer Duty to Keep Personnel Records for Three Years. . . . . . . . . . . . . . 114623.2.4 Employer Duty to Keep Records Related to California

Unemployment Insurance for Four Years. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 114623.2.5 Employer Duty to Keep Records Related to Payment of Commissions. . . . 114623.2.6 Employer Duty to Keep Records of Gratuities Received. . . . . . . . . . . . . . . . . . 114723.2.7 Duty of Public Works Contractors to Keep

Wage and Hour Records Related to Project. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 114723.2.8 Employer Duty to Keep Records Related to Garment

Manufacturing Work for Three Years. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 114823.2.9 Employer Duty to Keep Records Related to Industrial Homework. . . . . . . . 114823.2.10 Employer Duty to Keep Records Related to Employment of Minors. . . . . 114823.2.11 Duty of Employers Performing Janitorial Services to Keep

Records of Wages, Hours and Working Conditions for Three Years. . . . . 114823.2.12 Employer Duty to Keep Records Related to

Alternative Workweek Schedule Elections. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 114923.3 Federal Wage and Hour Recordkeeping Requirements. . . . . . . . . . . . . . . . . . . . . . . 1149

23.3.1 Federal Fair Labor Standards Act Requires Retention of Records Up to Three Years. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1149

23.4 California and Federal Payroll Tax Recordkeeping Requirements. . . . . . . . . . . 115023.4.1 Federal Payroll Tax Recordkeeping Requirements. . . . . . . . . . . . . . . . . . . . . . . 115023.4.2 California Payroll Tax Recordkeeping Requirements. . . . . . . . . . . . . . . . . . . . 1151

Endnotes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1153

Ε Chapter 7: Termination and Discipline 1239

1 Overview of California Employment Termination Laws . . . . . . . . . . . . . . . 12391.1 Chapter Overview. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1239

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2 California’s At-Will Employment Rule . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12392.1 California’s Presumption of At-Will Employment. . . . . . . . . . . . . . . . . . . . . . . . . . . . 1239

2.1.1 At-Will Presumption Inapplicable Before Employment Begins. . . . . . . . . . . . . 12402.2 California’s Three Major Exceptions to At-Will Employment. . . . . . . . . . . . . . . . . 1240

3 Statutes That Limit the Employer’s Right to Terminate At-Will . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12413.1 Overview of Statutes Limiting the Employer’s Right to Terminate

At-Will. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12413.2 Anti-Discrimination Statutes Providing Basis for Wrongful

Termination Claims. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12413.3 Anti-Retaliation Statutes Providing Basis

for Wrongful Termination Claims. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12423.4 Leave of Absence Statutes Providing Basis for Wrongful

Termination Claims. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12433.5 California Labor Code Sections Providing Basis for Wrongful

Termination Claims. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12433.6 Summary of California and Federal Statutes Providing Basis

for Wrongful Termination Claims. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1244Table 12: Summary of Statutes Limiting Employer’s Right to

Terminate/Discipline At-Will . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1244

3.7 Damages Available to Employees for Terminations Violating California or Federal Statutes. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1253

4 Contracts That Limit Employer’s Right to Terminate At-Will . . . . . . . . 12554.1 Agreements to Terminate Only for “Good Cause” Limit

Employer’s Right to Terminate At-Will. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12554.2 “Express” Contracts That Provide Basis for Wrongful Termination Claims. . . 12554.3 “Implied” Contracts That Provide Basis for Wrongful Termination Claims. . . 1256

4.3.1 Employer Policies Creating “Implied” Contracts to Terminate Only for Good Cause. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1256

4.3.2 Employee Length of Service Can Create “Implied” Contract to Terminate Only for Good Cause. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1257

4.3.3 Employer Promises of Job Security, Promotions, Raises, and Bonuses Can Create “Implied” Contract to Terminate Only for Good Cause. . . . . . . . . 1257

4.3.4 Other Employer Documentation Creating “Implied” Contracts to Terminate Only for Good Cause. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1258

4.4 “Good Cause” for Termination Defined. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12584.4.1 Good Faith Investigation Establishes “Good Cause” for Termination. . . . . . . 12594.4.2 Use of Attorney Client and Work Product Privileges to Shield

Investigation Limits Use of Investigation as Defense. . . . . . . . . . . . . . . . . . . . . . 12594.5 Damages Available to Employees for Breach of Contract. . . . . . . . . . . . . . . . . . . . . 1260

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5 Public Policy That Limits Employer’s Right to Terminate At-Will . . . . 12615.1 Overview of Public Policy Limiting Employer Right to Terminate At-Will. . . . 12615.2 Public Policy at Stake Must Be “Fundamental” for Employee

to Succeed on Termination Claim. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12615.3 Public Policy Must Benefit “Public at Large” for Employee to

Succeed on Termination Claim. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12625.4 Public Policy Must Apply to Employer for Employee to

Succeed on Termination Claim. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12635.5 Examples of Terminations That Violate Public Policy. . . . . . . . . . . . . . . . . . . . . . . . . 1263

5.5.1 Termination for Refusing to Support or Assist in Employer’s Unlawful Conduct Violates Public Policy. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1264

5.5.2 Termination for Satisfying a Legal Obligation Violates Public Policy. . . . . . . . 12645.5.3 Termination for Exercising a Legal Right Violates Public Policy. . . . . . . . . . . . . 12645.5.4 Termination for Opposing or Reporting Employer’s Unlawful

Violates Public Policy. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12655.5.5 “Private Dispute” Between Employer and Employee Insufficient t

o Establish Public Policy Claim. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12655.6 Damages Available to Employees for Terminations Violating Public Policy. . . 1265

6 California’s Constructive Discharge Doctrine . . . . . . . . . . . . . . . . . . . . . . . . . 12666.1 Constructive Discharge Transforms Resignation into Discharge. . . . . . . . . . . . . 12666.2 “Intolerable Working Conditions” Defined. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12676.3 “Constructive Termination” Determined by Objective Standard. . . . . . . . . . . . . 12676.4 Demotions, Transfers, Salary Decreases, and Poor Evaluations

Alone Do Not Establish Constructive Termination. . . . . . . . . . . . . . . . . . . . . . . . . . . 12676.5 Employee Must Give Notice to Employer to Establish Constructive

Termination. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12687 Wrongful Discipline . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1268

7.1 California Wrongful Discipline Claims. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12688 Employer Defenses to Wrongful Termination Claims . . . . . . . . . . . . . . . . . . 1268

8.1 Overview of Employer Defenses to Wrongful Termination Claims. . . . . . . . . . . 12688.2 Preemption of Termination Claims by Collective Bargaining Agreement. . . . 1269

8.2.1 Preemption of Retaliation Claims Based on Employee Participation in Union Activity. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1269

8.2.2 Preemption of Employee Claims Against Union. . . . . . . . . . . . . . . . . . . . . . . . . . . 12698.3 Preemption of Airline and Railway Employee

Termination Claims by Federal Law. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12708.4 Preemption of Bank Employee Termination Claims by Federal Law. . . . . . . . . . 12708.5 Preemption of Employee Termination Claims Related to

ERISA-Covered Pension and Other Benefit Plans. . . . . . . . . . . . . . . . . . . . . . . . . . . . 1270

Contents: Chapter 7: Termination and Discipline lxxxi

8.6 Preemption of Injured Worker Termination Claims by California Workers’ Compensation Laws. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1270

8.7 Defense to Employee Damage Claims Based on “After-Acquired Evidence” of Employee Misconduct. . . . . . . . . . . . . . . . . . . . . . . . . . 1271

8.8 Defense to Employee Termination Claims Against Individual Defendant Based on Lack of Employment Relationship. . . . . . . . . . . . . . . . . . . . . . 1272

8.9 Defense to Discrimination Claims Based on Employee Failure to “Exhaust Administrative Remedies.” . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1272

8.10 Defense to Employee Termination Claims Based on Statute of Limitations. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1273

8.11 Defense to Employee Damage Claims Based on Failure to Mitigate Losses. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1273

9 Insurance Coverage for Wrongful Termination Claims . . . . . . . . . . . . . . . 12749.1 Policies to Be Examined for Coverage. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12749.2 Coverage Generally Unavailable in Absence of EPLI Policy. . . . . . . . . . . . . . . . . . . 1274

10 Avoiding Wrongful Termination Claims . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 127510.1 Develop and Implement At-Will Disclaimers to Reduce Risk. . . . . . . . . . . . . . . 127510.2 Incorporate At-Will, After-Acquired Evidence, and Integration

Clauses into Job Application Forms to Reduce Risk. . . . . . . . . . . . . . . . . . . . . . . . . 127610.3 Incorporate At-Will and Integration Clauses

into Job Offer Letters to Reduce Risk. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 127610.4 Incorporate At-Will and Integration Clauses

into Employment Agreements to Reduce Risk. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 127710.5 Employee Handbooks. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1277

10.5.1 Drafting Employee Handbooks to Reduce Termination Risk. . . . . . . . . . . . . 127710.5.2 Incorporate “At-Will Relationship” Section in Handbook to

Reduce Risk. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 127810.5.3 Incorporate At-Will Disclaimer in Handbook Orientation

Period Policy to Reduce Risk. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 127810.5.4 Incorporate At-Will Disclaimer in Handbook Discipline

and Discharge Policies to Reduce Risk. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 127910.5.5 Incorporate At-Will Disclaimer in Handbook “Progressive

Discipline” Policy to Reduce Risk. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 128010.6 Review Performance Evaluation Systems and Documentation

to Reduce Risk. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 128110.6.1 Incorporate “Objective” Standards Into Performance

Evaluation Systems to Reduce Risk. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 128110.6.2 Avoid Pre-Printed Performance Evaluation Forms to Reduce Risk. . . . . . . . 128210.6.3 Integrate Performance Evaluation Forms, Job

Descriptions, and Work History to Reduce Risk. . . . . . . . . . . . . . . . . . . . . . . . . 1283

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10.6.4 Require Narratives with Specific Examples of Strengths, Opportunities, and Goals to Reduce Risk. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1283

10.6.5 Require Review by More Than One Level of Supervision in Cases Involving “Close Calls” or Special Risks. . . . . . . . . . . . . . . . . . . . . . . . 1283

10.6.6 Solicit “Self-Evaluation” from Employee Before Issuing Evaluation to Reduce Risk. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1284

10.6.7 Conduct Evaluation Meeting to Reduce Risk. . . . . . . . . . . . . . . . . . . . . . . . . . . . 128410.6.8 Establish Process for “Appeal” of Evaluation to Reduce Risk. . . . . . . . . . . . . . 128410.6.9 Train Evaluators to Reduce Risk. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 128410.6.10 Maintain Written Performance Evaluations

for Three Years to Reduce Risk. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 128410.6.11 Audit the Evaluation System to Reduce Risk. . . . . . . . . . . . . . . . . . . . . . . . . . . 128510.6.12 Utilize Evaluation System to Support

Personnel Actions and Avoid Litigation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 128510.7 Establish Internal Grievance Policies to Reduce Risk. . . . . . . . . . . . . . . . . . . . . . . . 128510.8 Plan for Termination to Reduce Risk. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 128610.9 Planning for Termination: Checklist of Key Issues to Reduce Risk. . . . . . . . . . 128710.10 Identifying the “High Risk” Termination. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 128910.11 Additional Preventive Measures to Reduce Termination Risk. . . . . . . . . . . . . . 129010.12 Preparing Termination Letters to Reduce Risk. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 129010.13 Conduct Termination Meetings to Reduce Risk. . . . . . . . . . . . . . . . . . . . . . . . . . . 129310.14 Employer Duty to Issue Notice of Change in Relationship. . . . . . . . . . . . . . . . . 129410.15 Employer Duty to Pay Final Wages Timely. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 129410.16 Conduct Exit Interviews to Reduce Risk. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 129410.17 Use of Severance Agreements and Releases to Reduce Risk. . . . . . . . . . . . . . . . 1296

10.17.1 Employers Advised to Seek “General Release” of All Claims in Exchange for Severance Payment. . . . . . . . . . . . . . . . . . . . . . . 1296

10.17.2 Terms and Conditions Commonly Addressed in Severance Agreements. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1296

10.17.3 Release of Age Discrimination Claims. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 129810.17.4 Restrictions on Employee Release of “Wage” Claims. . . . . . . . . . . . . . . . . . 129910.17.5 Special Rules for Release of Private

Attorneys General Act (PAGA) Claims. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 130010.17.6 No Release of Workers’ Compensation Claims Without Board Approval. . . .

130010.17.7 No Release of Unemployment Insurance Claims. . . . . . . . . . . . . . . . . . . . . . 130010.17.8 Release of Claims Violating Public Policy are Null and Void. . . . . . . . . . . 130010.17.9 Release of Unknown Claims Against Employer

Requires Special Release Language. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 130110.17.10 Tax Treatment of Severance Pay. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1301

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10.18 Avoiding Post-Termination Liability. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 130210.18.1 Communication of Termination to Co-Workers and Third Parties. . . . . 130210.18.2 Employer Duty Not to Interfere with Employee Job Search. . . . . . . . . . . . 130210.18.3 Job References. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 130210.18.4 Guidelines for Providing “Substantive” References. . . . . . . . . . . . . . . . . . . . 1303

10.19 COBRA Notice and Coverage Requirements. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 130410.19.1 Federal COBRA Statute Requires Continued Heath Insurance Coverage

Upon Termination or Other “Qualifying Event” for Specified Period. . . 130410.19.2 COBRA Coverage Cost Limited to 102 Percent of

Applicable Group Health Plan Premium. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 130610.19.3 Cal-COBRA Covers Employers with Fewer Than 20 Employees. . . . . . . 130610.19.4 Cal-COBRA May Extend Federal COBRA Coverage

to 36 Months for Larger Employers. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 130610.19.5 Federal and Cal-COBRA Extend Coverage of Dental,

Vision and Other Specialized Insurance Benefits. . . . . . . . . . . . . . . . . . . . . 130610.19.6 Federal and Cal-COBRA Notice Requirements. . . . . . . . . . . . . . . . . . . . . . . 1307

10.20 California Unemployment Insurance (UI) Benefits. . . . . . . . . . . . . . . . . . . . . . . . 130710.20.1 Denial of Unemployment Benefits for

Termination Based on “Misconduct.” . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 130810.20.2 Employer Duty to Provide Benefits Information to Employees. . . . . . . . . 1309

11 Reductions in force. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 130911.1 Overview of Laws Regulating Reductions in Force. . . . . . . . . . . . . . . . . . . . . . . . . . 130911.2 Planning for Reductions in Force to Reduce Risk. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1311

11.2.1 Include Risk Management Objectives in Restructuring Plan. . . . . . . . . . . . . 131111.2.2 Consider and Document Alternatives to Involuntary Terminations. . . . . . . 131111.2.3 Develop “Risk-Appropriate” Selection Criteria. . . . . . . . . . . . . . . . . . . . . . . . . . 131211.2.4 Review Planned Terminations for Disparate

Impact Discrimination and Other Legal Risks. . . . . . . . . . . . . . . . . . . . . . . . . . . 131311.2.5 Centralize Communications to Reduce Risk. . . . . . . . . . . . . . . . . . . . . . . . . . . . 131311.2.6 Develop Plan for Implementation Including Legally

Required Notices and Paperwork to Reduce Risk. . . . . . . . . . . . . . . . . . . . . . . . 131411.3 Overview of California and Federal WARN Act Requirements. . . . . . . . . . . . . . . 1314

11.3.1 Comparison of Federal and California WARN Acts. . . . . . . . . . . . . . . . . . . . . . 1314Table 13: Comparison of California and Federal WARN Laws . . . . . . . . . . . . . . . . . . 1315

11.3.2 Employers Covered by Federal WARN Act. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 131911.3.3 Employers Covered by California WARN Act. . . . . . . . . . . . . . . . . . . . . . . . . . . 131911.3.4 No Coverage for Independent Contractors —

Employment Relationship Required. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 132011.3.5 Events Triggering Notice Requirement Under Federal WARN Act. . . . . . . 1320

lxxxiv Contents: Chapter 7: Termination and Discipline

11.3.6 Employer Duty to Aggregate Terminations Over 90-Day Period if Job Losses Fail to Meet 30-Day “Mass Layoff” or “Plant Closure” Requirements. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1321

11.3.7 Method for Aggregating Employment Losses in 30 and 90-day Windows to Determine “Mass Layoff” or “Plant Closure.” . . . . . . . . . . . . . . . 1322

11.3.8 Events Triggering Notice Requirements Under California WARN Act. . . . 132211.3.9 Amount of Notice Required Under California and Federal WARN. . . . . . . 132311.3.10 Timing of Notice and Method of Service Required. . . . . . . . . . . . . . . . . . . . . 132311.3.11 Persons and Entities Entitled to Notice. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 132411.3.12 Required Content of WARN Act Notices. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 132411.3.14 Employer Liability for Failure to Give Required WARN Notice. . . . . . . . . 132811.3.13 Exceptions to WARN Permitting Less Than 60 Days’ Notice. . . . . . . . . . . . 1326

11.4 Avoiding Union Issues in Reduction in Force. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 132911.5 Use of Severance Agreements to Reduce Risk. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1331

12 Bankruptcy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 133112.1 Bankruptcy Issues Related to Termination. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 133112.2 Priority for Unpaid Wages and Benefits. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 133112.3 Priority for Other Employment Related Benefits and Agreements. . . . . . . . . . 1332

13 Sale or Cessation of Business . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 133213.1 Sale or Cessation of Business. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 133213.2 State and Federal WARN Acts May Not Apply When Business Sold. . . . . . . . 133313.3 Duty to Pay Out Vacation at Termination

May Not Be Required When Business Sold. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 133313.4 COBRA Coverage Requirements May Not Apply When Business Sold. . . . . . 1334

14 California Notice Requirements for Termination . . . . . . . . . . . . . . . . . . . . . 133414.1 Employer Duty to Provide Written Notice

of Change in Employment Relationship. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 133414.2 Employer Duty to Provide Written Notice

of Unemployment Insurance Benefit Rights. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 133514.3 Federal and Cal-COBRA Notice Requirements. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 133514.4 Employer Duty to Distribute Description of State Health Insurance

Premium Program to Terminated Employees. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 133614.5 Federal and Cal-WARN Notice Requirements. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1336Endnotes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1337

Index . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1355

Table of CasesOnly cases discussed in the text are included in the table. References are to section numbers (e.g., 2:12.5.1 refers to section 12.5.1 in Chapter 2).

Abshire v. County of Kern, 6:16.3.15Anderson v. Mt. Clemens Pottery, 6:13.20Arechiga v. Dolores Press, Inc., 6:15.6Armendariz v. Foundation Health Psychcare

Servs., 2:12.4.1, 12.4.2AT&T Mobility LLC v. Concepcion, 2:12.5.1Banner Health Sys., 3:11.8.5Barnhill v. Saunders, 6:9.5Bell v. Farmers Ins. Exchange (Bell II), 6:16.4.9Borello. See S.G. Borello & Sons, Inc. v.

Department of Indus. RelationsBratt v. County of Los Angeles, 6:16.4.9Brinker Rest. Group Inc. v. Superior Court,

6:13.1, 18.2.1, 18.3, 18.3.1, 18.4, 18.4.1, 19.3–19.5

Brown v. Ralphs Grocery Co., 2:12.5.1Camp v. Jeffer, Mangels, Butler & Marmaro,

7:8.7Cassista v. Community Foods, Inc., 4:3.2Christopher v. SmithKline Beecham, 6:16.8.4City of. See name of cityConley v. PG&E, 6:16.3.15Cotran v. Rollins Hudig Hall Int’l, Inc.,

3:11.2.1, 11.3Dalheim v. KDFW-TV, 6:16.4.9DiGiacinto v. Ameriko-Omser Corp., 7:6.4D.R. Horton, 2:12.5.1Dukes v. Wal-Mart, 2:8.5.1Foley v. Interactive Data Corp., 7:5.3Ford Motor Co. v. EEOC, 7:3.7Gentry v. Superior Court, 2:12.5.1Griggs v. Duke Power, 2:5.2Guz v. Bechtel, 3:1.8.3Harris v. Superior Court, 6:16.4.9Hodge v. AON Ins. Servs., 6:16.4.9Hunter v. Up-Right, 7:5.5.5

Iskanian v. CLS Transp. Los Angeles, 2:12.5.1Jennings v. Marralle, 7:5.4Lindow v. United States, 6:13.20Madera Police Officers Ass’n v. City of

Madera, 6:13.15.1Martinez v. Combs, 1:6.1.1, 8.1, 8.3; 6:3.1, 3.5McKennon v. Nashville Banner, 7:8.7Moorpark, City of v. Superior Court, 7:8.6Morillion v. Royal Packing, 6:13.4.3Nationwide Mut. Ins. Co. v. Darden, 1:7.2.4NLRB v. See name of opposing partyPaton v. Advanced Micro Devices, 5:3.8Price Waterhouse v. Hopkins, 3:4.2.6, 4.6Ramirez v. Yosemite Water, 6:16.3.7, 16.4.12,

16.5.8, 16.8.1, 16.8.3Reynolds v. Bement, 6:3.4Scott v. PG&E, 7:7.1S.G. Borello & Sons, Inc. v. Department of

Indus. Relations, 1:1.1, 2.4, 6.1, 6.1.1, 7.1, 8.1, 9.1, 10.1, 11.1; 4:12.1.1; 5:7.3.1; 6:3.1, 3.5

Stevenson v. Superior Court, 7:5.2Stolt-Nielsen S.A. v. AnimalFeeds Int’l Corp,

2:12.5Suastez v. Plastic Dress-up Co., 5:2.3, 2.4,

2.15, 3.3Sullivan v. Oracle, 6:2.5, 2.6Sutton v. United Airlines, Inc., 4:3.7.1, 4.4.2Toyota Motor Mfg. v. Williams, 4:3.3.1TWA v. Hardison, 3:4.5.1Upjohn v. United States, 3:11.10.1Walling v. Portland Terminal Co., 6:13.12Watson v. Fort Worth Bank & Trust, 2:8.5.1;

7:10.6.1Weingarten, Inc.; NLRB v., 3:11.8.3

Table of Cases lxxxv

lxxxvi Table of Statutes and Regulations

Table of Statutes and RegulationsOnly statutes and regulations discussed in the text are included in the table. References are to section numbers (e.g., 2:4.5.3, 4.6.4 refers to sections 4.5.3 and 4.6.4 in Chapter 2).

United States Code (U.S.C.)

Aliens and Nationality8 U.S.C. § 1101 et seq. . . . 1:2.48 U.S.C. § 1324(b) . . . 7:3.5

Commerce and Trade15 U.S.C. § 1674 . . . 7:3.515 U.S.C. § 1681d(b) . . . 2:4.7.215 U.S.C. § 1681i . . . 2:4.5.3, 4.6.415 U.S.C. § 1681j . . . 2:4.5.3, 4.6.415 U.S.C. § 2622 . . . 7:3.5

Internal Revenue Code26 U.S.C. § 3111 . . . 1:2.426 U.S.C. § 3306(i) . . . 1:2.4

Judiciary and Judicial Procedure28 U.S.C. § 1875 . . . 7:3.5

Labor29 U.S.C. § 141–187 . . . 7:3.529 U.S.C. § 151 et seq. . . . 1:2.429 U.S.C. § 158 . . . 7:3.529 U.S.C. § 201 et seq. . . . 1:2.429 U.S.C. § 207(i) . . . 6:16.229 U.S.C. § 213(a)(1) . . . 6:16.229 U.S.C. § 213(a)(3) . . . 6:16.229 U.S.C. § 213(a)(5) . . . 6:16.229 U.S.C. § 213(a)(6) . . . 6:16.229 U.S.C. § 213(a)(7) . . . 6:16.229 U.S.C. § 213(a)(8) . . . 6:16.229 U.S.C. § 213(a)(10) . . . 6:16.229 U.S.C. § 213(a)(12) . . . 6:16.229 U.S.C. § 213(a)(15) . . . 6:16.229 U.S.C. § 213(a)(16) . . . 6:16.229 U.S.C. § 213(a)(17) . . . 6:16.229 U.S.C. § 213(b)(1) . . . 6:16.229 U.S.C. § 213(b)(2) . . . 6:16.229 U.S.C. § 213(b)(3) . . . 6:16.229 U.S.C. § 213(b)(5) . . . 6:16.229 U.S.C. § 213(b)(6) . . . 6:16.229 U.S.C. § 213(b)(9) . . . 6:16.229 U.S.C. § 213(b)(10)(A) . . . 6:16.229 U.S.C. § 213(b)(10)(B) . . . 6:16.229 U.S.C. § 213(b)(11) . . . 6:16.229 U.S.C. § 213(b)(12) . . . 6:16.2

29 U.S.C. § 213(b)(13) . . . 6:16.229 U.S.C. § 213(b)(14) . . . 6:16.229 U.S.C. § 213(b)(15) . . . 6:16.229 U.S.C. § 213(b)(16) . . . 6:16.229 U.S.C. § 213(b)(17) . . . 6:16.229 U.S.C. § 213(b)(20) . . . 6:16.229 U.S.C. § 213(b)(21) . . . 6:16.229 U.S.C. § 213(b)(24) . . . 6:16.229 U.S.C. § 213(b)(27) . . . 6:16.229 U.S.C. § 213(b)(28) . . . 6:16.229 U.S.C. § 213(b)(29) . . . 6:16.229 U.S.C. § 213(b)(30) . . . 6:16.229 U.S.C. § 213(d) . . . 6:16.229 U.S.C. § 213(e) . . . 6:16.229 U.S.C. § 213(f ) . . . 6:16.229 U.S.C. § 213(h) . . . 6:16.229 U.S.C. § 213(i) . . . 6:16.229 U.S.C. § 213(j) . . . 6:16.229 U.S.C. § 215(a)(3) . . . 7:3.529 U.S.C. § 621 et seq. . . . 1:2.429 U.S.C. § 621–634 . . . 7:3.529 U.S.C. § 660(c) . . . 7:3.529 U.S.C. § 1140 . . . 7:3.529 U.S.C. § 1801–1855 . . . 7:3.529 U.S.C. § 2001–2009 . . . 7:3.529 U.S.C. § 2101–2109 . . . 7:3.529 U.S.C. § 2102 . . . 7:11.3.1229 U.S.C. § 2601 et seq. . . . 5:1.129 U.S.C. § 2601–2654 . . . 7:3.5

Mineral Lands and Mining30 U.S.C. § 815(c) . . . 7:3.5

Navigation and Navigable Waters33 U.S.C. § 1367 . . . 7:3.5

Public Health and Welfare42 U.S.C. § 300(j)–309(i) . . . 7:3.542 U.S.C. § 1981 . . . 7:3.542 U.S.C. § 1983 . . . 7:3.542 U.S.C. § 2000(e) . . . 1:2.4; 5:1.1; 7:3.542 U.S.C. § 5851 . . . 7:3.542 U.S.C. § 6971 . . . 7:3.542 U.S.C. § 7622(a) . . . 7:3.542 U.S.C. § 9610 . . . 7:3.542 U.S.C. § 12101–12213 . . . 7:3.5

Table of Statutes and Regulations lxxxvii

42 U.S.C. § 12111 et seq. . . . 5:1.1

Railroads45 U.S.C. § 152 . . . 7:3.545 U.S.C. § 20109 . . . 7:3.5

Transportation49 U.S.C. § 31502 . . . 6:16.10.2

Veterans Benefits38 U.S.C. § 4301 et seq. . . . 5:1.138 U.S.C. § 4301–4333 . . . 7:3.5

Code of Federal Regulations (C.F.R.)29 C.F.R. § 516 . . . 6:23.3.129 C.F.R. § 541.107 . . . 6:16.3.1029 C.F.R. § 541.207 . . . 6:16.3.10, 16.4.13, 16.5.1229 C.F.R. § 541.305(a) . . . 6:16.5.1229 C.F.R. § 776.11 . . . 6:3.2.329 C.F.R. § 1607 et seq. . . . 3:4.4.3

California Statutes

Cal. Business & Professions Code§ 7000–7191 . . . 1:6.2, 8.1.1§ 7000 . . . 1:8.1.1§ 9998.1–9998.8 . . . 7:3.5§ 16600 et seq. . . . 7:5.2§ 16600 . . . 2:2.7

Cal. Civil Code§ 56.20(b) . . . 7:3.5§ 66.10(a) . . . 7:3.5§ 1542 . . . 7:10.17.9§ 1719 . . . 6:6.4

Cal. Educ. Code§ 48900.1 . . . 7:3.6

Cal. Elec. Code§ 1655 . . . 7:3.5§ 12312 . . . 5:1.1§ 14000 et seq. . . . 5:1.1; 7:3.6

Cal. Gov’t Code§ 233(c) . . . 7:3.5§ 234 . . . 7:3.5§ 12900–12996 . . . 7:3.5§ 12940 et seq. . . . 5:1.1§ 12940 . . . 1:2.4§ 12940(e) . . . 7:3.5§ 12940(j)(1) . . . 3:6.8, 6.9§ 12940(j)(5) . . . 3:10.3.1§ 12940(k) . . . 3:6.9, 8.1§ 12940(m) . . . 4:3.8.1§ 12940(n) . . . 4:3.8.1§ 12945 . . . 5:1.1

§ 12945.1 . . . 1:2.4; 5:1.1§ 12945.2 . . . 1:2.4; 7:3.5§ 12950 . . . 3:9.4§ 12950.1 . . . 3:10.12.1§ 12962.2 . . . 3:6.2.6

Cal. Health & Safety Code§ 11590 . . . 2:5.1.3§ 25955(a) . . . 7:3.5§ 120980 . . . 7:3.5

Cal. Labor Code§ 96(k) . . . 7:3.5, 5.5.3§ 98.6–98.7 . . . 7:3.5§ 98.6 . . . 7:3.6§ 132a . . . 4:12.6; 7:8.6§ 132(a) . . . 7:3.5§ 200–243 . . . 6:4.9.4, 5.10, 6.1.4, 9.13.2, 10.8.6§ 200–272 . . . 1:2.4; 6:2.1§ 200 . . . 6:5.6.1§ 201–203 . . . 6:2.1§ 201 . . . 6:3.3.1, 4.9.6, 5.1, 5.2.1–5.2.4, 5.2.6, 5.2.8, 5.2.9, 5.3.1, 5.4, 5.7.1, 5.7.2, 5.7.5, 5.10, 5.10.2, 8.2, 9.13.4, 12.2.5, 12.7.3; 7:5.2§ 201.3 . . . 6:4.6.8, 4.9.1, 4.9.2, 4.9.4, 4.9.7, 5.2.4, 5.8, 5.10, 5.10.2§ 201.5 . . . 6:5.10, 5.10.2§ 201.7 . . . 6:5.10, 5.10.2§ 202 . . . 6:3.3.1, 4.9.6, 5.2.1, 5.2.4, 5.2.7, 5.3, 5.3.1, 5.3.4, 5.4, 5.7.3, 5.7.7, 5.10, 5.10.2, 6.2, 8.2, 12.7.3; 7:5.2§ 203 . . . 6:3.3.1, 4.6.8, 4.9.6, 5.1, 5.2.1, 5.2.4, 5.4, 5.6, 5.6.5, 5.7–5.10, 5.10.2, 5.10.3, 6.4, 9.13.4, 12.2.5, 12.7.3; 7:5.2, 10.16, 10.17.2§ 203.1 . . . 6:5.10.2, 6.4§ 203.5 . . . 6:5.10, 5.10.2§ 203(b) . . . 6:5.10§ 204–205.5 . . . 6:2.1§ 204 . . . 6:4.4, 4.6.1–4.6.6, 4.9.1, 4.9.2, 4.9.4, 4.9.7, 5.2.5, 8.2§ 204.1 . . . 6:4.6.12, 4.9.1, 4.9.4, 4.9.7§ 204.2 . . . 6:4.9.1, 4.9.4, 4.9.7§ 204b . . . 6:4.9.1, 4.9.2, 4.9.4, 4.9.7§ 205 . . . 6:4.9.1, 4.9.2, 4.9.4, 4.9.7§ 205.5 . . . 6:4.9.1, 4.9.4, 4.9.7§ 206 . . . 6:8.2§ 206.5 . . . 6:8.3; 7:10.17.4§ 207 . . . 6:4.5, 4.9.2, 23.1.1§ 208 . . . 6:4.9.7, 5.5§ 209 . . . 6:4.8.1, 4.9.7§ 210 . . . 6:4.9.1§ 211 . . . 6:4.9.1

lxxxviii Table of Statutes and Regulations

§ 212 . . . 6:6.1, 6.1.1–6.1.3, 6.1.5, 6.2, 6.3, 6.3.2, 9.1, 9.13.1, 9.13.2, 9.13.5§ 213 . . . 6:6.2, 6.3.2§ 215 . . . 6:4.9.2, 6.1.3§ 216 . . . 6:4.9.3, 9.1, 9.13.1, 9.13.2§ 218 . . . 6:5.10, 6.1.4, 9.13.2, 10.8.6, 18.17§ 218.5 . . . 6:4.9.4, 5.10, 6.1.4, 9.13.2, 13.13, 18.17§ 220 . . . 6:3.3.1§ 221 . . . 6:2.1, 9.1, 9.1.1, 9.2, 9.13.1, 9.13.2, 9.13.5, 12.2.8, 14.4.2, 14.5.1§ 222 . . . 6:2.1, 9.1, 9.13.1, 9.13.2, 9.13.5, 14.4.2, 14.5.1§ 222.5 . . . 6:9.13.5§ 223 . . . 6:2.1, 9.1, 9.1.1, 9.2, 9.13.1, 9.13.2, 9.13.5, 14.4.2, 14.5.1§ 224 . . . 6:2.1, 9.1, 9.1.1, 9.2, 9.3, 9.3.1, 9.6, 9.13.1, 9.13.2, 9.13.5§ 225.5 . . . 6:4.9.3, 6.1.2, 9.13.1§ 226–226.6 . . . 6:2.1§ 226 . . . 2:9.3.6; 6:2.1, 4.6.5, 4.9.5, 5.1.4, 6.3.2, 9.13.3, 10.1, 10.4, 10.6, 10.7, 10.8.2–10.8.4, 10.8.6, 22.3§ 226.3 . . . 6:9.13.3, 10.8.5, 10.8.6§ 226.6 . . . 6:10.8.4, 10.8.6§ 226.7 . . . 6:2.1, 18.2, 18.2.2, 18.15, 18.17, 18.18, 19.1, 19.8, 19.12§ 226.8 . . . 1:8.2.3, 8.2.4§ 226(a) . . . 6:9.13.3, 10.4–10.6, 10.8.1–10.8.3, 10.8.5, 10.8.7§ 226(b) . . . 6:10.6§ 226(c) . . . 6:10.6§ 226(e) . . . 6:10.8.1–10.8.3, 10.8.7§ 226(g) . . . 6:10.8.1§ 226(h) . . . 6:10.8.1§ 227.3 . . . 5:2.14, 2.16, 3.3, 3.3.2; 7:10.16, 10.17.2§ 230 . . . 7:3.5§ 230.1(a) . . . 5:1.1; 7:3.5§ 230.2 . . . 5:1.1§ 230.3(a) . . . 5:1.1§ 230.4(a) . . . 5:1.1§ 230.7–230.8 . . . 7:3.6§ 230.7 . . . 5:1.1§ 230.8 . . . 5:1.1§ 230(a) . . . 5:1.1§ 230(b) . . . 5:1.1; 7:3.5§ 230(c) . . . 5:1.1; 7:3.5§ 232 . . . 7:3.6§ 233 . . . 5:1.1, 3.1, 5.2, 5.3, 5.3.3, 5.3.5–5.3.10§ 300 . . . 6:9.5; 7:13.3§ 350–356 . . . 6:2.1§ 350 . . . 6:11.2

§ 351 . . . 6:11.3, 11.4.1, 11.5–11.7, 11.14§ 353 . . . 6:11.14§ 354 . . . 6:11.14§ 400 et seq. . . . 6:9.8§ 401 . . . 2:3.4.2§ 402 . . . 2:3.4.3§ 432 . . . 6:22.1§ 432.2 . . . 2:8.5.14; 7:3.6§ 432.5 . . . 2:3.1.10, 8.5.15§ 432.7 . . . 7:3.5§ 450 . . . 7:3.6§ 500–856 . . . 1:2.4; 6:2.1§ 510 . . . 6:2.1, 3.4, 13.4.1, 16.1.1§ 511 . . . 6:2.1, 15.4.2§ 511(a) . . . 6:17.10.4§ 512 . . . 6:2.1, 13.7, 18.3, 18.14, 18.15, 18.17, 18.18§ 512(a) . . . 6:18.1§ 512(d) . . . 6:18.15§ 513 . . . 6:15.4.1§ 514 . . . 6:2.1, 16.1.1, 16.11, 18.10, 18.11, 18.15§ 515 . . . 6:2.1, 16.1.1§ 515.5 . . . 6:2.1, 16.4.10, 16.6§ 515.6 . . . 6:2.1, 16.1.1, 16.11§ 515.8 . . . 6:2.1, 16.1.1§ 515(d) . . . 6:14.4.4, 15.6§ 558 . . . 6:3.4, 18.17, 18.18§ 800 . . . 6:2.1§ 921–923 . . . 7:3.5§ 970 . . . 2:2.5.11§ 976 . . . 2:2.5.12§ 980 . . . 3:11.8.6; 7:3.6§ 1024.5 . . . 2:4.1.1§ 1024.5(a) . . . 2:4.4.2, 4.6.1, 4.6.2§ 1025 et seq. . . . 5:1.1§ 1025–1028 . . . 7:3.5§ 1025 . . . 5:7.7.6; 7:5.2§ 1030 et seq. . . . 5:6.13§ 1040–1044 . . . 7:3.5§ 1041 et seq. . . . 5:1.1§ 1051–1052 . . . 7:3.5§ 1054 . . . 7:3.5§ 1101–1102 . . . 7:3.5§ 1102.5 . . . 7:3.6, 5.5.1§ 1102.8 . . . 6:23.1.1§ 1140 et seq. . . . 1:2.4§ 1140–1166.3 . . . 7:3.5§ 1171–1205 . . . 1:2.4; 6:2.1§ 1171 . . . 6:16.1.1§ 1171.5 . . . 3:4.4.6§ 1174 . . . 1:8.3; 6:2.1, 10.4, 10.9.1, 23.2.2

Table of Statutes and Regulations lxxxix

§ 1174.5 . . . 6:10.9.5§ 1174(c) . . . 6:10.9.5§ 1174(d) . . . 6:10.9.5§ 1183 . . . 6:23.1.1§ 1193 . . . 6:2.2.4§ 1193.5–1197.1 . . . 6:2.1§ 1194 . . . 6:2.1, 3.4, 3.5, 4.9.4, 4.9.8, 14.2, 14.5, 14.5.1, 15.12, 15.12.1, 18.17§ 1194.2 . . . 6:2.2.4, 14.5§ 1195 . . . 6:2.2.4§ 1197 . . . 6:14.5.1§ 1197.1 . . . 6:3.4, 4.9.8, 14.5, 14.5.1§ 1197.1(a) . . . 6:2.2.4§ 1197.5 . . . 6:4.9.1§ 1198 . . . 6:2.2.4§ 1198.3(b) . . . 7:3.5§ 1198.5 . . . 6:22.2, 22.2.2–22.2.6, 22.2.9–22.2.12, 23.2.3; 7:10.6.10§ 1199 . . . 6:14.5, 14.5.1, 15.12, 15.12.1§ 1283–1312 . . . 6:2.1§ 1390–1399 . . . 6:2.1§ 1401 . . . 7:11.3.12§ 1510 . . . 5:1.1§ 1682(b) . . . 6:10.1, 10.8.2§ 1695(7) . . . 6:23.1.1§ 1773.2 . . . 6:23.1.1§ 2673.1 . . . 6:14.2.9§ 2698–2699.5 . . . 6:2.1§ 2699.3 . . . 6:4.9.7, 5.10.2, 6.1.5, 9.13.5, 10.8.7, 14.5.1, 21.9§ 2699.5 . . . 6:4.9.7, 5.10.2, 6.1.5, 9.13.5, 10.8.7, 14.5.1, 21.9§ 2750 . . . 1:6.2§ 2750.5 . . . 1:6.2, 8.1.1§ 2750.5(c) . . . 1:8.1.1§ 2802 . . . 6:2.1, 21.1, 21.3, 21.7, 21.9§ 2804 . . . 6:21.3.1, 21.7§ 2810.5 . . . 2:9.3.7, 9.3.8§ 2860 . . . 2:11.3.2§ 2870–2872 . . . 7:3.5§ 2870 . . . 2:11.3.4§ 2871 . . . 2:11.3.5§ 2872 . . . 2:11.3.4§ 2922 . . . 7:2.1§ 2929 . . . 6:9.5.2§ 2929(b) . . . 6:2.1; 7:3.5§ 3070 et seq. . . . 3:3.8§ 3200 et seq. . . . 1:2.4; 5:1.1§ 3351 et seq. . . . 1:6.3§ 3353 . . . 3:2.5; 5:7.3.1

§ 3550 . . . 4:15.2; 6:23.1.1§ 3751 . . . 6:12.2.8§ 6310–6312 . . . 7:3.6§ 6310 . . . 7:3.6§ 6328 . . . 6:23.1.1§ 6404.5(c)(1) . . . 6:23.1.1

Cal. Mil. & Vet. Code§ 394 et seq. . . . 5:1.1§ 394 . . . 7:3.5§ 395.10 . . . 5:1.1

Cal. Penal Code§ 637.3 . . . 7:3.6§ 667.5(c) . . . 5:17.1§ 1161.8 . . . 7:3.5§ 1192.7(c) . . . 5:17.1

Cal. Rev, & Tax Code§ 18401 et seq. . . . 1:2.4

Cal. Unemp. Ins. Code§ 2061 et seq. . . . 1:2.4§ 3300 et seq. . . . 1:2.4

California Regulations

Cal. Code of Regulations (C.C.R.)Title 8

§ 1512 . . . 6:23.1.1§ 3204 . . . 6:23.1.1§ 9881 . . . 6:23.1.1§ 9981 . . . 4:15.2§ 11010 . . . 6:2.2§ 11010–11100 . . . 1:2.4§ 11020 . . . 6:2.2§ 11030 . . . 6:2.2, 13.16§ 11040 . . . 6:2.2, 13.7.1, 13.18.1§ 11050 . . . 6:2.2, 13.7.1, 13.18, 13.18.1§ 11060 . . . 6:2.2§ 11070 . . . 6:2.2§ 11080 . . . 6:2.2§ 11090 . . . 6:2.2§ 11100 . . . 6:2.2§ 11110 . . . 6:2.2§ 11120 . . . 6:2.2§ 11130 . . . 6:2.2§ 11140 . . . 6:2.2§ 11150 . . . 6:2.2§ 11160 . . . 6:2.2§ 11170 . . . 6:2.2§ 14300 . . . 6:23.1.1