How much pay does an employer have to give a non-exempt employee under CA law on the employee’s termination day if the employee is terminated prior to the end of his or her shift? If the employee works more than half his or her shift before the termination, then the employee must be paid for the hours actually worked. If the employee works less than half of the shift, then he or she is owed reporting time pay equal to half the employee’s usual or scheduled day’s pay, with a minimum of 2 hours and a maximum of 4 hours required. Thus, for example, an employee who normally works an eight-hour day (or longer) would be owed four hours of pay, and an employee who normally works 3 hours (or less) would be owed 2 hours of pay. There is an exception to this rule if the employee is called to a termination meeting on a day the employee is not scheduled to work. In that circumstance, the employee is owed only two hours pay based on the minimum reporting time pay requirement (according to a new California Court of Appeal case, Price v. Starbucks). Because these rules are tricky, and can lead to a dispute, an employer wanting to be absolutely safe may choose to pay the terminated employee all of the wages he or she would have earned on the termination day, regardless of when during the shift the employee is terminated. Although not required and somewhat more costly, such a decision can avoid disputes based on errors or misunderstandings. –Adam K. Treiger
Employee Handbooks
In California, Employee handbooks can be an important tool to protect employers from employment law liability. A properly drafted employee handbook can maintain management discretion, clearly communicate the employer’s expectations, and provide significant protection against discrimination, harassment, retaliation and wage and hour lawsuits. Every employer, no matter how small, should consider creating and maintaining an employee handbook. However, employee handbooks can get employers into trouble, if they are not careful. It is better for an employer not to have an employee handbook at all, then to have an employee handbook that (i) is not drafted or at least revised by a qualified employment law attorney, (ii) is not updated in concert with such an attorney every year or two, (iii) provides little flexibility to management, and/or (iv) contains policies that are not judiciously followed by the employer. Employee handbooks, if created and used correctly, can be very beneficial to employers. However, if a handbook is ill conceived, neglected or abused, it can defiantly cause more problems for the employer than it solves. –Adam K. Treiger
Employment Agreements for Rank In File Employees
It is a good idea for all employers to have employment agreements with all of their employees, not just their high-level employees. Employment agreements with rank-in-file employees need not be lengthy, but they should contain the provisions regarding: (i) at will employment, (ii) non-disclosure, (iii) job title and wage, (iv) benefits description (or incorporation of an employee handbook), (v) dispute resolution (e.g., choice of law, jurisdiction, venue and, in some circumstances, arbitration), and (vi) general contracting principles (e.g., no oral modification, no waiver, entire agreement, severability, etc.). These contracts need only be 1-2 pages long, but, if properly drafted, they can really help to reduce an employer’s potential liability if an employee files a lawsuit, and they can help to solidify an employer’s rights in its trade secrets. —Adam Treiger
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