The 2021 fourth quarter edition of The Californian: The Quarterly Newsletter of CALSAGA is now available!
As an association we strive to keep you up-to-date on relevant information for your business. Please see information below regarding association advocacy on the matters of AB 2220/Firearm Assignment and mandatory arbitration agreements.
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In September, CALSAGA Board of Directors met with the Department of Justice to request an updated bulletin regarding the assignment of firearms to licensed security officers by Private Patrol Operators.
We are glad to report that an update has been provided. We strongly encourage you to print a copy for all armed officers to carry on their person while on duty and to replace all previous versions of the bulletin with the one linked below.
The first version of the bulletin was issued in 2017 and was a victory in a hard-fought battle by CALSAGA. This bulletin provides reassurance to members who employ armed officers. AB 2220 allows a Private Patrol Operator to be a registered owner of a firearm. Additionally, this bill allows a security officer to be assigned a firearm by the PPO and for a firearm custodian to be designated by the PPO. Previous practices and statutes authorized the purchase, registration, and ownership of firearms by an individual, but not by a business entity. AB 2220 authorized business ownership and registration of firearms in the case of PPOs who are actively providing armed private contract security services. A PPO may assign firearms it owns to employees who are licensed to carry firearms by the Bureau of Security and Investigative Services.
As a result of AB 2220, a problem presented itself because the current Dealer Record of Sale (DROS) Entry System (DES) is not capable of recognizing a business as a firearm purchaser or owner. The Department of Justice intends to modify the DES and Automated Firearm System (AFS) to allow a PPO to be listed as the purchaser and registered owner of a firearm. Additionally, the DOJ intends to create a process for PPOs to submit a Certificate of Assignment to identify the employee of the PPO in AFS who has been assigned a firearm owned by the PPO. At this time there is no anticipated completion date for this project and previous anticipated completion dates have not been met.
Those intentions were stated in the bulletin to law enforcement agencies. Furthermore, the bulletin cautioned that law enforcement personnel may continue to encounter armed security officers who have the requisite permits and qualifications to carry a firearm in the course of their duties, but who are not actually the registered owners of the firearm. Law enforcement agencies are advised that an assignment of a firearm to an eligible and licensed security officer by a PPO is not a violation of Penal Code 27545.
Please remind all armed officers to carry this bulletin on their person while on duty.
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PAGA reform continues to be on the association’s agenda. Recently the California Chamber of Commerce (CalChamber) approached the association regarding an opportunity to support their AB 51 litigation efforts. This is an avenue for us to fight PAGA claims. CALSAGA made a contribution of $15,000 to support these efforts and to protect our members. That would not have been possible without the continued financial support of our members.
AB 51 which was signed into law in October 2019 precludes employers from enforcing arbitration agreements made as a condition of employment—and making it a crime for businesses to do so—even if workers may opt out of arbitration. Previously a temporary restraining order was issued however a recent ninth circuit court decision may allow AB 51 to go into effect. The CalChamber is fighting this and CALSAGA will continue to monitor the situation and provide updates to you as they are available.
Registration to the conference includes access to a Live Q&A Session with BSIS Chief Lynne Andres, Deputy Chief Sam Stodolski and Deputy Chief Gloriela Garcia.
In addition these sessions will include Live Q&A:
Jaimee K. Wellerstein, Esq. is a Partner at Bradley & Gmelich LLP, and the Head of the firm’s Employment Department. Jaimee concentrates her practice in representing employers in all aspects of employment law, including defense of wage and hour class actions, PAGA claims, discrimination, retaliation, harassment, wrongful discharge, misclassification, and other employment related lawsuits. She also provides employment counseling and training in all of these areas.
Jaimee routinely represents employers in federal and state courts and in arbitration proceedings throughout the state, as well as at administrative proceedings before the Equal Employment Opportunity Commission, the California Department of Labor Standards Enforcement, the United States Department of Labor, and other federal and state agencies.
Jaimee assists as a Legal Advisor to CALSAGA, and is a member of ASIS International. She is rated AV-Preeminent by Martindale-Hubbell, the highest peer rating available. jwellerstein@bglawyers.com
Early Bird Discount Ending Soon
The Early Bird Discount has been extended to Friday, September 10th.
Register now.
For only $39 you’ll gain access to the Virtual Vendor Hall, all conference sessions and Live Q&A sessions, Virtual Happy Hour hosted by the CALSAGA Ambassador Committee and more!
Not available during the days of the conference? No problem! Conference sessions will be available for two weeks following the event.
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As an association we strive to keep you up-to-date on relevant information for your business. In case you missed it in the latest edition of The Californian: The Quarterly Newsletter of CALSAGA please review the following important information below from CALSAGA Network Partner Bradley & Gmelich.
On July 15, 2021, the California Supreme Court held that if an employer fails to provide a legally compliant meal period or rest break to an employee, the wage premium owed to the employee must be paid at the employee’s “regular rate of compensation,” which includes not just hourly wages but all nondiscretionary payments for work performed by the employee. The Court also held that its decision will be retroactive.
The Case
Jessica Ferra worked as an hourly bartender for Loews Hollywood Hotel. She received hourly wages plus quarterly nondiscretionary incentive payments. If an hourly employee was not provided a compliant meal or rest break, Loews paid the employee an hour of pay at the employee’s base hourly rate. Loews argued this was the “regular rate of compensation” mandated by Labor Code section 226.7(c).
In 2015, Ferra filed a class action lawsuit, arguing that nondiscretionary incentive payments should be factored into the regular rate of compensation for purposes of meal and rest break premiums. The trial court and Court of Appeal agreed with Loews that the “regular rate of compensation” was not synonymous with the “regular rate of pay” used in Labor Code section 510(a) governing overtime. Ferra appealed to the Supreme Court, and the instant ruling followed.
The Supreme Court discussed the history and evolution of the wage orders as well as Labor Code section 226.7 extensively as the basis for its holding. The Court noted that neither the Labor Code nor Wage Order No. 5-2001 define the terms and the words could reasonably be construed to mean hourly wages or wages plus nondiscretionary payments as is the case under Labor Code section 510(a) for calculation over the regular rate of pay for purposes of overtime.
The Supreme Court also relied on the courts’ and DLSE’s understanding of two different terms, that “regular rate” under the Federal Labor Standards Act (“FLSA”) and “regular rate of pay” in Labor Code section 510 have the same meaning. “Regular rate” under the FLSA for purposes of overtime includes “all remuneration for employment paid to, or on behalf of the employee” including nondiscretionary payments. Thus using the word “compensation” in Labor Code section 226.7 as opposed to “pay” in Labor Code section 510 does not necessarily mean the terms have different meanings.
The Supreme Court also rejected several federal district court opinions holding that the regular rate of compensation only means an employee’s hourly rate. The Supreme Court observed that such an interpretation would put an employee who received only a piece rate or both a piece rate and an hourly rate of pay as compensation at a disadvantage as the nondiscretionary payments would not be counted towards calculating their premium pay.
Based on its analysis and legislative history, the Supreme Court held the phrase “regular rate of compensation” in section 226.7(c) has the same meaning as “regular rate of pay” in section 510(a) and encompasses not only hourly wages but all nondiscretionary payments for work performed by the employee.”
As the final blow to employers, the Supreme Court rejected Loew’s request to apply the decision prospectively. Thus, the decision will be applied retrospectively.
Employer Takeaway:
Employers should closely examine their policies and practices with regard to meal and rest periods. Employers must demonstrate constant vigilance in complying with California’s rigid wage and hour laws, including proper calculation and payment of the one-hour premium when violations do occur.
As the decision is retroactive, employers who have paid premium pay should analyze their calculations to ensure that it includes nondiscretionary pay.
If you have any questions about how this decision may impact your obligations, or need assistance with regards to calculating premium pay, please feel free to contact Bradley & Gmelich LLP. We are here to help.
About the authors:
Saba Zafar, Esq. is Special Counsel in Bradley & Gmelich LLP’s Employment Law Department. Saba has over a decade of experience as an attorney, primarily in employment law. Saba focuses her practice of providing strategic advice and counsel in all aspects of employment law and workplace matters, including drafting and implementation of HR policies and procedures, Employment Handbooks, providing advice to clients on personnel issues as well as general business matters.
Prior to joining the firm, Saba was a Senior Counsel providing advice and counsel to mid-sized to large businesses on employment law compliance and day-to-day employment issues, including implementing policies and procedures, employee classifications, employment separations, managing and disciplining employees, and COVID-19 rules and regulations. Saba also handled a wide variety of employment matters in state and federal court, including cases involving wrongful termination, discrimination, and wage related cases.
In her spare time, Saba has volunteered as a Mediator for the Department of Consumer Affairs and the Orange County Human Resources Department. She was also a Volunteer Tutor for Schools on Wheels, tutoring elementary school students on skid row in Los Angeles. Prior to practicing law, Saba was a Judicial Extern for California Court of Appeal, Second Appellate District.
In her free time, Saba enjoys embarking on culinary adventures and catching up on new television shows. szafar@bglawyers.com
Jaimee K. Wellerstein, Esq. is a Partner at Bradley & Gmelich LLP, and the Head of the firm’s Employment Department. Jaimee concentrates her practice in representing employers in all aspects of employment law, including defense of wage and hour class actions, PAGA claims, discrimination, retaliation, harassment, wrongful discharge, misclassification, and other employment related lawsuits. She also provides employment counseling and training in all of these areas.
Jaimee routinely represents employers in federal and state courts and in arbitration proceedings throughout the state, as well as at administrative proceedings before the Equal Employment Opportunity Commission, the California Department of Labor Standards Enforcement, the United States Department of Labor, and other federal and state agencies.
Jaimee assists as a Legal Advisor to CALSAGA, and is a member of ASIS International. She is rated AV-Preeminent by Martindale-Hubbell, the highest peer rating available. jwellerstein@bglawyers.com.
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CALSAGA will continue to update you on matters that affect you and your business. We appreciate the hard work of you and your employees. Please let us know what we can do to assist you.
Stay in the know! Read the latest edition of The Californian: The Quarterly Newsletter of CALSAGA. You can also review all past editions of The Californian.
Make plans to attend this free webinar presented by CALSAGA Legal Advisors Barry Bradley, Esq. and Jaimee Wellerstein, Esq. of the firm of Bradley & Gmelich. They will present information that you need to make sure that your business is in compliance with state and federal law as well as answer your legal questions.
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Breaking News Regarding COVID-19
Today Governor Gavin Newsom announced that the California Department of Public Health has ended the regional Stay-at-Home order which was announced in December. The state will now revert to the Blueprint tier system. All but 4 counties in California are currently in the most restrictive purple tier.
Learn more about current restrictions.
Even with the Stay-at-Home order lifted, it is important that all of your officers carry their Guard Card at all times while on duty and while traveling to and from work. Please extend this reminder to your team.
CALSAGA will continue to update you on matters that effect you and your business. We appreciate the hard work of you and your employees. Please let us know what we can do to assist you.
Stay in the know! The next edition of The Californian: The Quarterly Newsletter of CALSAGA will be available on Monday, February 1st. You can also review all past editions of The Californian.