Articles Posted in Labor & Employment

Published on:

01 April 2020
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Note: If you are an individual consumer with coronavirus-related travel issues, please do NOT contact us! We do not represent individual consumers. We advise businesses on major contracts, investments and financing. 

Following the enactment of the Families First Coronavirus Response Act on March 18, 2020, the Department of Labor has clarified which employers will be impacted by the Act and how they can comply with its mandates. Marta Fernandez, hotel lawyer and a partner in JMBM’s Labor & Employment department, has answered some of the most frequently asked questions by employers about the Act which goes into effect on April 1, 2020.

What hotel owners and operators need to know
about employee rights under the FFCRA

by
Marta Fernandez

Frequently Asked Questions or FAQs about employee rights under the Families First Coronavirus Response Act

Effective April 1, 2020 and continuing through December 31, 2020, covered employers need to begin complying with the mandates of the Families First Coronavirus Response Act (“FFCRA” or “Act”). You can find our original article explaining the FFCRA here. Since the law’s enactment on March 18, 2020, the Department of Labor has clarified and expanded upon what precisely is required under the Act and of whom it is required. Below are some of the questions we have been receiving from clients. The answers provided reiterate some of the previously announced requirements, and incorporate the additional guidance that has been issued by the Department.

#1 What obligations do covered employers have under the FFCRA?

Covered employers must provide eligible employees with up to 80 hours of emergency paid sick leave and up to 12 weeks of emergency family and medical leave.

#2 When is an employee eligible to receive paid sick leave under the FFCRA?

Under the FFCRA, a full-time employee may qualify for 80 hours of paid sick leave (or, for a part-time employee – the average number of hours that the employee works over a typical two-week period) where the employee is unable to work, or telework, due to a need for leave because the employee:

  1. Is subject to a federal, state, or local quarantine or isolation order related to COVID-19;
  2. Has been advised by a health care provider to self-quarantine due to concerns related to COVID-19;
  3. Is experiencing COVID-19 symptoms and is seeking a medical diagnosis;
  4. Is caring for an individual subject to an order described in (1) or self-quarantine as described in (2);
  5. Is caring for a child whose school or place of care is closed (or child care provider is unavailable) for reasons related to COVID-19; or
  6. Is experiencing any other substantially-similar condition specified by the Secretary of Health and Human Services, in consultation with the Secretaries of Labor and Treasury.

#3 How much compensation is an employee entitled to receive under the paid sick leave provisions of the FFCRA?

Employees taking leave for reasons 1, 2, or 3, noted above must be paid at either their regular rate or the applicable minimum wage, whichever is higher, with a cap of $511 per day and $5,110 in the aggregate.

Employees taking leave for reasons 4, 5, or 6 above must be paid at two-thirds their regular rate or two-thirds the applicable minimum wage, whichever is higher, with a cap of $200 per day and $2,000 in the aggregate.

The Department has now clarified that an employee’s regular rate of pay is the average of the employee’s regular rate over a period of six months prior to the date on which he or she takes leave.

#4 Can I require employees to substitute any accrued paid time off for the emergency paid sick leave?

No. While employees may elect to substitute any accrued vacation leave, personal leave, or medical or sick leave for the emergency paid sick leave, you cannot require employees to do so.

#5 What if I’ve already provided my employees with paid leave for a COVID-19 related reason?

The emergency paid sick leave is to be provided in addition to any other paid leave that an employer has already provided to its employees. Thus, leave taken prior to April 1st does not count towards the leave required under the Act.

CONTINUE READING →

Published on:

19 March 2020
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With hour-by-hour developments, here is an update on yesterday’s Labor & Employment blog post.

Labor Lawyer COVID-19 Update: Family First Act
signed by 
President Trump 

(Family First Coronavirus Response Act)
by
Marta Fernandez

As we expected, the federal government will provide additional sick leave relief and paid child care leave for employees; in anticipation of things to come, California will ease employers’ mass layoff notice requirements.

Families First Coronavirus Response Act

Yesterday, March 18, President Trump signed the Families First Coronavirus Response Act, the legislature’s response to the COVID-19 health crisis. Private employers with fewer than 500 employees and all government employers must be ready to offer emergency family and medical leave and emergency paid sick leave to eligible employees. Additional information and further clarification on these sweeping provisions will likely be provided in the coming days through federal guidance. This program will become effective within 15 days after its enactment by President Trump and is set to expire on December 31, 2020.

Emergency Paid Sick Leave

The paid sick leave portion of the Act requires covered employers to provide all employees who cannot work or telework due to COVID-19 related circumstances, with up to 80 hours of paid sick time, prorated for part-time employees. Employees are eligible if they meet any one of the following circumstances:

    1. The employee is subject to a Federal, State, or local quarantine or isolation order related to COVID-19.
    2. The employee has been advised by a health care provider to self-quarantine due to concerns related to COVID-19.
    3. The employee is experiencing symptoms of COVID-19 and seeking a medical diagnosis.
    4. The employee is caring for an individual who is subject to an order as described in subparagraph (1) or has been advised as described in paragraph (2).
    5. The employee is caring for a son or daughter if the school or place of care of the son or daughter has been closed, or the child care provider of the son or daughter is unavailable, due to COVID-19 precautions.
    6. The employee is experiencing any other substantially similar condition specified by the Secretary of Health and Human Services in consultation with the Secretary of the Treasury and the Secretary of Labor.

If an employee is taking the leave for any one of the first three reasons listed above, the employee must be compensated at the higher of his or her regular rate, the federal minimum wage, or the local minimum wage. If an employee is taking the leave for one of the three subsequent reasons listed above, the employee must be paid two-thirds of the rate he or she would otherwise receive. This paid leave is separate and above any existing sick leave entitlements that employees may already have. CONTINUE READING →

Published on:

19 March 2020

See how JMBM’s Global Hospitality Group® can help you.
Click here for the latest articles on Labor & Employment.

Earlier this month, JMBM Partner Travis Gemoets was featured in a segment on Southern California National Public Radio affiliate KPCC’s Airtalk with Larry Mantle. The segment explored recent lawsuits filed against major hotel chains regarding their responsibility to detect and report human trafficking happening in their properties.

Travis discussed how training employees to recognize the signs of human trafficking, as well as how to report their concerns, can be an effective tool in helping hotels confront this issue as well as minimize their legal liability. You can listen to the full segment online through the KPCC website.

In California, hotel owners are required to provide at least 20 minutes of training and education about human trafficking to employees who are likely to encounter victims. More information about this requirement can be found in our Legislative Update. JMBM’s labor and employment lawyers have represented the hospitality industry for decades and can provide effective training for employees, as well as develop policies and procedures that protect employers who are implementing programs in human trafficking awareness. CONTINUE READING →

Published on:

18 March 2020
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As the Coronavirus Pandemic continues to impact California businesses, many employers are wondering how best to ensure the wellbeing of their staff. Marta Fernandez, hotel lawyer and partner in JMBM’s Labor & Employment department, discusses some of the key issues raised by employers and provides recommendations for complying with new mandates.

COVID-19: Immediate Advice For California Employers
Top 7 Frequently Asked Questions
by
Marta Fernandez

Most California employers are taking steps to keep employees safe during the Coronavirus Pandemic. These changes to workplace routines, policies and norms are the result of a mix of proactive steps, changes in demand, and government mandates. As labor and employment lawyers, our phones have been ringing off the hook. Here are the Top 7 most frequently asked questions by employers trying to ensure the health and safety of their workforce.

CONTINUE READING →

Published on:

07 January 2020

See how JMBM’s Global Hospitality Group® can help you.

Click here for the latest articles on Labor & Employment.

California hotel owners and independent operators must provide
human trafficking awareness training

California SB 970 went into effect January 1, 2020, requiring California hotel and motel employers to provide at least 20 minutes of prescribed training and education regarding human trafficking awareness to employees who are likely to interact or come into contact with victims of human trafficking.

JMBM’s labor and employment lawyers have represented the hospitality industry for decades and can provide effective training for employees, as well as develop policies and procedures that protect employers who are implementing programs in human trafficking awareness.

Marta Fernandez, a partner in JMBM’s Labor and Employment department and a senior member of JMBM’s Global Hospitality Group®, alerted hotel owners and independent operators of the new law shortly after it was signed by the governor in 2018.

CONTINUE READING →

Published on:

30 December 2019

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Hotel Lawyer with labor & employment law update for 2020

Several new pieces of California legislation will take effect on the first day of the new year, impacting nearly all employers and how they handle worker classification, discrimination disputes, arbitration agreements, and union organizing. Our round-up will help you determine which key issues may impact you in 2020; contact us to be sure you’re ready for all these upcoming changes.

Use of Independent Contractors Severely Limited as of New Year

On September 18, 2019, California Governor Gavin Newsom signed AB 5 into law, codifying the holding in Dynamex Operations West, Inc. v. Superior Court which severely curtailed when employers may use independent contractors. AB 5 is effective January 1, 2020 and sets forth an “ABC” tests to determine whether workers qualify as independent contractors.

The test examines whether:

  1. The worker is free from the control and direction of the hiring entity in connection with the performance of the work, both under the contract for the performance of the work and in fact
  2. The worker performs work that is outside the usual course of the hiring entity’s business
  3. The worker is customarily engaged in an independently established trade, occupation, or business of the same nature as the work performed

The “B” prong is new, and may be particularly problematic for businesses – potentially resulting in misclassification of individuals who were formerly properly classified as independent contractors.

AB 5 codifies a number of exceptions from the ABC test, including but not limited to:

  1. A person or organization licensed by the Department of Insurance;
  2. California licensed physician, surgeon, dentist, podiatrist, psychologist, or veterinarian;
  3. California licensed lawyer, architect, engineer, private investigator, or accountant;
  4. Securities broker-dealer or investment adviser or their agents and representatives registered with the SEC or FINRA or licensed by California;
  5. Direct sales salespeople;
  6. Commercial fishermen.

Workers in these categories are subject to the “Economic Realities” test set forth in Borello & Sons, Inc. v. Dept. of Industrial Relations. In applying the economic realities test, the most significant factor to be considered is whether the person to whom service is rendered (the employer or principal) has control, or the right to control, the worker both as to the work done and the manner and means in which it is performed.

AB 5 also provides for limited exemptions to the ABC test for certain professional services, business-to-business contracts, construction subcontracts, relationships between referral agencies and service providers, and contracts between motor clubs and third parties. When these categories of relationships qualify, they are subject to Borello’s economic realities test.

What this means for you: All businesses using independent contractors should conduct audits and review written independent contracts under the new standards to ensure that workers are properly classified. Misclassification can result in significant penalties, wage and hour liability, EDD and other tax liabilities as well as trigger class action lawsuits.

CONTINUE READING →

Published on:

17 October 2019
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As of January 1, 2020, California employers will need to comply with a new law which codifies a heightened standard of classifying an individual as an independent contractor. The new law can have significant implications for hospitality industry employers. Marta Fernandez, hotel lawyer and a partner in JMBM’s Labor & Employment department, discusses the new law and what employers can expect.

California limits use of independent contractors,
creating significant liabilities and penalties for California employers

by Marta Fernandez

On September 2019, California Governor Gavin Newsom signed Assembly Bill No. 5 (AB 5) into law, regarding the classification of workers as employees or independent contractors. The new law will have far-reaching effects with respect to employee classification, tax ramifications, and corporate structuring in California.

AB 5 will become effective on January 1, 2020.

On the most basic level, the law codifies the heightened standard of classifying an individual as an independent contractor and will affect employer costs with respect to Social Security and Medicare taxes, unemployment and disability insurance, workers’ compensation costs and coverage, sick leave, minimum wage, overtime, and rest breaks and meal periods.

The new law codifies the “ABC” test for determining independent contractor status, which was adopted as the default classification test by the California Supreme Court in its 2018 decision in Dynamex Operations West, Inc. v. Superior Court. CONTINUE READING →

Published on:

21 February 2019

Voters in Long Beach, California passed an initiative in November 2018 that affects all hotels in Long Beach with more than 50 hotel rooms. The Hotel Workplace Requirements and Restrictions Initiative Ordinance, known as the “Panic Button Initiative” places new requirements and restrictions on hotel owners and puts non-union hotels at a disadvantage.

Marta Fernandez, Hotel Lawyer and a partner in JMBM’s Labor & Employment department, discusses “Panic Buttons” and the new ordinance below and describes what Long Beach hotels should do to prepare for compliance and potential union organizing.

What hotel owners need to know about unions and
the “Panic Button” ordinance in Long Beach, CA
by
Marta M. Fernandez, Hotel Lawyer and Labor & Employment Partner

Passed by voters last November, the “Panic Button Initiative” – which was placed on the local ballot after the hotel workers union submitted 46,000 signatures to the City Clerk in Long Beach, California – has become a new chapter in the City of Long Beach Municipal Code, titled “Hotel Working Conditions.”

The new code mandates that all hotels with 50+ rooms in Long Beach, California must

  • Provide panic buttons for workers to protect them against sexual assault
  • Require notices regarding the use of panic buttons to be posted in guest rooms
  • Give workers who are assaulted the right to reassignment and paid time off for reporting and consultation

Unrelated to potential assaults on hotel housekeepers, the ordinance also requires hotels to

  • Place limits on overtime and make overtime voluntary
  • Limit the amount of space that housekeepers can clean per shift
  • Keep certain records relating to the above

Why the hotel union spent resources on an initiative that does not apply to union hotels

The Panic Button Initiative (also known as Measure WW) tellingly included a significant carve-out for unionized hotels – all provisions of the new ordinance may be waived for union hotels through the collective bargaining process.

Under the guise of protecting workers, the ordinance gives an unfair advantage to union hotels in Long Beach. CONTINUE READING →

Published on:

15 February 2019

$87 billion in hotel transactions involving more than 3,900 properties

LOS ANGELES—The hotel lawyers of JMBM’s Global Hospitality Group® are pleased to present their updated Hospitality Credentials, which include clients and projects that represent more than $87 billion in hotel transaction experience involving more than 3,900 properties worldwide – more than any other law firm.

“If you are a hotel owner, developer, or capital provider, our hospitality lawyers can provide expertise and experience you just won’t find elsewhere,” said Jim Butler, Chairman of JMBM’s Global Hospitality Group. “Whether you are buying or selling a hotel, developing a new one, need a privacy and cybersecurity plan, or defend an ADA lawsuit – we have lawyers who know the ropes, and can guide you every step of the way.”

JMBM’s Global Hospitality Group provides a full range of services to the hospitality industry including:

  • ADA compliance & defense
  • Cannabis
  • Celebrity chef agreements
  • Construction
  • Corporate governance
  • Cybersecurity
  • Data privacy
  • Development
  • Equity & joint ventures
  • Expert witness
  • Fiduciary duty
  • Financing
  • Foreign investment
  • Franchise & licensing
  • Hotel-specific contracts
  • Labor & employment
  • Land use & environmental
  • Leasing
  • Litigation
  • Management agreements
  • Mergers & Acquisitions
  • Opportunity Zone
  • Proposition 65
  • Purchase & sale
  • Shareholder disputes
  • Tax
  • Trademark & copyright
  • Trusts and estates
  • Union negotiations
  • Union prevention
  • Vacation ownership
  • Workouts, bankruptcies & receiverships
“Exceeding $87 billion in hotel transactions involving 3,900 properties is a new milestone, and one I am proud to announce,” said Butler. “I am grateful to all of our wonderful hospitality clients who have shown us their trust and confidence over the years and continue to provide us with challenging and meaningful work.”

About JMBM’s Global Hospitality Group
JMBM’s Global Hospitality Group is the premier hospitality practice in a full-service law firm and the most experienced legal and advisory team in the industry. The Group publishes the Hotel Law Blog and hosts the annual Meet the Money® National Hotel Finance & Investment Conference (May 6-9, 2019 in Los Angeles). For more information visit www.HotelLawyer.com.

Contact:

Jim Butler
jbutler@jmbm.com
+1 310-201-3526

Published on:

11 October 2018

Starting in January 2020, California hotels and motels must provide human trafficking awareness training to their employees, to ensure that those most likely to come into contact with victims of trafficking are able to help in a way that is effective and safe for both guests and employees.

Marta Fernandez, a partner in JMBM’s Labor & Employment department, outlines the new law below and discusses what hotels should do to prepare for compliance.

Legislative Update: California hotels soon will be required to provide human trafficking awareness training to employees
by
Marta Fernandez

On September 27, 2018, California Governor Jerry Brown signed SB 970 requiring California hotel and motel employers to provide “human trafficking awareness” training and education to employees.

Effective January 1, 2020, hotel and motel employers must provide at least 20 minutes of training to certain employees every 2 years; newly hired employees must receive training within 6 months of their hire dates.

Employees required to receive the training are those who are likely to interact or come into contact with victims of human trafficking including, but not limited to: employees who work in the reception area, perform housekeeping duties, help customers in moving their possessions, or drive customers.

Why the hospitality industry is singled out

While we might read reports of sex trafficking at hotels during events like the Super Bowl, the sad reality is that human trafficking takes place at hotels and motels year round. It takes place in all segments of hotels – economy to luxury – and in all geographic areas. CONTINUE READING →