Alaska employers should be aware that the state adjusts its minimum salary threshold for overtime exemption based on the minimum wage. Accordingly, the salary threshold will increase from $1,040 to $1,120 per week on July 1, 2026.

One more change comes later in the year: Florida’s minimum wage will increase from $14.00 to $15.00 on September 30, 2026.

Many Changes Coming in California

As it often does, California leads the way with a patchwork of minimum wage increases across localities and industries scheduled for this summer.

Los Angeles Prepares for the Olympics with Proposed Wage Increases

Employers, workers, and advocates have been closely following headlines regarding Los Angeles’s so-called “Olympic Wage” initiative. The legislation in question, Ordinance 188610, requires higher minimum wages, minimum health benefits, and training standards for employees of large hotels and employers servicing the Los Angeles International Airport (“LAX”). This is not the first time these industries have been singled out; however, this proposal specifically contemplates the upcoming 2026 World Cup and 2028 Olympics.

Case Background

Plaintiffs, former veterinary assistants and technicians, filed a putative class action in July 2014 against their former employer, Vicar Operating.  Plaintiffs alleged in part that Vicar Operating had violated Labor Code section 512(a) by requiring Plaintiffs and putative class members to work shifts between five and six hours without a meal period and without waiving their right to a meal period by mutual consent.  Plaintiffs argued that as a result, Vicar owed Plaintiffs and the putative class members premiums for missed meal periods.

Required Contents—the Basics

We previously covered what California employers need to include on wage statements pursuant to Labor Code section 226(a):

1. Gross wages earned;
2. Total hours worked;
3. Certain information for employees paid on a piece-rate basis;
4. All deductions;
5. Net wages earned;
6. Pay period;
7. Employee’s name and either (a) the last four digits of the social security number or (b) employee identification number;
8. Name and address of the legal entity that is the employer; and
9. All applicable hourly rates.

If you know what I’m referring to, you don’t need to read any further.  But if you don’t, well, please read on.

A great many employment lawsuits include claims against alleged “joint employers” – for instance, a temporary staffing company and the client to which the employee was assigned, or related corporate entities that share similar names (and, perhaps, shared services, which is another issue).

And in many of those lawsuits, plaintiffs and their counsel have simply lumped the two companies together and have alleged that “defendants” engaged in unlawful conduct, without making any effort to distinguish between the two defendants, much less their alleged conduct.

In an attempt to avoid arbitrating the named plaintiffs’ individual PAGA claims – and knowing that the representative, non-individual claims would be dismissed if the employers prevailed in an individual arbitration – more than a few plaintiff’s counsel have tried to circumvent Adolph by asserting that their clients were not bringing individual claims at all, but were only bringing claims on behalf of others. 

In response, employers have argued that, based on the clear statutory language, every PAGA action necessarily includes an individual PAGA action such that those individual claims have to be arbitrated first.

California wage-hour law is governed in large part by 18 different wage orders that apply to different industries and occupations.  “The number of wage orders, and their internal variations, reflects the reality that differing aspects of work in differing industries may call for different kinds of regulation,” as the California Supreme Court explained in Mendiola v. CPS Security Solutions, Inc.  Indeed, as the Court explained in Brinker, “[w]hat will suffice [for meal and rest breaks] may vary from industry to industry.”

With that in mind, this tip is not a one-size-fits-all guide but instead discusses California’s meal and rest period requirements generally.

In November,  by a slim margin of 50.7% to 49.3%, voters surprised many by rejecting Proposition 32, which would have increased minimum wages for most non-exempt employees in the state.

Under Proposition 32, the hourly minimum wage for non-exempt employees working for employers with 26 or more employees would have immediately increased from $16 to $17 for the remainder of 2024, with an additional increase to $18 per hour on January 1, 2025. Those working for employers with 25 or fewer employees would have seen an increase the hourly minimum wage from $16 to $17 on January 1, 2025.

The rejection of Proposition 32 in a state that has historically supported minimum wage increases could signal a shift in the labor landscape. It may reflect concerns about rising costs and fears that families and businesses are being priced out of the Golden State. And the vote could be a bellwether for the nation as California is well known as a trendsetting state, especially on wage-and-hour issues.

Alaska

In Alaska, voters passed by a narrow margin Ballot Measure 1, which will increase the state’s minimum wage from the current rate of $11.73 per hour to $13.00 per hour on July 1, 2025. It will subsequently rise to $14.00 per hour on July 1, 2026, and $15.00 per hour on July 1, 2027. Increases thereafter will be calculated based on inflation.

Ballot Measure 1 included other provisions affecting workplaces. Its passage means that many employers will need to comply with new paid sick leave requirements. Starting July 1, 2025, eligible employees will accrue a minimum of one hour of paid sick leave for every 30 hours worked and will be allowed to use at least 40 and up to 56 hours of accrued paid sick leave annually, depending on how many employees work for their employer.

A third portion of Ballot Measure 1, also effective July 1, 2025, prohibits so-called “captive audience” meetings. The new law will prohibit employers from retaliating against employees who refuse to attend company meetings about political or religious topics.

The Court’s conclusion resolves an issue that is not uncommon in PAGA litigation where a resolution is reached in one of several separate PAGA lawsuits filed against the same employer. And it will make it easier for parties to resolve PAGA actions without fear that settlements will be toppled by other employees or their lawyers. 

In 2019, California Assembly Bill 5, also known as AB5, expanded the landmark California Supreme Court decision in Dynamex Operations West, Inc. v. Superior Court, and made the "ABC" test law. 

If passed by California voters, the FPEAA would have repealed PAGA and replaced it with a new statute and a new process that were more employer-friendly -- and more employee friendly. 

(The idea of a ballot initiative to repeal or create laws may sound very unusual to anyone outside of California.  But California permits this kind of mob rule, for better or worse, so long as enough signatures are gathered and verified to qualify to be placed on the ballot.)

For all of the celebration about how these PAGA amendments will benefit employers, the PAGA amendments remind me of nothing so much as New Coke. 

You don’t know about New Coke, do you? 

You see, back in 1985, Coca-Cola announced that it was changing the longtime formula for its soda and replacing it with a new formula that everyone would love even more. There was much excitement about it.  (Keep in mind that this was before the internet, smartphones, texting, streaming, etc.)  The launch of the new version of the soda was covered in the mainstream media, and people just couldn’t wait. They actually lined up outside stores to be the first to get their hands on it.

And then New Coke was launched.

The plaintiffs signed various arbitration agreements throughout their employment. From the fall of 2018 to May 2022, Tesla utilized a recruiting software called Averture. According to Tesla, Averture required applicants to create a secure online profile with their own personal information. Eight of the plaintiffs signed offer letters with Tesla through Averture containing an arbitration provision. These plaintiffs did not dispute that they signed, and Tesla countersigned, the offer letters.

At some point in 2022, Tesla stopped using Averture and started using a system called Inside Tesla. The security measures applicable to Averture were largely the same as those employed by Inside Tesla; however, applicants who were offered employment under Inside Tesla signed an offer letter and a standalone arbitration agreement. Four of the plaintiffs signed arbitration agreements through the Inside Tesla system.

Most of these jurisdictions will have straightforward rate adjustments, with a uniform increase across all industries. However, a somewhat more complicated and significant development comes out of California, which has raised minimum wage mandates for just one sector.

While some have read the decision as a resounding victory for the plaintiffs’ bar that will force every PAGA case to settle for large amounts, the decision does no such thing.

It may challenge employers and their lawyers to be more creative, but it does not mean that every PAGA action now warrants an outsized ...

Why offer holiday pay?

Many employers voluntarily elect to offer holiday benefits. Some common reasons for doing so are:

• Boosting employee morale;
• Increasing company loyalty;
• Making an employment offer ...

Perhaps you are familiar with him.  (And if you are, you probably thought that you stumbled upon the wrong blog just now.)

Remarkably, Mr. Foxworthy’s name comes up frequently when talking about whether workers have been properly classified as independent contractors.  Not because there is anything funny about that issue; there isn’t.  And not because Mr. Foxworthy was misclassified as an independent contractor.  Instead, his name pops up because Mr. Foxworthy has ...