Last week, the California Supreme Court issued a decision in Ferra v. Loews Hollywood Hotel addressing what rate needs to be paid for meal and rest period premium payments.

The American Rescue Plan Act (“ARPA”) created a COBRA subsidy that requires employers to cover 100% of the employee’s cost of continuing group health coverage under insured and self-insured plans subject to COBRA for up to six months if an employee has lost coverage under their employer’s health care plan due to a reduction in hours or involuntary termination (for reasons other than gross misconduct) and elects COBRA continuation. The subsidy period is between April 1, 2021 and September 30, 2021 and does not lengthen the COBRA period. Who are already enrolled in COBRA; or who did not elect COBRA when it initially became available to them; or who elected COBRA initially but let the coverage lapse; who are not eligible for coverage under another employer’s group health plan or under Medicare.

On March 19, 2021, California Governor Gavin Newsom signed Senate Bill (SB) 95, which creates new Labor Code section 248.2 and mandates that employers provide employees with supplemental paid sick leave (SPSL) for various COVID-related absences in addition to paid time off benefits employees receive by law or policy, e.g., non-COVID statutory paid sick leave or vacation.

In Donohue v. AMN Service, LLC, the Supreme Court held that “employers cannot engage in the practice of rounding time punches — that is, adjusting the hours that an employee has actually worked to the nearest preset time increment — in the meal period context. The meal period provisions are designed to prevent even minor infringements on meal period requirements, and rounding is incompatible with that objective.” Donohue v. AMN Services, LLC, No. S253677 (Cal., Feb. 25, 2021) at *1.

Thank you for attending our recent webinar on the new California Supreme Court case, Donahue v. AMN Services. As we discussed, California employment law compliance takes on heightened significance in light of COVID-19-inspired lawsuits and the general trend of increased litigation. We want to make sure our clients are prepared and fully protected. Please review the options below and click on any option for which you would like more help or information.