Business and Employment Update
The California Division of Labor Standards Enforcement issued an opinion letter in which it found that an employer’s idea “to reduce the number of its employees’ scheduled work days from five days to four days per week with a corresponding reduction in salary” as a result of the difficult economic circumstances, with the understanding that the employer would move things back up once in a position to do so, was not precluded by California’s law “salary test” for exempt employees. DLSE Letter dated August 19, 2009 Re: Salary Basis Test – Word Schedule and Salary Reduction to Avoid Layoff.
Where an employee injures individuals while engaged in a “special errand” for the employer, the employer may be held liable. In a recent California Appellate Court matter, the court reversed a trial court’s decision to dismiss an action against an employer where one pedestrian had been killed and two other were injured by an executive traveling from a conference, determining that the executive was engaged in a special errand for the employer. (2009) Jeewarat v. Warner Bros. Entertainment, Inc. 177 Cal. App. 4th 427.
An employee who engages in activities off the work site, but which relate to the employee’s principal activities for the employer and for which the time spent is not de minimus, may be entitled to compensation. In a recent 9th Circuit Court of Appeals case, the court reversed a trial court’s decision to dismiss employees’ claims determining that that employees who transmitted data information for their employer after leaving the work site might be entitled to compensation. (9th Cir. 2009) Rutti v. Lojack Corp., 578 F.3d 1084.
This information is for general purposes only and is not intended as legal advice. Any liability that might arise from your use or reliance on this information is expressly disclaimed. The reader is cautioned to seek the guidance of an experienced attorney when making any decision which might have legal implications.