The U.S. Department of Labor has established certain employment and labor standards for the country as a whole. However, individual states can go above and beyond the Federal labor standards for workers. California labor laws differ from the Federal standards and provide workers with expanded employment rights in the following areas: minimum wage, overtime pay, and vacation pay.
California Minimum Pay
The minimum wage in California is higher than the minimum set by the Fair Labor Standards Act (FLSA). The U.S. Government requires that employers pay non-exempt employees $7.25 an hour, but CA minimum wage is $8.00 an hour. No covered employee may receive below that amount per hour, even if it is at the Federal minimum.
Additionally, there are these distinct differences between California labor law and Federal labor laws:
* There is no distinction between adults and minors concerning minimum wage
* Employers may not count employees’ tips toward their obligation to provide minimum wage
Employees who have not been paid according to their state’s minimum wage are often entitled to back wages. A California wage and hour attorney can help them review their claims and guide them through the process.
No agreement can be made between a California employee and his or her employer for that employee to work for less than the minimum wage. California wage and hour law details exemptions to the minimum wage for certain types of workers.
Overtime Pay in California
California’s overtime laws are more extensive than the Federal standard. Non-exempt employees are due overtime in the following cases:
* Working over 40 hours in one (7-day, 168-hour) workweek
* Working over eight hours in one workday
Non-exempt employees cannot waive their right to overtime pay, nor can employers average more than one workweek or day together to avoid paying for overtime. According to California overtime law, Each unit of time stands on its own, and is eligible for overtime regardless of hours worked during other days or weeks.
Unpaid overtime from the past can be recovered if employees take legal action. By law, employers are to keep records of hours worked and rates of pay for their employees, even after employment has been terminated. However, this only lasts a few years, so it is important that California workers who have been denied overtime pay seek to recover this compensation sooner than later.
Vacation Pay in California
Under California labor laws, no employer is required to provide vacation time to its employees. However, if the employer and employee have agreed upon vacation time at the beginning of employment, the employer is legally obligated to abide by the agreement. Furthermore, in California,any vacation time accrued over the course of employment must be carried over into the next year or paid at the employee’s regular “straight” rate of pay. This includes situations of resignation or termination from employment.
Vacation time in California is considered earned wages, meaning that it is accrued throughout the course of employment. If an employee is promised 10 vacation days in his or her first year of employment, for instance, each month of work earns him or her .83 days of vacation, all of which is compensable at any time of termination or resignation. The exception to this rule is in the case of an introductory employment period, which an employer may impose with the prior consent of the employee. In such a case, the employee may have to wait a predetermined period before becoming eligible for benefits and, therefore, compensation for said benefits.
IQOvertime.com has more information on California labor laws, and can connect you with a California overtime attorney to help you if you are owed back wages for unpaid minimum wage, overtime, or vacation time.
New California Law – First Mortgage Exempt From Deficiency Judgment After Short Sale
A new California law is now in effect to benefit homeowners experiencing financial distress. Some call it the Short Sale Anti-Deficiency Law. The law prevents first mortgage lenders from suing individuals for any deficiency after the first mortgage lender accepts a short sale.
It is found in California Code of Civil Procedure 580e. Google “California Code of Civil Procedure 580e” to read it. This law applies only to 1 to 4 unit dwellings. This law will NOT affect the ability of second mortgage holders to file deficiency judgments. In other words, second mortgage holders can still sue to collect.
This new law does not necessarily signify that having a short sale accepted by the lender and consummated by borrower is better for the borrower than a foreclosure… Why not? Here is a clue… it depends on what other debts exist.
Does this law make a difference for individuals considering filing bankruptcy? Here is a clue… part of the analysis depends on whether the borrower has a second mortgage. Based on reviewing the law, does it apply to investment property? From my reading it does, but only if the investment property is 1 to 4 units. What do you think?
How long do you think the law will stay on the books? Some commentators believe that banks will lobby the California legislature quickly to have this law repealed. In the meantime, if you have one mortgage on an upside down home, now may be the perfect to short sell the home without deficiency issues.
This is what you should take away from this new law. It expands the Anti-Deficiency Law in California Code of Civil Procedure 580b from foreclosures arising from purchase money loans to short sales arising from purchase money and/or refinance money, so long as it involves a first deed of trust.