California Minimum Wage Hike: Is it Set in Stone?

California Minimum WageCalifornia minimum wage changes. By the year 2022, some California employers will be required to pay their workers a minimum wage of $15 per hour. Governor Jerry Brown announced on March 28, 2016 that he had reached a deal with the state legislature that will gradually increase the state’s minimum wage.

California Minimum Wage – The Specifics

Pursuant to the deal, California’s minimum wage will rise from its current rate of $10 per hour to $10.50 per hour on January 1, 2017, but only for companies with 26 or more employees. It will then climb to $11 per hour for the year of 2018, then to $12 per hour for 2019, then to $13 per hour for 2020, $14 per hour for 2021, and $15 per hour for 2022.

The minimum wage will remain at $10 per hour for companies with 25 or fewer employees until January 1, 2018. The minimum wage for those companies will climb to $11 per hour for the year of 2019, then to $12 per hour for 2020, $13 per hour for 2021, $14 per hour for 2022, and $15 per hour for 2023.

Is This California Minimum Wage Schedule Certain?

The increases are not guaranteed to take place at these times. As part of the deal, there will be two ways that the increases can be delayed.

The first way is related to the economy. At any point, the governor can “pause” an increase if the state’s economy is bad enough. This can occur if seasonally adjusted statewide job growth has been negative over the past three months, or over the past six months – and if retail sales receipts for the prior 12 months have been negative.

The second way is related to the state’s budget. The governor will be able to pause the increase if at any point in time, the current budget year, or the year after that, or the year after that, is forecasted to be in deficit when the next scheduled increase is taken into account. This is referred to as a “budget off-ramp,” and there is a specification that it may only be used twice.

The deal will also introduce sick leave for in-home supportive services workers. In July 2018, in-home supportive services workers will be guaranteed one sick day. A second sick day will be added in the first July following the implementation of a $13 per hour minimum wage for businesses with 26 or more employees. A third sick day will be added after the minimum wage rises to $15 per hour. [Read more…]

Disability Discrimination Clarified By CA Appeals Court

Disability DiscriminationWallace v. County of Stanislaus: A California appeals court clarifies what counts as disability discrimination. Dennis Wallace filed a complaint against Stanislaus County, California after he was fired from his job with the sheriff’s department after suffering a knee injury. He alleged that he was fired due to a disability, even though he could have performed his job with proper accommodations – and thus the county violated the California Fair Employment and Housing Act (FEHA).

At trial, the jury found that the county treated Wallace as a person with a disability, and that Wallace was capable of performing his job with or without the proper accommodations. But despite these findings, the jury sided with the county, and Wallace’s complaint of disability discrimination was dismissed.

Why? Because the judge had instructed the jury that Wallace had a burden to demonstrate that the county regarded or treated him “as having a disability in order to discriminate.” In other words, the jury was told that Wallace needed to show that the county was motivated by ill will toward Wallace and used disability as an excuse to fire him. The jury found that this burden had not been met, and so the disability discrimination claim was resolved in favor of the county.

Wallace appealed, arguing that the jury instructions were incorrect, and that FEHA prohibits disability discrimination even when an employer has no animus against the employee. The Court of Appeal for the Fifth Appellate District of California agreed and remanded the case to the trial court for further proceedings.

The Court’s Reasoning

The Supreme Court set a well-known standard for employment discrimination cases in McDonnell Douglas Corp. v. Green. Under McDonnell Douglas, there is a three stage test for complaints.

  • First, the burden is on the plaintiff to make a prima facie showing that employment discrimination took place.
  • If the plaintiff meets this burden, then the burden shifts to the employer, who must provide a legitimate reason for taking the negative employment action in question (such as a firing),
  • If the employer meets this burden, then the burden shifts back to the plaintiff, who can prove that discrimination took place by providing evidence that the employer had a discriminatory motive. This often involves demonstrating that the reason given by the employer was just a pretext for discrimination.

In Wallace, the appeals court clarified that the McDonnell Douglas test is only to be used if the plaintiff has no direct evidence of discrimination. In Wallace, there was direct evidence of discrimination, being as the employer acknowledged that Wallace’s disability was the reason he was fired.

The court held that when there is direct evidence of discrimination based on disability, the focus should not be on the employer’s motivations. Rather, the focus should be on whether the employee was able to perform essential job functions, whether a reasonable accommodation would allow the employee to perform these functions, and whether the accommodation would impose too much of a hardship on the employer. Thus, the court held that the instruction given to the jury was in error. [Read more…]

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