SAN FRANCISCO EMPLOYMENT LAW BLOG

In 2020, California voters chose to pass Proposition 24, the California Privacy Rights Act (CPRA). As of January 1^st, 2023, it has officially gone into effect. This bill is an expansion of the California Consumer Privacy Act (CCPA) intended to provide consumers and workers with greater privacy rights. 

Before 2023, employers had relatively few obligations toward their employees’ data privacy. Employees did not have the right to request what data has been collected by their employer or prevent it from being used or sold. However, with the CPRA going into effect, employers must now treat all human resources information and similar data shared with or from other businesses with the same care as consumer data. 

This is excellent news for workers. Covered businesses now need to take extra precautions regarding your personal information and protect you from risks like data breaches and identity theft. Here’s what you should know about the CPRA’s impact on your rights to data privacy and what you can do if your employer violates them.  

New Privacy Rights Guaranteed for Employees

The CPRA grants employees, job applicants, and contractors the same rights given to consumers under the CCPA. These six rights are:

• The right to know what information your employer has collected about you and how it is used or shared
• The right to opt out of having your information sold or shared with other parties
• The right to limit the use or disclosure of your sensitive personal information to necessary business tasks
• The right to request that data not directly related to your employment is deleted
• The right to correct collected data that is inaccurate
• The right not to face discrimination or retaliation for exercising any of the above rights

In short, your employer must tell you what information it collects about you, why it’s needed, and who has access. In addition, you can block your employer from collecting or sharing most information and request that it be corrected or deleted entirely.

Privacy Requirements for Employers

Applying the CCPA to employers was controversial because of the new requirements it imposes on them. That’s why the initial CCPA specifically stated that employees were temporarily exempt from the rights guaranteed to the average consumer. This exemption was intended to allow employers to prepare for the demands of the CCPA.

However, now all covered organizations must follow the law’s requirements. An employer must follow these restrictions if it:

• Achieves $25 million in gross revenue annually
• Makes 50% or more of its income from selling or sharing consumers’ personal information
• Buys, sells, or shares the personal information of 100,000 or more consumers, households, or devices

All employers subject to the CCPA and CPRA must ensure they can honor the rights listed above. This includes setting up processes to track, correct, and delete employee information and prevent it from being collected upon request. In addition, employers must be able to provide information about the following:

• What employee information they collect
• What types of sources they gather information from
• The commercial purpose for gathering this information
• The types of third parties with whom each kind of data is shared

This allows workers to understand how their data is used and make informed choices about whether to opt-out, request deletions, or limit its use.

Benefits of the CPRA

The primary benefits of the CPRA are obvious: you regain control over your personal information. If you work for a covered employer, you have the right to minimize the data it collects and keep your private life separate from work. 

Furthermore, the bill increases transparency by requiring organizations to track and report how employee data is used and stored. Employers can no longer use their workers’ information for financial gain or potential discrimination without their knowledge.

This is partly why the rights enshrined in the CPRA are closely modeled after the European Union (EU) General Data Protect Regulation of 2016 (GDPR). Countries subject to the GDPR have discovered that many employers will collect employee information irrelevant to their employment and use it in discriminatory ways. 

For example, in 2020, the clothing retailer H&M was found to be keeping records about employee relationships, religious affiliations, and health, and using this information to make employment decisions. This is just as illegal in the EU as in the US. H&M faced a $37.7 million fine and compensated employees for the violation. 

If this type of blatant privacy violation and discrimination happens in the EU, it is not unlikely that it is also happening in the US. The CPRA may not only help protect your control over your data, but it could also protect you from discrimination.

What to Do If Your Employer Violates Your Data Privacy Rights

You have the right to data privacy under the CPRA. If your employer violates your rights, you may be able to take action. 

In most cases, the California Attorney General is responsible for identifying whether an organization violates the CCPA and CPRA and suing non-compliant businesses. However, in certain circumstances, you can act directly. If your unencrypted personal data is stolen from your employer, you can file a lawsuit in pursuit of compensation for the losses you suffer. Furthermore, if you discover your employer is using your data in discriminatory ways, you can also file workplace discrimination claims.

This is where Le Clerc & Le Clerc LLP is proud to help. We are dedicated to protecting the rights of workers in California. We are available to help you take a stand against unjust violations of your privacy and discrimination in the workplace. Learn more about how our expert attorneys can defend your rights by scheduling a free consultation today.

According to a proposal made by the federal Department of Labor (DOL), the agency intends to revise how independent contractors are classified under law. The proposed rule would significantly alter the most recent definition, which was finalized in 2021. Should the DOL’s newest proposal be implemented, it will significantly reduce the number of workers who can be classified as independent contractors nationwide. 

For many workers, this would be a net benefit. However, it is still a significant change. It is in your best interest as an independent contractor to understand how the update could affect you and what it may mean for your future. 

How the New Rule Could Change Federal Law

Currently, independent contractors are defined based on the DOL’s 2021 rule. This rule outlines five factors, including two “core” factors, that are used to determine if a given worker is an independent contractor. The core factors are:

• The amount and type of control the worker has over their work
• The worker’s opportunity to make a profit or loss depending on their skills

If a worker has significant control over how, where, and when they do their work, and if they stand to gain or lose depending on the quality of their work, the DOL’s current rule states there is a substantial likelihood that they are a contract. If there is still doubt, the DOL considers the other three factors:

• The amount of skill the work calls for
• The permanency of the working relationship
• Whether the work is “part of an integrated unit of production”

Under these rules, “gig economy” workers are generally considered independent contractors due to the core factors test. However, the DOL has determined that the current rule is inconsistent with current judicial precedent and the Fair Labor Standards Act (FLSA).

The proposed rule is intended to resolve these issues. It would institute a new collection of six factors, which are intended to be given equal weight. These factors include:

• Whether the worker’s managerial and negotiative skill impacts their opportunity for profit or loss
• Whether the employee is making independent investments into their work
• The permanency of the working relationship
• The amount of control the worker has over their work
• Whether the work they perform is integral to the employer’s business
• Whether the worker needs specialized skill and initiative to advance their business

These new factors are more specific and place a much heavier emphasis on the entrepreneurial spirit of the worker. The intention of this rule is to ensure that workers who genuinely wish to run their own businesses can remain independent contractors, while preventing employers from misclassifying workers to cut down on benefit and overtime costs.

How the New Rule Compares to California Laws

If the DOL finalizes the independent contractor rule, it will go into effect nationwide. However, it may not have as much of an impact in California as it will in other states. This is because the state has implemented a number of laws in recent years to restrict how companies may classify their workers. 

First, Assembly Bill (AB) 5, which was implemented in 2020, codified the ABC test to determine whether a worker can be classified as an independent contractor:

• “The worker is free from the control and direction of the hiring entity in connection with the performance of the work.”
• “The worker performs work that is outside the usual course of the hiring entity’s business.”
• “The worker is customarily engaged in an independently established […] business of the same nature as that involved in the work performed.”

This law is stricter than the current federal rule, but the DOL’s proposed rule would tighten the definition further. 

In addition, the passage of Proposition 22 added a major loophole to AB 5, allowing “app-based drivers” to continue to be classified as independent contractors despite the ABC test. If the DOL implements its proposed rule, this loophole would be closed, and California gig economy workers would finally be considered employees, not contractors.

How Will the New Law Affect You?

The DOL rule is not intended to force entrepreneurs to accept W-9 employment if they don’t want it. If you are satisfied as an independent contractor and do not want the possible restrictions of being a standard employee, the possible change should not affect you. However, the law will benefit many workers currently classified as contractors.

Independent contractors are not protected under the federal Fair Labor Standards Act (FLSA). These workers are considered to be their own employers, and the people paying them are their clients. As such, they are responsible for providing their own health insurance and negotiating contracts that provide them with fair pay. In return, they are supposed to receive the flexibility to pick and choose their clients, negotiate their rates, and get their work done on their own schedule.

Unfortunately, many gig workers currently receive all the drawbacks of independent contractorhood without the benefits. They may only be able to work for one or at most two companies, they cannot negotiate the rates at which they are paid, and they are restricted to working when demand is high. If the new DOL rule is implemented, though, this would change. They would receive the rights guaranteed eny employee, including health insurance, overtime pay, and minimum wage. 

Expert Legal Assistance to Fight Employment Misclassification

While the DOL hasn’t finalized its new rule, it is likely that a version of the regulation will be implemented in the next year. In the meantime, many independent contractors around California can still rely on AB 5 to help them pursue fair employment. 

If you believe you have been misclassified as an independent contractor, you can get help to pursue fair employment under the FLSA and AB 5. At Le Clerc & Le Clerc LLP, we can help. Learn more about how our California employment law firm can help you protect your employee rights by scheduling your free consultation today. 

California has one of the best social safety nets in the nation. One benefit many workers are unaware of is the California Paid Family Leave (PFL) program, which is specifically designed to provide workers with income if they need to take time off work to care for a family member. This program provides invaluable support for people who need to step away from work responsibilities to care for loved ones.

Unfortunately, many employees are hesitant to take time off, even with pay, because they worry the time away may impact their employment. However, it is illegal for employers to retaliate against workers who have taken leave or received government benefits. Here’s what you need to know about PFL in California and what to do if your employer penalizes you for taking leave. 

California’s Paid Family Leave Program

Paid Family Leave is managed by the California Employment Development Department as part of the State Disability Insurance (SDI) program. While PFL is not the same as disability insurance, it has many similarities. The benefits are funded by SDI contributions deducted from W-2 employees’ paychecks and contributions to the Disability Insurance Elective Coverage (DIEC) program. 

These funds provide eligible workers with up to eight weeks of partial wage replacement if they need to take time off to care for a family member. PFL currently covers 60-70% of your weekly pay based on your highest quarterly income in the past year, up to a limit of $1,620 per week. These funds are intended to help you cover bills and maintain your quality of life while you take care of your loved ones. 

PFL only applies if you take time off to care for someone else. If you need to take time off work because you are injured or ill, you must apply for disability insurance coverage instead. 

Eligibility for Paid Family Leave

If you receive a W-2 in California, you are likely eligible for PFL. As long as you have received at least $300 in pay from which SDI has been deducted during your “base period,” you have contributed to the program and could receive benefits. Your base period consists of 12 months, beginning 18 months prior to when your time off begins. For example, if your leave starts on February 1^st, 2023, your base period would be November 2021 to October 2022. 

In addition to contributing to SDI through your paycheck, you must also meet the following criteria to be eligible:

• You are employed or actively looking for work when you need to care for someone.
• You are unable to do your customary work.
• You are:
  • Bonding with a new child within one year of their birth, adoption, or foster placement; OR
  • Providing care for a seriously ill family member whose illness incapacitates that person to the point that they require assistance with performing regular daily activities or attending subsequent treatment or inpatient care; OR
  • Participating in events related to a family member’s military deployment to a foreign country.
• You can provide supporting documentation regarding the medical needs of the family member.

How to Take Paid Leave

If you meet the requirements above, you’re eligible to receive benefits from the state while you take time off work to help your family. To request wage replacement benefits, you apply directly through the state SDI portal. 

However, you cannot receive PFL if you are currently receiving wages. You must take time off from your job if you’re currently employed. If you currently have a job and want paid family leave, the best solution is to request unpaid time off from your employer, then apply for PFL through the state. 

The requirements for requesting PFL overlap with the requirements for unpaid leave under the federal Family Medical Leave Act (FMLA) and the California Family Rights Act (CFRA). These laws require covered employers to provide workers with 12 weeks of unpaid leave if they have worked at least 1250 hours for them in the past 12 months. 

During CFRA leave, your employer must continue to provide your benefits but will not pay you. They must also allow you to return to your job at the same hours, location, rate of pay, and benefits when you return to work. They may not retaliate against you in any way for requesting this time off. If they do, you may have grounds to take legal action against them. 

What to Do If Your Family Leave Impacts Your Employment in California

If you are eligible for both CFRA and PFL programs, you have every right to take time off work to care for your family. However, unscrupulous employers may attempt to discourage you from taking this time off or retaliate against you for inconveniencing them. Examples of this retaliation include:

• Refusing to grant you unpaid CFRA time off despite meeting the eligibility requirements
• Threatening you with adverse employment action such as termination or demotion for taking leave
• Firing you, refusing to promote you, withholding raises offered to other employees or otherwise taking adverse action against you during or after your leave
• Refusing to maintain your benefits during your time off
• Deducting PFL from your benefits during or after your time away

All of these actions are illegal, but they still occur. If you have been retaliated against for taking protected family leave in California, you have grounds to take legal action against your employer. At Le Clerc & Le Clerc LLP, we are dedicated to helping clients like you stand up for your right to take family leave in California. We can help you address workplace discrimination and retaliation and seek justice and compensation for your losses. Learn more about how we can help you by scheduling your consultation today.

California has been taking significant legislative steps to improve conditions for workers over the past two years. Earlier this year, the state chose to expand the California Family Rights Act (CFRA), but it didn’t stop there. This past fall, Governor Gavin Newsom signed into law improvements to both the Paid Family Leave (PFL) and State Disability Insurance (SDI) programs that will give lower-paid workers more support. 

These programs are invaluable for allowing workers to receive a portion of their regular wage if they need to take time off to care for their families. While CFRA will enable workers to take unpaid time off work to care for family members or themselves and protect their jobs, many lower-paid employees hesitate to take time off because of the impact on their finances. 

The updates to PFL and SDI will make it easier for these workers to take the time they need to care for themselves or those they love. Here’s what you need to know about the updates to these programs and how you can request CFRA leave and PFL or SDI compensation.

Understanding California Paid Family Leave and State Disability Insurance

Governor Newsom made waves when he signed Senate Bill (SB) 951, which adjusts both the Paid Family Leave and State Disability Insurance programs. PFL is intended to provide up to eight weeks of wage replacement benefits to eligible workers if they need to take unpaid time off work for qualifying reasons, which include:

• Caring for seriously ill children, parents, spouses and registered domestic partners, siblings, grandparents, or grandchildren. 
• Bonding with a new child through birth, adoption, or foster placement.
• Qualifying exigencies related to a family member’s military service. 

These cases directly correlate with almost all qualifying reasons to take time off under the CFRA. The exception is for injuries, illnesses, or conditions affecting the worker themselves. This is because SDI is in place to cover those situations. You can apply for SDI to receive wage-replacement benefits if you are an eligible employee who cannot work due to a non-work-related illness, injury, or pregnancy. This neatly covers most of the remaining reasons why CFRA may be used. 

Revisions to PFL and SDI

SB 951 significantly adjusted how PFL and SDI payments will be calculated. Currently, the programs allow workers to receive up to 70% of their regular wages while they qualify. However, this places many lower-earning workers below the minimum wage, which can significantly impact their ability to support themselves and their families. As such, these workers may opt not to take time off because even a 30% cut to their wages is too much to justify taking time off to care for loved ones. 

That’s why SB 951 was written. Under the bill, a new benefit calculation will go into place starting in 2025. The new calculation considers the state’s average wage when determining the benefits eligible workers will receive. Any worker who receives 70% or less of California’s average wage would be eligible to receive 90% of their average pay instead of 70%. This significantly reduces the impact of taking unpaid leave, as lower-paid workers will only take a 10% cut to their earnings instead of 30%. 

How to Pursue CFRA Leave and PFL Compensation

While it will be several years before the updates to PFL and SDI kick in, you can still receive wage-replacement benefits if you take time off. Even 70% of your earnings can be invaluable if you or a loved one is ill and you must stay home from work. First, however, you should ensure you can take that time off to heal or care for your family under CFRA. 

Only eligible employees can take CFRA leave. You’re eligible if:

• Your employer has five or more workers or is a public agency
• You have worked for your employer for at least 12 months
• During the past 12 months you’ve worked for your employer, you have worked at least 1250 hours for them
• You have not yet taken 12 weeks of CFRA leave in the preceding 12-month period

If you meet these conditions, you can take leave for all the reasons that make you eligible for SDI or PFL payments. You may need to provide your employer with proof that you or your loved one is sick with a doctor’s note or that you have a new child by showing them documentation of the birth, foster placement, or adoption. 

If your request for CFRA leave is unfairly denied, this can impact your ability to request PFL or SDI. Voluntarily quitting a job may affect your eligibility for these programs, and you cannot receive payments from either if you continue working. In that case, taking action against your employer may be necessary to have your request for leave granted. 

This may be as simple as notifying HR that your request was unfairly denied and explaining your reasoning. However, if your complaint is ignored, or if you have been fired or otherwise retaliated against for requesting your state-protected leave, you may need legal help.

Legal Assistance for Unfairly Denied CFRA Leave Requests

When you believe your request for CFRA leave has been denied, your first step should be to consult with an experienced employment law attorney. Your employer does not have the stress of an illness or lost income impacting its ability to fight your claim. If you want the best possible chance of receiving protected CFRA leave and PFL or SDI payments, you need to have knowledgeable experts on your side. 

That’s where the attorneys at Le Clerc & Le Clerc LLP can help. We are dedicated to protecting your employee rights and have years of experience acting as legal counsel to California workers. Learn more about how we can help you negotiate or litigate your denied CFRA claim by scheduling your free consultation.

Many people assume that racism, sexism, and other forms of discrimination in the workplace need to be overt before they can be addressed. This isn’t true. Under Title VII of the Civil Rights Act of 1964, employers may not discriminate against workers because they are part of a protected class. The bill says nothing about whether that discrimination must result from conscious bias. 

Today, most employment discrimination is actually caused by unconscious bias. While this can be harder to prove, it’s no less damaging to its victims. Learn how to identify unconscious bias in your workplace, how it can harm workers, and what you can do to stop it. 

What Is Unconscious Bias?

Unconscious bias is prejudice for or against someone because of aspects of their identity that isn’t done purposefully. In contrast, conscious bias is deliberately taking discriminatory actions against someone because of a trait like skin color, religion, or gender. 

This difference is critical because unconscious bias is far more widespread. Even people who believe they are “color-blind” or otherwise accepting may have subconscious biases that they don’t recognize. This makes it far more challenging to address the effects of unconscious prejudice than conscious racism, sexism, or other biases. 

Subconscious prejudice is the result of uncritical acceptance of stereotypes. For example, someone can consciously believe that sexism is wrong but may have internalized the idea that women are bad at math. If this unconscious bias isn’t noticed and accounted for, they may be less likely to hire or promote women into roles that require a lot of math despite their qualifications. 

The problem with unconscious prejudice is that it can lead to organization-wide inequities without any one person actively trying to harm or push out minorities. One recruiter or manager with unexamined biases can impact the careers of everyone below them. If these biases are found throughout the organization, it can quickly shape a company’s culture to be hostile to women, people of color, religious minorities, and other protected classes. 

The Impact of Unconscious Biases on Workers

While unconscious bias isn’t as blatant on a case-by-case basis as active harassment, it can still seriously harm workers. It is just as harmful to refuse to promote someone because of an unconscious assumption that they’re lazy as it would be to withhold a promotion because they’re Black. Some of the most significant impacts this type of prejudice has on workers include:

• Reduced Job Opportunities: Minorities often struggle to receive the same opportunities and pursue the same jobs as white and male colleagues. Studies have shown that the same resume with an “anglicized” or gender-neutral name is significantly more likely to be considered for an interview than identical resumes with non-European or feminine names. The subconscious bias of the hiring teams often prevents workers from getting jobs in the first place. 
• Stalled Career Growth: These biases can make it difficult for victims to continue growing their careers. For instance, women often struggle to receive the same promotions and raises as their male colleagues, particularly if they are mothers, due to the unconscious assumption that they are less dedicated to their jobs. 
• Hostile Workplaces: If management has internalized negative stereotypes about specific demographics, the entire organization can develop toxic attitudes towards those groups. Minorities who are hired and promoted may feel uncomfortable, excluded, and unable to report harassment or microaggressions for fear that they will “support” the stereotypes management believes.

Standing Up to Workplace Bias

It should not be your responsibility to fix your employer’s unconscious biases. However, making them aware of these tendencies may fall to you. If that doesn’t lead to change, you may need to take legal action to receive the fair treatment you deserve. Here’s how you can stand up to workplace bias and fight against trends harming your career.

• Talk to your colleagues. The most effective way to determine if unconscious bias is at play in the workplace is to talk with your coworkers. If management consistently appears to discriminate against people of a certain race, religion, or gender, your colleagues have likely noticed as well. Talk to them about their experiences and see if they have noticed anything you may have missed. 
• Document trends of discrimination. When you do find trends, document them. For example, collect organization charts for your company and note the relative diversity across the organization and between different levels of authority. Who has been promoted, and who has been fired or forced to resign? These trends are some of the best evidence you have of systemic discrimination. 
• Notify Human Resources: Even if you don’t believe it will make a difference, you should still communicate your concerns with the person or department in charge of hiring at your company. This demonstrates that you’re acting in good faith and may occasionally be enough to spur your employer to take anti-bias action. 
• Talk to an experienced lawyer. If your concerns are dismissed, it’s time to get help. Consult with a qualified workplace discrimination attorney about your circumstances. They will help you find the best path forward, whether that’s negotiating with your employer or taking legal action. 

Pursue Equitable Treatment With Expert Legal Counsel

Because unconscious bias, by definition, is not done on purpose, it can be hard to prove. That’s why it’s critical for you to consult with an experienced employment law attorney if you suspect you and your colleagues are suffering from discrimination caused by subconscious prejudices. At Le Clerc & Le Clerc LLP, we understand how stressful it can be to lose out on opportunities at work because of your identity. We have a strong track record of success helping clients like you pursue compensation for the discrimination they’ve faced at work, no matter the reason. Call 415-445-0900 or contact us online to learn more about how we can help you.