If the IWC wanted to allow on-duty breaks , the court reasoned , it would have done so specifically , as it did for meal breaks . It did not . While on-duty lunch breaks are paid , rest periods are not . Requiring the employee to work during on-duty rest periods would be akin to requiring a worker to perform free work , the court concluded .
The same goes for on-call rest periods . Even if an employer releases a worker from employment duties while on break , the employer cannot then require the worker to remain on-call during that time . “ One cannot square the practice of compelling employees to remain at the ready , tethered by time and policy , to particular locations or communications devices ,” with the requirement that employees be given rest periods , the court wrote .
In its conclusion , the court lays out the takeaways quite clearly : Wage Order 4 , subdivision 12 ( A ) and section 226.7 prohibit on-duty rest periods . What they require , instead , is that employers relinquish any control over how employees spend their break time , and relieve their employees of all duties – including the obligation that an employee remain on-call . A rest period , in short , must be a period of rest .
It is unclear how trucking companies in California will accommodate these new laws , as the business of trucking does not fit nicely into the premise of these rules . Companies will be forced to adhere to the rules , even though they don ’ t make sense for drivers , and the drivers will surely be confused . What could possibly go wrong ! And you know how it usually goes – as goes California , so goes the rest of the country . It ’ s only a matter of time .
WORKER MISCLASSIFICATION
Are you aware that at this very moment , your company could be at risk ? With 2017 comes a myriad of new laws and regulations , plus court cases that could affect your business . One of the most critical issues today is worker misclassification . It affects companies of any size and , if left unaddressed , can have serious financial ramifications . Worker misclassification is the practice of labeling and treating workers as independent contractors rather than employees , either deliberately or accidentally .
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Most companies are unaware that they ’ re even doing it , let alone the risk it creates for their company , even though the misclassification is accidental on their part .
To reduce payroll costs and avoid paying standard benefits or unemployment and payroll taxes , some employers misclassify their workers . Instead of calling them employees , they put them under the independent contractor umbrella ( commonly perceived as anyone who completes a 1099 form ), hoping to cut costs . These companies are putting their bottom lines at tremendous risk . Many large companies have already learned tough lessons about the consequences of misclassification . Heavy hitters like Uber , Lyft , and FedEx have all felt the financial sting of such consequences , with hefty price tags , in the hundreds of millions .
Equally alarming for employers is the recent crackdown on misclassification by the Internal Revenue Service ( IRS ) and the Department of Labor ( DOL ), which believes that 30 % of employers may be misclassifying their workers . Meanwhile , the IRS has ramped up the investigation and enforcement of misclassification to recoup what could be billions of dollars in lost tax revenue . To improve compliance and present a united front on the issue , the IRS and the DOL signed a memorandum of understanding , allowing the sharing of information and resources to increase compliance with both federal tax requirements and labor laws .
As the head of your company , no matter its size , it ’ s time to ask some difficult questions . As a company , are you creating unnecessary risk , and , if so , how would it impact you financially ? As an employer , you should look at your business practices and determine if misclassification has occurred . If it hasn ’ t , then you will have increased awareness and can stay vigilant to ensure continued compliance . But , if you discover that misclassification is occurring , you should formulate a plan to address it , correct it , and bring your company into compliance . The short-term promise of a potential payroll savings won ’ t matter if your company gets hit – either by a lawsuit or by a multi-agency audit .
We all want to lower our costs and improve productivity , but we must achieve these benefits without breaking the labor laws . I feel tremendous
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