On January 10th, 2024, the U.S. Department of Labor released their final rule, replacing prior guidance from 2021 on who is an independent contractor and who is an employee, under the Fair Labor Standards Act (FLSA). 

The rule, going into effect on March 11th, 2024, governs which workers will be considered an employee with overtime pay, minimum wage pay, and other benefits, from independent contractors. The bureau of labor statistics (BLS) estimates that around 7% of the workforce work as independent contractors.

While the federal minimum wage remains $7.25, most states (and some counties and cities) have raised the minimum wage for workers to higher levels. In 2024, we have tracked 23 states with changes as of January 1st or later in the year, as well as multiple California cities and counties.

On February 9th, 2024, in the United States Northern District of California, Walmart and Energizer Holdings’ motion to dismiss three potential class actions against over allegations they colluded to raise and fix battery prices was denied. Schneider Wallace is a national plaintiff and consumer law firm representing those injured after anticompetitive behavior, and represents plaintiffs here against Walmart and Energizer.

See below for links to the Order Granting Class Certification, Denying Motions to Strike in Banks v R.C. Bigelow, Inc, and the Class Notice in Banks v R.C. Bigelow, Inc.

On Tuesday, January 9, 2024, in a unanimous decision, the First District Court of Appeal of California made clear that drug manufacturers like Gilead cannot escape liability for alleged negligent decision-making – in this instance Gilead’s decision to withhold the safer HIV anti-viral drug (TAF) in order to maximize profits.

Schneider Wallace Cottrell Konecky LLP, a national plaintiff side law firm, is pleased to announce the promotion of James Bloom to a partner at the firm. Mr. Bloom practices as a member of the firm’s consumer rights team, primarily representing plaintiffs, consumers and employees in class action and consumer cases. Mr. Bloom practices at the Emeryville firm headquarters in the Bay Area, California. 

Mr. Bloom has represented the trustees, fiduciaries and participants of ERISA covered plans, including defined contribution plans, 401(k) plans, pension plans, employee stock ownership plans (ESOPs) and welfare plans in a wide variety of ERISA claims related to the plan management, fees and benefits. Mr. Bloom has also represented clients ranging from businesses like banks and hedge funds to employees, shareholders, consumers and property owners as plaintiffs and defendants in commercial cases of many kinds, including securities, bankruptcy, real estate, corporate and contractual disputes.

Starting January 1st, 2024 California employers will be required to offer increased sick hours, increase availability of sick pay to newer workers, allow additional roll-over or carry over of hours, and allow a higher cap on total sick time accrued. The new rules are contained in SB 616, signed into law on October 4th, 2023.

Two laws, SB 699 and AB 1076, amend existing California law limiting the enforcement of non-compete agreements and non-compete clauses. California employment law has maintained a dim view of non-compete agreements, and the new laws further cement this position. 

SB 848 adds a new type of protected leave after a California workers experiences a loss of pregnancy or other reproductive loss event.  The law allows for up to 5 days of leave for events covered under the new law. 

Binance Holdings Limited, the company that operates Binance.com, pleaded guilty to multiple violations of the Bank Secrecy Act and agreed to pay a total of $4.3 billion in penalties. The settlement is to resolve ongoing investigations regarding allegations Binance failed to register as a money transmitting business and for violations of the Bank Secrecy Act and International Emergency Economic Powers Act.

New York Governor Kathy Hochul signed legislation that broadened the scope of the New York False Claims Act (NYFCA). This expansion targets entities that fail to file tax returns in New York state. This is different from the federal False Claims Act, and most False Claims Acts in other states, where tax-based claims are excluded. It also separates New York from States that allow tax-related claims, but only for false claims within submitted documents. States maintaining tax-related False Claim Act matters include Illinois, Indiana, the District of Columbia and New York. 

On August 4th, 2023, the Ninth Circuit reversed a district court summary judgement in favor of the defendant AT&T Benefit Plan Investment Committee (AT&T), regarding a class action alleging Employee Retirement Income Security Act (ERISA) violations from prohibited fees. The Plaintiffs are being represented by Schneider Wallace Cottrell Konecky LLP.