Bus Law Employment Law

Worker will be either Employee or Independent Contractor.

Employee: Anyone an employer "suffers and permits to perform work for them."

Independent Contractor (IC): Someone with their own business who provides services in a temporary, specific capacity — not an employee. Example: PLUMBER

What is employee misclassification?

When an employer incorrectly labels a worker as an IC to avoid paying wages, taxes, workers' comp, etc.

What is the ABC Test?

CA test to determine IC status.

A = No control over how they work;

B = Work is outside the company's usual business;

C = Worker is customarily engaged in that trade independently.

What is the Borello Test?

Federal multi-factor test for IC status, weighing things like control, tools used, skill required, method of payment, and whether the parties believed they had an employer-employee relationship.

What does California presume if no classification is made?

The worker is presumed an employee if the employer "suffers and permits" them to work.

What are "joint employers"?

Two businesses that both benefit from a worker's labor and share employer liability for wages, injuries, etc.

Why do employers prefer classifying workers as ICs?

ICs handle their own taxes, insurance, and costs vs. employees require minimum wage, overtime, workers' comp, and payroll tax contributions.

CONRTACTS: What is At-Will Employment?

The employer can fire the employee, and the employee can quit, at any time, for any reason, with or without notice — unless a contract says otherwise.

CONTRACT: What is a Non-Compete Agreement?

Contract restricting an employee from competing with the employer. Enforceable during employment. NOT enforceable in CA after employment ends

CONTRACT: What is a Non-Disclosure Agreement (NDA)?

A contract protecting a company's confidential information and trade secrets. Enforceable in CA.

CONTRACT (after employment): What is a Severance Agreement?

A voluntary post-employment contract where the employer pays additional compensation in exchange for the employee releasing most legal claims. (can’t sue employer). Not required by law.

CONTRACT: What can a CA severance agreement NOT restrict?

It cannot prevent the employee from disclosing info about sexual harassment, discrimination, retaliation, or other unlawful activity.

TORTS: What federal law prohibits workplace discrimination?

Title VII (TITLE SEVEN) of the Civil Rights Act of 1964.

TORTS: What CA law prohibits workplace discrimination?

The California Fair Employment & Housing Act (FEHA).

TORTS: What is Quid Pro Quo harassment?

When someone with power over employment decisions seeks a sexual favor in exchange for a positive outcome.

TORTS: What is Hostile Work Environment harassment?

Conduct that unreasonably interferes with work performance or creates an intimidating, hostile, or offensive work environment.

TORTS: When must CA employers protect employees from harassment by non-employees?

When they have a contract with the non-employee's business, knew or should have known about the harassment, and failed to take immediate corrective action. (2003 FEHA amendment)

TORTS: What did Miller v. CA Dept. of Corrections establish (2005)?

Sexual favoritism of employees can create hostile work environment.

TORTS: What is AB 1825?

2005 CA law requiring employers with 50+ employees to provide mandatory sexual harassment training to supervisors.

TORTS: What is SB 1343?

2020 CA law requiring employers with 5+ employees to provide 1 hour of harassment training to ALL employees, including seasonal and temporary workers.

TORTS: What is retaliation under FEHA?

Punishing an employee (termination, schedule change, being ignored, etc.) for opposing discrimination, filing a complaint, etc.

TORTS: Who is liable for supervisor harassment?

The employer is automatically liable for harassment by supervisors and agents.

TORTS: Who is liable for co-worker harassment?

The employer is liable if they knew or should have known about it and failed to take immediate corrective action.

STATUTES: CA minimum wage vs. federal minimum wage (2026)?

CA: $16.90/hr (fast food: $20.00);

Federal: $7.25/hr (still used by 20 states).

STATUTES: How does CA overtime differ from federal?

Federal: OT after 40 hrs/week.

CA: OT after 40 hrs/week AND after 8 hrs/day.

STATUTES: CA vs. federal overtime exemption salary threshold?

You don’t have ot pay overtime if

CA minimum: $70,304/yr and must spend 51%+ of time

Federal minimum: $35,568/yr.

STATUTES: CA meal break requirements vs. federal?

CA requires a 30-min unpaid break before the end of the 5th hour; missed break = 1 hour premium pay.

Federal law does not require meal breaks.

STATUTES: CA paid sick leave requirement vs. federal?

CA requires up to 40 hrs/5 days of paid sick leave for employees working 30+ days.

Federal law does not require paid sick leave.

STATUTES: Workplace Safety

•Federal agency is known as OSHA, which stands for the Occupational Safety and Health Administration (OSHA)

•CA’s agency is known as the Department of Occupational Safety and Health (DOSH—but frequently goes by the nickname “Cal OSHA”)

STATUTES: WORKER’S COMPENSATION

•Ensure medical care and replacement of wages if injured or ill due to work. So if someone slips and falls at work, it is covere dby Workers COMP.

•Puts Caps on liability

•Is an Exclusive remedy for industrial injuries

•Is Mandated by law for all employers

•Carries enalties for failure to provide it