On March 28, 2019, the Department of Labor (“DOL”) offered hope to retailers and others in the employer community seeking clarity regarding compliance with the Fair Labor Standards Act’s overtime calculation rules, by issuing a notice of a final rule to update the principles applicable for calculating the “regular rate.” It has been more than

The U.S. Department of Labor recently issued a proposed final rule that would increase the minimum salary required for most ‘white collar’ employees to remain exempt from the FLSA’s overtime requirements. DOL anticipates that the new rule will make one million more U.S. workers eligible for overtime, many of whom work in the retail sector.

Recent months have shown a dramatic increase in suits against retailers by cashiers seeking seats at work. The influx results from two California Court of Appeal decisions in late 2010 that permitted the plaintiff cashiers to pursue suits against their employers for not providing seating. Several suits filed since then come from cashiers seeking to

Chipotle Mexican Grill coined the phrase the “Chipotle Experience” to describe customers’ participation in the preparation of their meal. In July 2010, the Ninth Circuit ruled in Antoninetti v. Chipotle Mexican Grill, Inc., that the Chipotle Experience violated the ADA because there was no “equivalent facilitation” for customers in wheelchairs, who could not see over a wall separating the food from the customers. The court awarded injunctive relief, damages, and attorney’s fees. Like Chipotle, other restaurants and retailers are at risk for failing to offer the same customer experience to all their patrons, particularly if they advertise the experience to the public.


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Case: Kullar v. Foot Locker Retail Inc., Case No. A119697 (Cal. Ct. App. 11/7/08)

The One Sentence Summary: Approval of a $2 million settlement in a wage-and-hour class action against a retailer was vacated because the trial court failed to independently analyze the evidence and circumstances surrounding the settlement.


What They Were Fighting About: Defendant

Employment contracts with non-competition clauses are common outside of California, but a California statute, section 16600 of the California Business and Professions Code, prohibits non-compete contracts outside of a few statutory exceptions. In a decision issued on August 7, 2008, Edwards v. Arthur Anderson, No. S147190, the California Supreme Court held that section

Case: Costco Wholesale Corporation v. Superior Court (Cal. Ct. App. 3/27/08)

The One Sentence Summary: Where a redacted version of a letter prepared by Costco’s outside counsel detailing a comprehensive factual investigation and legal analysis of the classification of managers within Costco warehouses disclosed only job descriptions of certain managers readily available from other sources,