Ferruzzo & Ferruzzo LLP

TAX CUT AND JOBS ACT OF 2017 / REVIEW OF CURRENT ESTATE PLAN - James K. Leese Increased Exemption Amounts Here are the major changes brought about by the New Tax Law:...Continue reading

UNITED STATES SUPREME COURT ALLOWS EMPLOYERS TO REQUIRE EMPLOYEES TO WAIVE CLASS ACTION CLAIMS IN ARBITRATION AGREEMENTS Class action lawsuits are one of the greatest threats employers face in today’s business landscape. The potential liability in class actions often threatens a company’s survival, because they exponentially increase monetary damage exposure. These actions create crisis situations for nearly all companies facing such litigation. However, the United State...Continue reading

INDEPENDENT CONTRACTOR CLASSIFICATION SEVERELY LIMITED BY CALIFORNIA SUPREME COURT The California Supreme Court dealt a severe blow to businesses, restricting the manner in which workers may be classified as independent contractors. On April 30, 2018, the Court issued a decision in Dynamex Operations West, Inc. v. Superior Court which significantly limits the ability to classify workers as independent contractors. Although the workers in the Dynamex decision were drivers..., the ruling potentially impacts every industry. Previously, California followed a multi-factor test which has now been replaced by a different standard referred to as the "ABC" test. Under the new analysis adopted by the Court, workers are presumed to be employees unless all of the following tests are met: A. Is the worker free from the control and direction of the hiring entity in the performance of the work, both under the contract for the performance of the work and in fact? B. Does the worker perform work that is outside the usual course of the hiring entity's business? C. Is the worker customarily engaged in an independently established trade, occupation, or business of the same nature as the work performed for the hiring entity? In its decision, the Court referenced that both federal and state governments have declared losing billions of dollars in tax revenue due to worker misclassification. As a result, employers can expect an increase in claims based on independent contractor classifications. Businesses should conduct a review of their independent contractor arrangements to determine whether they meet the new ABC test. Contractor relationships that do not meet the test will require attention, which may include reclassifying workers. The manner in which reclassification is conducted should be given significant consideration to minimize the chance of a claim. Employers who misclassify employees face the potential for stiff fines and payroll tax obligations. Misclassification impacts additional areas as well, including the risk of claims for unpaid minimum wage, overtime, meal and rest break premiums, and benefits. If you have independent contractors, it is a good time to work with an employment attorney to review those relationships, and reclassify workers if necessary in light of the Dynamex decision. Questions about how the ABC test affects your business may be directed to the employment attorneys at Ferruzzo & Ferruzzo, LLP. We are here to help.

New California Law Prohibits Employers from Inquiring About Salary History Effective January 1, 2018, new California Labor Code section 432.3 makes it a violation of law to ask a job candidate about the compensation and benefits the candidate earned at the candidate's prior position(s). An applicant may voluntarily disclose his/her prior salary history, as long as it is done without prompting or encouragement from the potential employer. If disclosed voluntarily, the employ...er may use this information for purposes of determining the salary and benefits that will be extended to the applicant. Although, employers are prohibited from asking about salary history, an employer may still ask what compensation and benefits the applicant is seeking. In addition, the new law permits applicants to ask a prospective employer to provide a salary range for the open position. Employers must provide an applicant with the pay scale for the position, when it is requested. What should employers do now? If you haven't reviewed your employment application for compliance with state and federal laws, now is the time. Revise your application to remove any requests for salary history information. Including an inquiry such as, "Pay Desired" is still permissible. Prepare in advance before posting and advertising your open positions. Determine your pay ranges for each position in the event you receive inquiries from applicants. It is important to update your hiring process, particularly your screening and interviewing guidelines. Do not include questions about prior pay or benefits. You may inquire about compensation and benefits desired. Provide guidance and training to your managers and supervisors on interviewing best practices. They will need direction on how to respond to applicant inquiries about pay. They will also need to be reminded not to ask questions about prior compensation and benefits, as well as trained on how to handle an applicant's voluntary disclosure of his/her salary history. The text of the new legislation may be found here: https://leginfo.legislature.ca.gov/fac/billNavClient.xhtml If you have questions about your hiring practices, you may contact the employment attorneys at Ferruzzo & Ferruzzo, LLP.

Colleen McCarthy was quoted in society for human resource management article "Fitting in Exercise on Company Time and the Company's Dime" https://www.shrm.org//fitting-in-fitness-on-company-time.a

California Businesses Can’t Afford to Be Anything Less Than Vigilant About Employee Meal Break Rules It happens time and time again. A client seeks counsel on a particular employment issue having nothing to do with a wage and hour claim. Yet, wage and hour concerns soon become the center of our discussion and the business realizes that potential wage and hour claims far overshadow the biggest employee issues the company thought it had. Wage and hour class action lawsuits are ...Continue reading

It all began over 35 years ago when two brothers, Tom and Jim Ferruzzo came together after pursuing two very different and distinct careers. Tom, the Firm's Founding Partner, was on the launch team for the Saturn V Rocket at the Kennedy Space Center and began practicing law in corporate offices of the space industry. Jim first served our country as an Honest John Missile Battery Commander in the Armed Forces and then began his law career as a trial attorney in the Los Angeles... District Attorney's office prosecuting organized crime. Eventually the brothers' career paths changed, intersecting in 1981 when they formed the partnership known today as Ferruzzo & Ferruzzo, LLP. This is a milestone year and there seems no better time to refresh our brand and position us for the future. While you will notice some changes in our primary branding elements-logo and website for now-please be assured we are the same firm, with the same guiding principles and commitment to our clients' success just as it has been since our inception. We continue to be Rooted in Relationship. We believe the quality of our relationships built over the years is the key reason for our success and the cornerstone of our reputation. For those who have journeyed with us over the years, the outcomes we've achieved together are our greatest reward. As we reach this significant 35-year milestone, the relationships we've formed are the most cherished part of everything we do. Thank you. We look forward to serving you in the years to come.

New Federal Law Implementing Paid Sick Leave for Some Federal Contractors Effective January 1, 2017 The U.S. Department of Labor published its Final Rule on September 30, 2016 granting paid sick leave to certain employees of federal contractors and subcontractors covered by the new law. The Final Rule applies to certain new federal contracts and replacements for expiring contracts that result from solicitations issued on or after January 1, 2017, or that are awarded outside ...Continue reading

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