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When California-based interstate motor carriers send their drivers into other states, are the drivers still protected by California employment laws? Conversely, when non-California based interstate motor carriers send their drivers into California, which California laws, if any, apply to them? In two decisions last year, the California Supreme Court tried to define some of the limits of the “intraterritoriality” of California’s laws, i.e., when California’s employment laws cover non-California based drivers driving into California. At the same time, the federal Ninth Circuit Court of Appeals has explored the limits of the “extraterritoriality” of California’s laws, i.e., when California’s employment laws cover California-based employees traveling outside of California. The answers to these questions can have real consequences. For instance, the employer of drivers who are entitled to California compliant wage statements but who do not receive them, can potentially be subject to civil penalties of $250 per employee per pay period, or $13,000 per year, in addition to statutory penalties of $4,000 per employee per year. For a carrier with 50 drivers, the potential could be $850,000 in penalties per year. In this program, Richard Rahm of DLA Piper LLP, will discuss recent case law affecting these questions and offer some guidelines as to how employers can best protect themselves from some of these laws.
Key takeaways will include:
- How employers can best protect themselves from California employment laws inside and outside of California.
- How employers can best comply with California employment laws when drivers are covered by California laws.
About the Presenter:
Richard Rahm, Partner, DLA Piper LLP
Richard Rahm counsels and represents employers in the trucking industry in state and federal class and collective actions, appeals and arbitrations. He is a resident of the San Francisco Office of DLA Piper, a full-service law firm with offices in over 40 countries.
Richard obtained his B.A. from UCLA, his M.Litt. from Oxford University, and his J.D. and Ph.D. from the UC Berkeley School of Law.
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